Regeneron upgraded at JPMorgan on upcoming catalysts
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Regeneron (NASDAQ:REGN) shares trended higher pre-market Friday after JPMorgan upgraded the stock to Overweight from Neutral, noting several key catalysts in 2023, including the upcoming launch of high-dose Eylea.
Citing the companyâs early earnings results, JPMorgan analyst Chris Schott noted that the companyâs Q4 2022 U.S. Eylea results fell short of expectations amid launch of Rocheâs (OTCQX:RHHBY) (OTCQX:RHHBF) rival eye disease therapy Vabysmo and closing of a copay assistance fund.
ââ¦.we see these concerns as short-term in nature as we expect the launch of high-dose Eylea to represent a far more important driver for REGN shares,â the analyst added, maintaining the $850 per share target on Regeneron (REGN).
The company shares surged in September after announcing that an 8mg dose of the blockbuster therapy developed with German pharma Bayer AG (OTCPK:BAYZF) (OTCPK:BAYRY) showed noninferiority to the standard 2mg dose with less frequent administration.
Additionally, Schott highlighted the companyâs atopic dermatitis (AD) therapy Dupixent, expecting biologic penetration in the AD market to more than double over the next five years despite rising competition.
JPMorgan also pointed to Regeneronâs (REGN) prostate cancer candidate PSMAxCD28 arguing that despite small patient numbers, the company has indicated âimpressive anti-tumor activityâ for the bispecific antibody.
ââ¦if this profile holds up with additional patient data, we believe this product could represent a meaningful value driver for shares,â Schott wrote.
Read: Reiterating the Buy rating on Regeneron (REGN), Seeking Alpha contributor ONeil Trader noted âclinical de-risking of high-dose Eyleaâ as a reason for the companyâs improved long-term outlook.