Regeneron poised to benefit from bounce-back of eye drug

By Liz Moyer

Investing.com -- Regeneron Pharmaceuticals Inc (NASDAQ:REGN) could benefit from a bounce-back in share for its drug to treat macular degeneration, according to analysts at Piper Sandler.

The analysts rate the stock overweight with an $800 price target. Regeneron shares were down 0.2% on Wednesday but up 4.3% so far this year. The price target implies an upside of more than 6%.

“We continue to recommend purchase of REGN shares and continue to model US Eylea revenue of $1,577M, $1,659M, $1,672M, and $1,668M for Q123-Q423, respectively,” the analysts said in a research note on Wednesday. 

Fourth quarter U.S. Eylea revenue of $1.5 billion missed consensus by $150 million, they said in the note, but since then the analysts have heard from investors that they are skeptical about the cause being attributed to a temporary shift to another off-label drug.

The analysts point to a Spherix survey in early February of 75 ophthalmologists that indicates not only is Eylea share bouncing back, “it is approaching all-time highs.”

“Bottom line – we think this feedback bodes well for a Q123 Eylea recovery and stable numbers at least until the high-dose launch later this year,” the analysts said.

The company points to the successful trial of its 8-mg formulation. It expects approval to come this year.