Investing.com — UBS downgraded Regeneron Pharmaceuticals Inc (NASDAQ: ) to “Neutral” from “Buy” given the uncertainty surrounding its key Eylea franchise. The brokerage reduced the price target to $738 from $1130.
The brokerage highlighted the limited adoption of high-dose Eylea amid growing brand and biosimilar competition. UBS projects a 14% decline in Eylea’s revenue for 2025, with further declines in 2026.
“We believe there is a disconnect between the market’s shorter-term focus on Eylea’s revenue versus REGN’s focus on building a sustainable long-term business,” the analyst said.
“Eylea’s high-dose adoptions are still limited at this stage, and with the backdrop of brand-name and biosimilar competition we don’t expect an inflection anytime soon.”
While Regeneron’s pipeline is promising in obesity and severe food allergies, UBS pointed out the long development times and the need for proof-of-concept data. The close look at these programs remains limited.
UBS noted that the stock’s valuation, trading at 15x earnings, reflects its innovation, but sees investors pivoting to peers with stronger short-term growth.
Regeneron shares are trading near pre-Eylea HD approval levels, which UBS considers fair value. The volatile macro environment adds to downside risks, the note warned.
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2025-01-16 16:18:00
