REGN Stock Price – Regeneron Pharmaceuticals Inc. Stock Quote (U.S.: Nasdaq)


Regeneron shares slip after Canaccord downgrades stock, slashes price target 32%

Shares of Regeneron Inc. slid Wednesday, after Canaccord downgraded the stock to hold from buy and slashed its price target by 32% to $356 from $522. Analysts led by John Newman said they were concerned about the company’s decision to no longer provide guidance for Eylea, a treatment for macular degeneration and other eye diseases, that has been a core revenue component for some time. “Also, unlike most biotech drugs, price increases for EYLEA are very difficult and unlikely given low-cost competition from off-label Avastin use,” Newman wrote in a note. “In addition, we are surprised at the lack of guidance since EYLEA has continued to grow well for a ~$4B drug in the US (+11% growth 2017 vs 2016).” At the same time, there is growing competition for the company’s Dupixent, a treatment for eczema in adults, said the note. “Most importantly, we believe Dupixent will need pediatric approval to unlock
the majority of revenue potential, which may not come until 2021. We estimate the pediatric market makes up ~2/3 of the market,” said the note. Canaccord is also expecting Eylea to face competition from Roche’s RG7716, a treatment for diabetic macular edema, and Novartis’ brolucizumab, a treatment for wet age-related macular degeneration. Regeneron shares were down 0.6% but are down 14% in the last 12 months, while the S&P 500 has gained 15%.

Source : MTV