On Monday, RBC Capital Markets released its "Biotech Outlook" report, highlighting several biotech companies with promising prospects for 2025. Among the top picks was Regeneron (NASDAQ:REGN) Pharmaceuticals (NASDAQ:REGN), which received an "Outperform" rating with a $1,215 price target.
Despite the early launch of biosimilar competitors to its Eylea drug and the anticipated competition from Vabysmo, RBC Capital maintains that the fundamentals of Regeneron remain solid. The firm anticipates strong growth drivers, including the launch of new treatments and significant clinical readouts, which could more than compensate for the expected decline in Eylea sales.
According to InvestingPro data, Regeneron maintains robust financials with a current ratio of 5.28 and more cash than debt on its balance sheet. The company's stock, currently trading near its 52-week low, shows a P/E ratio of 16.9x and maintains steady revenue growth of 5.72% over the last twelve months.
Amgen Inc . (NASDAQ:AMGN) was also given an "Outperform" rating with a $330 price target. RBC Capital notes that after a pullback at the end of 2024, Amgen's focus on obesity treatments, particularly with its MariTide product, positions the company for share appreciation.
The firm expects updates from Amgen's key franchises and believes that the company is well set for phase III studies in obesity-related conditions throughout 2025. For deeper insights into biotech sector valuations and comprehensive financial analysis, investors can access detailed Pro Research Reports for over 1,400 stocks through InvestingPro.
Sarepta Therapeutics (NASDAQ:SRPT) received an "Outperform" rating and a $182 price target. RBC Capital sees a $3 billion peak opportunity for Sarepta's Elevidys in Duchenne muscular dystrophy (DMD), supported by strong physician and patient enthusiasm. The firm also highlights upcoming readouts from Sarepta's limb-girdle muscular dystrophy (LGMD) programs and newly in-licensed assets, which could solidify the company's position in rare diseases.
Legend Biotech (NASDAQ:LEGN) was rated "Outperform" with an $86 price target. RBC Capital believes that legislative and competitive challenges are now behind the company, allowing investors to focus on Legend's core business and potential sales growth. The firm is optimistic about Legend's ability to double its manufacturing capacity and reach $2 billion in sales.
Lastly, Axsome Therapeutics (NASDAQ:AXSM) was also designated as "Outperform" with a $132 price target. RBC Capital foresees a year full of catalysts for Axsome, including phase III data for treatments in major depressive disorder (MDD) and attention-deficit/hyperactivity disorder (ADHD), along with the anticipated launch of AXS-07 for migraines.
The firm believes that the market has yet to fully appreciate these factors and expects Axsome's sales to exceed $500 million in 2025, with the potential to reach $1.5 billion at peak.
RBC Capital's outlook for these biotech stocks is based on a combination of new product launches, clinical trial readouts, and sales growth expectations, positioning them for potential market gains in the upcoming year. InvestingPro analysis reveals that Regeneron's management has been actively buying back shares, with 10+ additional ProTips available to subscribers, offering crucial insights for investors tracking the biotech sector's evolution.
In other recent news, Regeneron Pharmaceuticals has been the subject of several analyst notes. Piper Sandler reiterated its Overweight rating on the stock, maintaining confidence in the company's Eylea product line despite slow progress in transitioning to its High-Dose counterpart. The firm also highlighted awareness of Avastin supply disruptions, predicting a potential shift in market share.
Conversely, Citi initiated coverage on Regeneron with a Neutral rating, citing concerns over potential market share erosion due to competition and the entry of biosimilars. The firm, however, noticed a positive long-term outlook for Regeneron, particularly in the inflammation and immunology segment with drugs like Dupixent and Itipekimab, as well as in oncology with Libtayo.
TD Cowen maintained a Buy rating on Regeneron shares, underscoring the potential of Eylea HD and Dupixent. The firm also emphasized the significant undervaluation of Regeneron's pipeline, suggesting a strong outlook for the company's research and development activities.
BMO Capital Markets adjusted its outlook on Regeneron shares, reducing the price target due to a shortfall in the high-dose version of Eylea and upcoming competition. However, Regeneron's management remains confident in their product's market position, expecting revenue growth in the second half of 2025. These are the recent developments for Regeneron Pharmaceuticals.
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