Market Overview

Canaccord Slices Regeneron Price Target 32% On Eylea, Dupixent Challenges

Canaccord Slices Regeneron Price Target 32% On Eylea, Dupixent Challenges
Related REGN
The Daily Biotech Pulse: Regulatory Roadblock For Immunomedics, AdCom Split On Lexicon's Diabetes Drug
The Daily Biotech Pulse: Opko Settles With SEC, Obalon Inks Financing Deals, Harpoon Files For IPO
Regeneron Likely To Outperform In 2019 (Seeking Alpha)

Regeneron Pharmaceuticals Inc (NASDAQ: REGN) shares fell 31 percent over the last six months, and the company's headwinds appear unending.

The biotech firm lost an advocate Wednesday on the basis of a rough outlook for Eylea and Dupixent treatments.

The Rating

Canaccord Genuity analyst John Newman downgraded Regeneron from Buy to Hold and cut the price target from $522 to $356.

The Thesis

Regeneron’s Eylea — seen as a core revenue driver — may face competition from Novartis AG (ADR) (NYSE: NVS)’s brolucizumab and Roche’s RG7716 within the next two years, and this threat compounds concerns over discontinued guidance, Newman said in a Wednesday note. (See the analyst's track record here.) 

“Also, unlike most biotech drugs, price increases for EYLEA are very difficult and unlikely given low-cost competition from off-label Avastin use,” Newman said. “In addition, we are surprised at the lack of guidance since EYLEA has continued to grow well for a $4-billion drug in the U.S."

At the same time, the analyst anticipates sales-stunting challenges for Dupixent. Regulatory approval for pediatric indications, which comprise two-thirds of the market, may be delayed until 2021 and compound competition from the likes of Abbvie Inc (NYSE: ABBV), whose asthma treatment could alter Dupixent’s peak revenue estimates.

Price Action

At the time of publication, Regeneron shares were down 0.66 percent at $320.92. 

Related Links:

Analyst: Regeneron Is Undervalued By The Street

BofA: The Biotech Sector Is In A 'Perfect Storm' For M&A

Latest Ratings for REGN

Jan 2019GuggenheimUpgradesNeutralBuy
Dec 2018Goldman SachsUpgradesNeutralBuy
Oct 2018Morgan StanleyMaintainsEqual-WeightEqual-Weight

View More Analyst Ratings for REGN
View the Latest Analyst Ratings

Posted-In: Canaccord Genuity Dupixent EYLEA John NewmanAnalyst Color Downgrades Price Target Analyst Ratings Best of Benzinga


Related Articles (NVS + ABBV)

View Comments and Join the Discussion!

Latest Ratings

CNPRBC CapitalUpgrades34.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Alphabet Shares Rise On Google Pay Debut: Should Apple Be Worried?

Whirlpool To Gain From Growth Initiatives, But Risks Persist