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On Thursday, RBC Capital Markets sustained its positive stance on Regeneron (NASDAQ:REGN) Pharmaceuticals, Inc. (NASDAQ: REGN), with analyst Brian Abrahams reiterating an Outperform rating and a price target of $943.00. According to InvestingPro data, the company currently trades at an attractive P/E ratio of 14.2x, suggesting potential upside based on its Fair Value estimates. The endorsement comes as Regeneron anticipates phase III study results for itepekimab, a drug candidate for the treatment of chronic obstructive pulmonary disease (COPD).
Abrahams expressed optimism regarding the potential of itepekimab to significantly reduce COPD exacerbations, based on an extensive review of preclinical and clinical data for COPD biologics. He anticipates that positive study outcomes could unlock a substantial market opportunity, estimating an unadjusted global peak revenue of $6 billion and a probability of success (PoS)-adjusted revenue of over $3.5 billion, even with conservative penetration estimates.
The analyst’s confidence is underpinned by the belief that there is a 65% chance of a 5-15% upside for Regeneron’s stock as a result of the forthcoming itepekimab data. He also suggests that successful outcomes from the itepekimab studies, along with other pipeline results, could shift investor focus away from concerns over the erosion of Eylea, another of Regeneron’s products. This shift could potentially lead to an appreciation in stock value, aligning it more closely with RBC Capital’s estimated discounted cash flow (DCF)-based fair value.
Regeneron Pharmaceuticals, Inc. is a biotechnology company that discovers, invents, develops, manufactures, and commercializes medicines for the treatment of serious medical conditions. With a market capitalization of $63 billion and annual revenue of $14.1 billion, the company maintains strong financial health, earning a "GREAT" rating from InvestingPro. The company’s product Eylea has been a significant contributor to its revenue, and the potential success of itepekimab could represent a new growth avenue for Regeneron. Notable InvestingPro Tips highlight the company’s strong balance sheet, with more cash than debt and sufficient liquidity to cover short-term obligations.
The market is closely monitoring Regeneron as it approaches the release of its phase III study results for itepekimab. Positive data could have a notable impact on the company’s future revenue streams and its position in the biopharmaceutical industry. For comprehensive analysis and additional insights, including 6 more exclusive ProTips and detailed financial metrics, investors can access the full Regeneron research report on InvestingPro, part of their coverage of 1,400+ top US stocks.
In other recent news, Regeneron Pharmaceuticals has been named the successful bidder for 23andMe’s assets in a bankruptcy auction, with a purchase price of $256 million. This acquisition is expected to enhance Regeneron’s genetics-guided research and drug development capabilities. RBC Capital Markets has maintained an Outperform rating on Regeneron, setting a price target of $943, citing the potential of the company’s pipeline assets. Meanwhile, Citi has upgraded Regeneron from Neutral to Buy, raising the price target to $700, based on the company’s strong pipeline in melanoma and COPD. In a significant legal development, a federal jury ordered Amgen (NASDAQ:AMGN) to pay Regeneron $406.8 million in an antitrust case concerning sales practices for cholesterol medication. The jury found Amgen liable for using bundled rebates to limit competition, affecting Regeneron’s drug, Praluent. These recent developments underscore Regeneron’s strategic moves in acquisitions and legal victories, along with positive analyst outlooks.
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