JP Morgan Comments on Wet AMD Data for Regeneron
JP Morgan has published a research report on Regeneron Pharmaceuticals (NASDAQ: REGN) after wet AMD data was released on the company's Lucentis and Opththotech's Fovista.
In the report, JP Morgan writes, "Today, competitive data in the wet AMD (Age-related Macular Degeneration) space was released on the combination of Lucentis and Ophthotech's Fovista (aka E10030). In a large phase 2b study in 449 wet AMD patients, Lucentis + Fovista showed a 62% increase in visual outcome relative to Lucentis alone. Specifically, patients on the combo (1.5 mg Fovista) gained 10.6 letters versus 6.5 letters for Lucentis alone (p=0.019) in only 6 months, and importantly, visual outcome improved every month of the study. A statistically significant treatment effect on vision on top of a standard of care is very differentiated in the wet AMD space, in our view. Fovista (PDGF-inhibitor) could be synergistic with other anti-VEGF therapies (Avastin and Eylea), however there is a longer-term relationship with Roche in place and Fovista has only been tested in phase 1 and 2 studies with Roche's Lucentis. In our view, the phase 2 significantly de-risks a phase 3 trial and it highlights the potential for a new paradigm in wet AMD. Given concerns on 2012 Eylea expectations (JPMe: $550M; cons: ~$610M) and the risk of moderating Eylea demand, combined with longer-term concerns over the competitive landscape, we are maintaining our Neutral rating on REGN shares."
JP Morgan maintains its Neutral rating on Regeneron Pharmaceuticals, which is currently trading down $6.84 form yesterday's $127.85 closing price.
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