On Friday, BMO Capital Markets adjusted its outlook on Regeneron (NASDAQ:REGN) Pharmaceuticals shares, reducing the stock's price target to $1,190 from the previous $1,300, while still maintaining an Outperform rating. The revision followed Regeneron's recent earnings announcement, which, despite surpassing overall revenue and earnings expectations, revealed a shortfall in the high-dose version of Eylea, its key ophthalmology product.
Regeneron's management discussed the challenges facing its ophthalmology segment during the earnings call, citing the upcoming competition from Amgen (NASDAQ:AMGN)'s biosimilar products and the new prefilled syringe formulation of Roche's Vabysmo as potential headwinds. These factors are expected to exert pressure on the company's performance throughout the remainder of 2024 and into early 2025.
In light of these developments, BMO Capital has significantly lowered its revenue projections for Regeneron's ophthalmology franchise for the years 2024 and 2025. The firm's analyst pointed out that the competitive landscape is evolving and investors are concerned about the future trajectory of Regeneron's ophthalmology business leading up to 2025.
Despite the challenges, Regeneron's management remains confident in their product's market position. They emphasized the loyalty of Eylea patients and the potential for revenue growth in the second half of 2025 following the launch of the prefilled syringe version. The company believes that these factors will contribute to the resilience and growth of their ophthalmology business in the face of increasing competition.
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