Piper Sandler has kept a positive outlook on Regeneron (NASDAQ:REGN) Pharmaceuticals (NASDAQ: REGN), maintaining an Overweight rating and a price target of $1,242.00 for the stock.
The firm's stance remains firm despite Regeneron's recent drop in valuation, which saw approximately $14 billion erased over the last two trading sessions.
The decline was roughly a 10% pullback for the biotechnology company's shares.
The position taken by Piper Sandler comes after a legal development involving Amgen (NASDAQ:AMGN), another biotech firm, which recently won a case denying a preliminary injunction related to the ‘865 patent.
This patent dispute pertains to Eylea, a key drug in Regeneron's portfolio. Amgen's victory means it could potentially launch a biosimilar version of Regeneron's Eylea 2mg at any time, which poses a risk to Regeneron's market share for this treatment.
Despite these challenges, Piper Sandler points out that Regeneron has several strategies it can employ to mitigate the impact. One such strategy is the accelerated conversion to Eylea HD, which is believed to have limited exposure to IRA concerns. This move could help safeguard Regeneron's position in the market for this class of drugs.
Regeneron Pharmaceuticals is known for its innovative treatments and has been a significant player in the biotechnology industry.
The company's ability to adapt and introduce new products like Eylea HD is central to its strategy for maintaining a competitive edge in the market. Piper Sandler's reaffirmation of its Overweight rating and price target reflects a belief in Regeneron's potential for growth and resilience in the face of current challenges.
In other recent news, Regeneron Pharmaceuticals has seen a series of notable developments. The company reported a 12% increase in total revenues to $3.55 billion, with Dupixent global revenues surging by 29% to $3.56 billion.
Eylea HD sales in the U.S. held a 45% market share with $304 million in earnings. The company is currently appealing a court ruling to protect its Eylea product from biosimilar competition. Despite this legal challenge, firms like Truist Securities, Goldman Sachs, RBC Capital, and BMO Capital have maintained positive ratings on Regeneron's stock.
Regeneron's drug Dupixent has received expanded approval from the U.S. Food and Drug Administration for adolescent patients with chronic rhinosinusitis with nasal polyps. Additionally, the European Medicines Agency's Committee for Medicinal Products for Human Use recommended the approval of Dupixent for the treatment of eosinophilic esophagitis in children as young as one year in the European Union.
In the pipeline, Regeneron anticipates Phase 2 proof of concept data for its Factor XI inhibitor and Phase 1 data for Linvoseltamab, a treatment for allergy, both expected in the latter half of 2024. The company has also adjusted its full-year 2024 financial guidance, now expecting a gross margin of approximately 89%.
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