Regeneron CEO And CFO Met With Citi: Here Are The Takeaways

Citi’s Robyn Karnauskas mentioned three key takeaways after meeting with Regeneron Pharmaceuticals Inc REGN management - CEO Leonard Schleifer, CFO Bob Landry and Director IR Manisha Narasimhan. These were:

1. Injunction decision could come by late fall, while company believes injunction seemed unlikely
2. On Praluent outcomes, investors should focus on proof of LDL hypothesis
3. Regeneron continues to see further innovation in the store

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Injunction Decision

The Judge could give final decision in 2-3 months, analyst Robyn Karnauskas said. Regeneron believes injunction is unlikely since the Judge had mentioned the following favorable points:

• Testimony on low dose option
• Hard to argue irreparable harm given small sales at this point
• Lack of public interest in keeping a heath product off the markets

Proving LDL Hypothesis

“The hypothesis suggests linear relation b/w absolute LDL decrease and CV risk reduction. If outcome trial proves this linear relationship, the company noted it will be easier to market the drug in real world among target pts who have even higher LDL levels than outcome trials,” Karnauskas wrote. Regeneron expressed confidence in proving this, based on the statin-like mechanism of PCSK9.

Karnauskas reiterated a Buy rating for the company, with a price target of $470.