Benzinga - by Vandana Singh, Benzinga Editor.
Thursday, Regeneron Pharmaceuticals Inc (NASDAQ: REGN) reported better-than-expected Q3 earnings.
Piper Sandler notes that the most significant short-term driver for Regeneron is the impending interim analysis of the Phase 3 NOTUS study in chronic obstructive pulmonary disorder, scheduled for Q4 2023.
Recent input from the FDA indicates that a favorable interim analysis of the NOTUS study, the analyst writes, combined with the positive Phase 3 BOREAS findings, could pave the way for an application submission.
Given the encouraging outcomes of the BOREAS study, Piper sees it reasonable to anticipate a successful interim analysis for NOTUS.
Analysts Dane Leone and Laura Prendergast upgraded from Market Perform 3 to Outperform, with a price target of $950.
A potential headwind to the upgrade is the expected added R&D expenditures into 2024 suppressing earnings, as management now expects mid-teens growth Y/Y of R&D expenses during 2024, along with incremental spending on sales and marketing.
Given the growing cash balance of REGN (estimated at $15 billion at year-end 2023), additional capital deployment to share repurchases, along with more aggressive M&A, is a reasonable expectation.
Overall, the analyst views the momentum of new product launches and capital flexibility as outweighing the expected headwinds from aflibercept biosimilars.
Price Action: REGN shares are down 0.39% at $815.63 on the last check Friday.
Latest Ratings for REGN
| Feb 2022 | Truist Securities | Maintains | Buy | |
| Feb 2022 | Oppenheimer | Maintains | Outperform | |
| Feb 2022 | Morgan Stanley | Maintains | Equal-Weight |
View the Latest Analyst Ratings
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