On Monday, Truist Securities confirmed its positive stance on Regeneron (NASDAQ:REGN) Pharmaceuticals, maintaining a Buy rating and a $1,004.00 price target for the company's stock. The stock, currently trading near its 52-week low, appears undervalued according to InvestingPro analysis. Despite a slight dip in Regeneron shares this morning, which saw a decrease of approximately 1.2% compared to the SP50's 0.74% fall, Truist Securities remains optimistic about the pharmaceutical company's prospects, aligned with the strong analyst consensus rating of 1.8.
The analyst at Truist Securities highlighted several points underpinning their recommendation. With a healthy P/E ratio of 15.8 and overall revenue growth of 5.7% in the last twelve months, the company shows strong fundamentals. They noted that Regeneron's Eylea franchise experienced a year-over-year growth of 1%. Eylea, which is anticipated to generate $6 billion in revenue for 2024, continues to hold its position as the market leader. Additionally, there has been an increasing adoption of the high-dose Eylea, although the management acknowledged the persistence of the 2mg dose preference among users.
Furthermore, Truist Securities expects the momentum of Dupixent, another of Regeneron's products, to carry on. The company's strong financial health, earning a "GOOD" rating from InvestingPro, supports its growth initiatives. The Prescription Drug User Fee Act (PDUFA) date for Dupixent's use in chronic spontaneous urticaria (CSU) is set for April 18th, which could potentially expand its applications. Get access to 8 more exclusive InvestingPro Tips and comprehensive financial analysis with a subscription.
The analyst also pointed out the promising future of Regeneron's pipeline, which the company claims has a market potential of $220 billion. Notably, Regeneron's factor XI assets are slated to enter pivotal trials within the year. This development is part of what Truist Securities believes will be the emergence of a robust pipeline for the company.
In summary, Truist Securities reiterated its Buy rating on Regeneron Pharmaceuticals, expressing confidence in the company's current product performance and future pipeline potential. The maintained price target of $1,004.00 reflects the firm's continued endorsement of Regeneron's stock amidst market movements.
In other recent news, Regeneron Pharmaceuticals reported lower-than-expected sales for a higher dose of its flagship eye drug, Eylea, causing a decline in stock value. The sales in the fourth quarter of 2024 were significantly below analyst expectations, with the drug generating US net product sales of $305 million, compared to the $457 million that had been estimated. Chris Schott (ETR:1SXP) of JPMorgan maintained an overweight rating on Regeneron, commenting that Eylea HD sales have effectively plateaued.
In more positive developments, Regeneron reported successful outcomes from the Phase 3 C-POST trial evaluating the efficacy of the immunotherapy drug Libtayo in patients with high-risk cutaneous squamous cell carcinoma. The trial demonstrated a 68% reduction in the risk of disease recurrence or death when compared to a placebo. The results are expected to be presented at a medical conference and submitted to the U.S. Food and Drug Administration in the first half of 2025.
Oppenheimer analysts adjusted their price target for Regeneron to $950 from $1,000, maintaining an Outperform rating. RBC Capital Markets also adjusted its price target, decreasing it from $1,215.00 to $1,184.00, while maintaining an Outperform rating. Both firms highlighted the competitive strength of Regeneron's Eylea and the potential for EyleaHD to contribute to the company's growth. These are the recent developments for Regeneron Pharmaceuticals.
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