Buy REGN Ahead Of VEGF Trap-Eye Data In December

PiperJaffray says it is a buyer of Regeneron Pharmaceuticals REGN ahead of pivotal VEGF Trap-Eye data in Age-related Macular Degeneration (AMD) in December. If approved, we believe VEGF Trap-Eye could be a game changer for Regeneron pushing the company to profitability in 2012. Regeneron retains U.S. rights where there are >200,000 new cases of AMD each year. PiperJaffray conservatively forecasts sales of $710 million by 2015 with only 25% penetration. If VEGF Trap-Eye proves superior to Lucentis on either metric, we could see more rapid uptake and increased peak penetration. Regeneron is partnered with Bayer overseas and receives 50% of the profits providing further upside to its revenue forecast and price target. Including $165 million from Astellas, Regeneron holds proforma cash of $545 million and no debt. Trading at a market cap of $2.1 billion and an enterprise value of $1.6 billion, Piper sees shares of REGN as attractive. PiperJaffray reiterates its Overweight rating on REGN and a $37 price target. Beat the market consistently by receiving reliable options market information from the Options Whisper!