UBS 'Looking Elsewhere,' Says To Sell Regeneron

In a report published Thursday, UBS analyst Matthew Roden downgraded the rating on

from Neutral to Sell, citing the surge in shares, while maintaining a price target of $500. Regeneron's shares have been the best performer in the large cap biotech segment this year. The outperformance has been driven by the company's opportunities with Eylea, Praluent and pipeline programs like dupilumab. The markets have also appreciated the strategic value and the benefits of Regeneron's collaboration with

. Analyst Matthew Roden believes that the appreciation in Regeneron shares was "disconnected from peers." "We appreciate the long term value-creating potential of Regeneron's business, and we are supportive of management and the business model. However, we also see the current price of REGN shares as a less attractive entry point relative to peers," Roden added. In the report UBS noted, "Praluent is likely to be approved with a label that is broader than the FDA Advisory Committee recommended. We expect it to be similar to the positive CHMP opinion for Repatha. However, we think most REGN and AMGN bulls expect a broader label already, suggesting limited upside on the event." Regeneron's long-term outlook looks favorable with Eylea expected to grow with geographic and label expansion. The company's key pipeline programs alirocumab, sarilumab and dupilumab could be potential blockbusters or may face competition from other similar drugs. "We wait for a more attractive entry," the report stated.