Analysts’ Recommendations for Regeneron in September 2017



Growth drivers

In 2017, Regeneron’s (REGN) flagship antivascular endothelial growth factor (or anti-VEGF) retinal disease drug, Eylea, has witnessed solid demand trends in the US and in international markets. Since its commercial launch in 2011, Eylea has been a key growth driver for Regeneron’s revenues due to rapid uptake by new patients as well as continuous label expansion of the drug. Regeneron has not increased the price of Eylea since 2011.

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Regeneron is currently involved in the commercial launch of its IL-4/IL-13 inhibitor, Dupixent, as a treatment option for moderate-to-severe atopic dermatitis (or AD). The company has seen steady growth in the number of new prescriptions written and filled, while there has been no indication of warehoused demand.

Regeneron and Sanofi (SNY) have been actively striving to create awareness for Dupixent among the physician and patient community. If the early positive response obtained from a physician, patient, and payer community for Dupixent translates into higher net product sales, it may have a favorable impact on Regeneron stock and on the iShares NASDAQ Biotechnology ETF (IBB). Regeneron makes up ~7.9% of IBB’s total portfolio holdings.

Analysts’ recommendations for Regeneron

Of the 26 analysts covering Regeneron Pharmaceuticals in September 2017, seven rated the stock a “strong buy,” six rated it as a “buy,” and 12 rated it as a “hold.” One analyst rated the company as a “strong sell.”

Of the 25 analysts covering Vertex Pharmaceuticals (VRTX) in September 2017, ~80% rated the company as a “buy.” Approximately 41% of the 27 analysts covering Sanofi gave it a “buy” recommendation, while 50% of the 24 analysts tracking Gilead Sciences (GILD) rated it a “buy.”

In the next article, we will discuss research programs for Regeneron’s Eylea in greater detail.


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