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- Morgan Stanley and Jefferies upgraded Regeneron (NASDAQ:REGN) after the company reported that its best-selling eye medication, Eylea, at a higher dose, achieved noninferiority to the standard regimen in two pivotal trials.
- Morgan Stanley analyst Matthew Harrison opines that the data removes a key overhang related to Eylea tail risk and predicts high dose regimen could become the “agent of choice for front line patients.”
- In addition, the firm projects that REGN’s allergic disease drug Dupixent could achieve more than $20B in peak sales ahead of the consensus and notes that the advancements of the company’s “oncology pipeline can now provide the next leg of growth.”
- The analyst cites significant optionality with REGN’s sizable cash position as he upgrades the stock to Overweight from Equal Weight and raises the price target to $851 from $625 per share.
- Arguing that overall data for high dose Eylea exceeded its expectations as well as Buy-side projections for the 16-week dosing regimen, Jefferies upgraded REGN to Hold from Underperform and increased the price target to $675 from $536 per share.
- Meanwhile, Barclays raised the REGN price target to $815 from $735 per share in reaction to the latest Eylea data, which added more than ~19% to the company’s valuation on Thursday.
- Read: REGN and partner Sanofi (SNY) (OTCPK:SNYNF) announced two-year data for Dupixent in children aged six to 11 years with asthma.