Market Overview

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

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

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

Aug 2020Credit SuisseMaintainsOutperform
Aug 2020BMO CapitalMaintainsMarket Perform
Aug 2020Morgan StanleyMaintainsEqual-Weight

View More Analyst Ratings for REGN
View the Latest Analyst Ratings


Related Articles (REGN)

View Comments and Join the Discussion!

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

Latest Ratings

ACCDCredit SuisseMaintains40.0
TPRCredit SuisseMaintains17.0
STSACredit SuisseMaintains33.0
AZEKCredit SuisseMaintains46.0
FTCHCredit SuisseMaintains35.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at