By Sam Boughedda
Regeneron (NASDAQ:REGN) shares jumped over 20% after the company said on Thursday that its anti-blindness treatment Eylea, jointly developed with Bayer (OTC:BAYRY), has met primary endpoints in two key trials.
Two late-stage trials demonstrated that Eylea, which is usually given in doses of two milligrams every eight weeks, was just as effective when given at eight milligrams at longer dosing regimens.
Reacting to the news, a BMO Capital Markets analyst said the results are the "best case scenario for Regeneron and provide a decisive answer to Roche's faricimab."
The analyst, who has an Outperform rating and $788 price target on Regeneron, reiterated the stock as a top pick. He added: "These better than expected efficacy results combined with consistent safety will allow for effective lifecycle management as the anti-VEGF market becomes more commoditized (especially post the launch fo Eylea biosimilars in 2024). Speaking with the company they plan to submit ASAP YE2022/early 2023 with the potential to use their priority review voucher."
In addition, a Truist Securities analyst said the firm sees "a key overhang removed with results."
"We believe high-dose Eylea could keep competitors with less frequent dosing and biosimilars at bay," he added. The Truist analyst raised the firm's price target on the stock to $790 from $718, maintaining a Buy rating.