TD Cowen maintained a positive stance on Regeneron (NASDAQ:REGN) Pharmaceuticals, reiterating a Buy rating and a $1,230.00 price target for the company's shares. The firm's endorsement follows the recent approval of Dupixent (Dupi) as the first biologic treatment for Chronic Obstructive Pulmonary Disease (COPD) in both the United States and China.
The analyst highlighted the significance of the approval, noting that the drug's label does not include an eosinophil count cutoff of ≥300 cells/µL, which some market observers had expected. Instead, the medication is broadly indicated for patients with an eosinophilic phenotype. This broad indication mirrors the one granted by the European Union in June, where Dupixent was approved for use in patients with raised blood eosinophils, providing physicians with flexibility in prescribing the treatment.
The endorsement of Dupixent's broad label is seen as a potential driver for Regeneron's growth. The analyst from TD Cowen speculated that the COPD market could represent an opportunity worth $2-3 billion or more for the company. This outlook is based on the drug's newly expanded indication and its potential market reach.
Regeneron Pharmaceuticals, trading on NASDAQ:REGN, has been given a vote of confidence by the financial firm, which could influence investor sentiment. The firm's analysis suggests that the treatment's approval and broad label could play a crucial role in the company's future revenue streams.
Regeneron Pharmaceuticals received approval from China's National Medical Products Administration for Dupixent as a treatment for adults with chronic obstructive pulmonary disease. The company also reported a 12% increase in total revenues to $3.55 billion, with Dupixent global revenues surging by 29% to $3.56 billion. Amid legal disputes with rival firm Amgen (NASDAQ:AMGN) over its Eylea product, Morgan Stanley reiterated its Overweight rating on Regeneron, while Leerink Partners downgraded the company's stock from Outperform to Market Perform.
Goldman Sachs maintained its Buy rating, and Piper Sandler and Truist Securities also expressed positive and neutral stances, respectively. In addition, Regeneron adjusted its full-year 2024 financial guidance, now expecting a gross margin of approximately 89%.
InvestingPro Insights
The recent approval of Dupixent for COPD treatment aligns well with Regeneron's strong market position and financial performance. According to InvestingPro data, Regeneron boasts a substantial market capitalization of $114.8 billion, reflecting investor confidence in its growth potential. The company's revenue growth of 12.32% in the most recent quarter underscores its ability to capitalize on new market opportunities, such as the COPD treatment space.
InvestingPro Tips highlight Regeneron's status as a "prominent player in the Biotechnology industry," which is further reinforced by the Dupixent approval. The company's profitability over the last twelve months and analysts' predictions of continued profitability this year suggest that Regeneron is well-positioned to leverage the potential $2-3 billion COPD market opportunity mentioned in the article.
It's worth noting that while Regeneron's stock has taken a hit over the last week, with a 9.18% decline, it still maintains a strong return over the last five years. This long-term performance, coupled with management's aggressive share buybacks, indicates a commitment to shareholder value that could be further enhanced by Dupixent's expanded market reach.
For investors seeking more comprehensive insights, InvestingPro offers 11 additional tips for Regeneron, providing a deeper understanding of the company's financial health and market position.
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