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On Tuesday, Jefferies analyst Matthew Stanton adjusted the price target for Repligen (NASDAQ:RGEN), a bioprocessing company currently valued at $7.85 billion, reducing it to $914.00 from the previous $936.00. Despite the price target cut, Stanton reaffirmed a Buy rating on the stock. According to InvestingPro data, analyst targets for Repligen range from $140 to $225, with the stock currently trading at $139.40. Stanton’s commentary focused on several factors influencing the revised target, including challenges faced by Regeneron Pharmaceuticals Inc. (NASDAQ:REGN), which Repligen supports with its bioprocessing products. InvestingPro analysis shows Repligen maintains strong financial health with a current ratio of 8.41, indicating excellent liquidity to weather market challenges. The company’s moderate debt levels and strong cash position are reflected in its "GOOD" overall Financial Health score.
Regeneron entered the first quarter with a negative bias, as concerns loomed over its Eylea drug performance due to complications with its patient assistance organization, Good Days. The analyst anticipated that Eylea would miss its targets and that these issues would likely extend into the second quarter, affecting earnings. Additionally, there were concerns regarding Dupixent (Dupi), another of Regeneron’s products.
The bearish outlook was confirmed when three out of four concerns materialized, along with two additional negatives: a Complete Response Letter (CRL) for the high-dose Eylea Pre-Filled Syringe (PFS) and a miss on sales of Libtayo. Management at Regeneron believes that the issues highlighted in the CRL are related to a third-party component supplier and hopes for a swift resolution, though the timing remains uncertain.
Stanton noted that while the weakness in Eylea’s performance was anticipated, the PFS CRL posed a more significant issue. However, he also pointed out that Regeneron is nearing a valuation excluding Eylea and highlighted several potential catalysts in the second half of the year that could boost investor sentiment. These include treatments for COPD in former smokers, metastatic melanoma, and a C5 approach for generalized myasthenia gravis (gMG).
Despite the setbacks, Stanton emphasized that patience is essential, as Eylea’s dynamics are not expected to improve until patient assistance funding is restored. This could potentially happen before the August PDUFA dates for the high-dose Eylea. Stanton’s conservative revenue model for fiscal year 2025 is below consensus, with estimated revenues of $2.7 billion for low-dose (LD) Eylea and $1.36 billion for high-dose (HD) Eylea, compared to the consensus of $2.9 billion and $1.5 billion, respectively. The revised price target reflects these considerations.For investors seeking deeper insights, InvestingPro offers comprehensive analysis of Repligen’s financial health, revealing additional key metrics and 8 more ProTips. The platform’s exclusive Pro Research Report provides detailed valuation analysis and growth prospects, essential for making informed investment decisions in the bioprocessing sector.
In other recent news, Repligen Corporation announced its first-quarter 2025 financial results, reporting revenue of $169 million, which exceeded analyst expectations of $163.4 million. This marks a 10% increase year-over-year with an 11% rise in organic growth. The company’s adjusted earnings per share (EPS) also surpassed forecasts, coming in at $0.39 against an anticipated $0.35. Following the acquisition of 908 Devices, Repligen has raised its revenue outlook for 2025, now projecting between $695 million and $720 million, up from the previous forecast of $685 million to $710 million. JPMorgan analyst Rachel Vatnsdal adjusted Repligen’s stock price target to $190 from $200 but maintained an Overweight rating, reflecting confidence in the company’s strong position. The company also launched new products and expanded its bioprocessing portfolio, contributing to its solid performance. Despite these positive developments, Repligen’s stock experienced a decline in pre-market trading, which may be attributed to broader market trends. The company remains optimistic about its growth opportunities and anticipates stronger revenue in the latter half of 2025.
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