Dupilumab could be long-term growth driver
In October 2017, Regeneron Pharmaceuticals (REGN) and Sanofi (SNY) announced that their Phase 3 dupilumab study had met its primary and secondary endpoints. The study was conducted to evaluate the safety and efficacy of dupilumab for the treatment of individuals with severe steroid-dependent asthma.
In the study, at 24 weeks, when dupilumab was added to standard therapies, the use of maintenance OCS (oral corticosteroids) could be significantly reduced by an average of 70%, compared to ~40% with a placebo. At 24 weeks, despite reducing the use of OCS, patients receiving dupilumab had 59% fewer attacks.
Of the 26 analysts tracking Regeneron, six have recommended “strong buy,” six have recommended “buy,” 13 have recommended “hold,” and one has recommended “sell.”
On December 3, 2017, Regeneron had a 12-month target price of $462.83, which represents a 23.9% return over the next 12 months. The PowerShares QQQ Trust, Series 1 ETF (QQQ) has a ~0.54% exposure to Regeneron.
Of the 27 analysts tracking Vertex Pharmaceuticals (VRTX), ten have recommended “strong buy,” and 12 have recommended “buy.” On December 3, 2017, Vertex had a 12-month target price of $183.21, which represents a 30.1% return over the next 12 months.
Of the ten analysts tracking Exelixis (EXEL), one has recommended “strong buy,” and five have recommended “buy.” On December 3, 2017, Exelixis had a 12-month target price of $32.71, which represents a 16.3% return over the next 12 months.