Regeneron's Price Target Cut On Dim Prospects For Its Flagship Eye Product

  • SVB has cut the price target from $738 to $630 and downgraded from Outperform to Market Perform to reflect Regeneron Pharmaceutical Inc's REGN acquisition of Libtayo ex-US rights from Sanofi SA SNY and more conservative long-term Eylea forecasts. 
  • SVB Leerink said it is moving to the sidelines because of low confidence that both (Q12W and Q16W) high dose Eylea arms will succeed in the upcoming phase 3 readouts and anticipated competitive pressure from Roche Holding AG's RHHBY Vabysmo. 
  • Data is expected in Fall 2022.
  • The analysts believe the high dose will demonstrate non-inferiority in the Q12W arm vs. the 2mg Eylea control Q8W arm. Still, they lack conviction that Q16W arms will show non-inferiority since many patients are likely to require more frequent dosing. 
  • "We believe Regeneron must extend the Eylea franchise...If the Eylea 9,254,338 patent is not upheld by the PTAB (IPR hearing August 10, the decision by November 10), Eylea will likely face US loss of exclusivity (LOE) in May 2024. It is also set to face EU LOE in 2025," SVB added.
  • Price Action: REGN shares are lower by 0.38% at $583.87 during the market session on the last check Monday.
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