Here's Why This Analyst Cut Price Target On Regeneron - Regeneron Pharmaceuticals (NASDAQ:REGN)

RBC Capital Markets has lowered Regeneron Pharmaceuticals Inc's price target REGN from $679 to $647 and maintained a Sector Perform rating.
Checks suggest that Dupixent (dupilumab) growth/durability should remain strong in new and existing indications, maintaining positive sentiment.
The analysts also believe that the concerns about near-term Eylea competition may be overblown. However, high-dose data, expected in 2H 2022, would need to be impressive to defend fully vs. biosimilars.
According to RBC, Phase 2 data showed consistent signals of anatomical and visual acuity efficacy advantages for 8mg vs. 2mg Eylea without any notable safety liability.
But KOL feedback suggests these differences may be subtle, and physicians are likely already using Eylea 2mg less frequently than the Q8W being tested in the Phase 3 control arm. Also, safety has yet been entirely de-risked.
This gives a 70% probability of success.
Also Read: FDA Extends Review Period For Regeneron's COVID-19 Antibody Therapy.
Ultimately, RBC forecasts $6.2 billion in 2022 branded U.S. Eyelea sales (vs. $6.1 billion consensus), declining to a probability-blended $4.2 billion by 2026 (vs. $4.7 billion consensus).
RBC says that the R&D engine is robust operating leverage that should enable meaningful EPS pull-through on the success of evolving cancer/genetics pipeline long-term.
Still, it remains unclear whether these assets or COVID-19 antibody revival can provide upward inflection.
Price Action: REGN shares are down 1.44% at $649.63 during the market session on the last check Monday.

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