Regeneron upgraded at Cowen on potential of high dose Eylea
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Regeneron (NASDAQ:REGN) shares edged higher pre-market Monday after Cowen upgraded the biotech to Outperform from Market Perform citing the long-term potential of the eye disease therapy Eylea the company markets with Bayer AG (OTCPK:BAYZF) (OTCPK:BAYRY).
Regeneron (REGN) shares surged in September after the company said that a high-dose version of the blockbuster therapy showed noninferiority to the standard 2mg dose with less frequent administration.
The high dose âEylea data has altered the trajectory of Regeneron,â the analyst Tyler Van Buren wrote, raising his price target to $875 from $775 per share.
Citing a medical expert, Buren notes that Vabysmo, a rival eye injection from Roche (OTCQX:RHHBY) (OTCQX:RHHBF), âhas not delivered the âwow factorââ and offers only about one additional week of durability compared to standard Eylea, âwhich isnât a big difference.â
The analyst also argues this explains the modest Vabysmo uptake and why its use is limited to the most challenging stages of the disease.
The expert also suggested that âHD Eylea appears to be an incremental improvement on top of Vabysmo,â which, according to the analyst, indicates a recent swing in favor of high-dose Eylea. 
Expecting a rapid market shift from standard dose to high dose Eylea, the analyst shrugs off the impact of knockoffs and argues that long-term Street forecasts for the injection âare too low.â
Additionally, Buren points to Phase 3 results expected in H1 2023 for the monoclonal antibody Dupixent Regeneron (REGN) develops with Sanofi (SNY) for chronic obstructive pulmonary disease (COPD) with evidence of type 2 inflammation.
Despite over $18B in sales projected for the atopic dermatitis therapy before its EU patent expiry in 2029, the form notes that the âupcoming COPD readout could ensure that it breaks $20B.â
In November, Seeking Alpha contributor Edmund Ingham with a Hold rating on Regeneron (REGN), cut his Eylea revenue contribution to the company.