Analysts’ Recommendations for Regeneron and Peers in June 2017

On March 28, 2017, Regeneron Pharmaceuticals (REGN) and Sanofi’s (SNY) Dupixent secured regulatory approval from the FDA (U.S. Food & Drug Administration) as an injectable treatment for patients suffering from moderate-to-severe eczema, who have been less responsive or are ineligible for topical therapies. By April 29, 2017, Regeneron had 3,500 new prescriptions for Dupixent. That highlights the strong demand trends for this innovative therapy. Regeneron has also received a positive response from payers due to the company’s responsible pricing strategy. That’s expected to help reduce access constraints for Dupixent in the next few quarters.

On May 22, 2017, Regeneron and Sanofi’s Kevzara also received its first FDA approval as a treatment option for adults suffering from moderately to severely active rheumatoid arthritis who have demonstrated either an intolerance or inadequate response to disease-modifying antirheumatic drugs (or DMARDs).

With two key products targeting serious inflammatory conditions managing to secure FDA approval, Regeneron may have a transformative year in 2017. These developments could have a favorable impact on the company’s share prices as well as the shares of the iShares Nasdaq Biotechnology (IBB). Regeneron makes up about 8.1% of IBB’s total portfolio holdings.

Of the 25 analysts covering Regeneron Pharmaceuticals in June 2017, eight have rated the company a “strong buy,” and five have rated it a “buy.” Twelve have rated it a “hold,” and none have rated it a “sell” or “strong sell.” Approximately 52.0% of analysts have given the company some form of a “buy” recommendation.

Of the 24 analysts covering Amgen (AMGN) in June 2017, ~46.0% have rated it a “buy.” Approximately 58.0% of the 26 analysts covering Biogen Idec (BIIB) gave it “buy” recommendations in June 2017.

In the next part, we’ll look at Regeneron’s revenue growth trends.