On Thursday, Morgan Stanley reiterated its Overweight rating on Regeneron (NASDAQ:REGN) Pharmaceuticals shares, with a stable price target of $1,247.00. The firm's decision follows a recent legal development where the Federal Circuit Court issued a temporary injunction preventing Amgen (NASDAQ:AMGN) from launching a biosimilar competitor to Regeneron's Eylea until further notice.
The court's decision comes after a West Virginia judge previously denied Regeneron's request for a preliminary injunction against Amgen's biosimilar version of Eylea. Regeneron had filed an emergency motion on September 24, 2024, stating that Amgen planned to launch its biosimilar "at risk" and that it could be available as soon as October 1st. In response, the Federal Circuit has put a hold on the launch while it considers Regeneron's appeal for an injunction.
The Federal Circuit has set a schedule for the parties involved, requiring Amgen to submit its responses to the motions by October 1, 2024, and Regeneron to file its opening brief by October 3, 2024. The outcome of these proceedings is expected to influence the pharmaceutical market significantly, with updates anticipated in the coming weeks as the appeal process unfolds. Morgan Stanley has indicated that it will continue to closely monitor the appeal docket for any developments that may impact Regeneron's market position and stock value.
In other recent news, Regeneron Pharmaceuticals 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. Amid legal challenges over a patent dispute with Amgen, Piper Sandler and Truist Securities have maintained their positive stance on Regeneron, citing the company's robust pipeline and potential growth.
Leerink Partners, however, downgraded Regeneron's stock from Outperform to Market Perform, while Goldman Sachs reiterated its Buy rating. 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 and the European Medicines Agency's Committee for Medicinal Products for Human Use has recommended the approval of Dupixent for the treatment of eosinophilic esophagitis in children as young as one year in the European Union.
Regeneron is currently appealing a court ruling to protect its Eylea product from biosimilar competition, and has adjusted its full-year 2024 financial guidance, now expecting a gross margin of approximately 89%.
InvestingPro Insights
In light of Morgan Stanley's reaffirmation of its Overweight rating on Regeneron Pharmaceuticals, the InvestingPro data and tips provide additional context for investors. Regeneron's market cap stands at a robust $111.21 billion, reflecting the company's significant position in the biotechnology industry. Its P/E ratio currently sits at 25.69, indicating investor expectations of future earnings growth. The company's revenue growth over the last twelve months was 6.46%, showcasing a steady financial performance.
From an operational standpoint, Regeneron demonstrates a solid gross profit margin of 53.27% and an operating income margin of 30.14%. These margins suggest efficient management and profitability potential. The InvestingPro Tips highlight that the company is a prominent player in its field and operates with a moderate level of debt. Furthermore, the tips indicate that Regeneron's stock has recently entered oversold territory and has experienced low price volatility historically, which might appeal to risk-averse investors.
For those considering a deeper investment analysis, InvestingPro offers additional tips, including insights on the company's share buyback strategy and liquidity position. There are 12 more InvestingPro Tips available for Regeneron, which can be accessed at https://www.investing.com/pro/REGN for a more comprehensive investment evaluation.
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