We recently maintained our Neutral recommendation on
). Our target price is $195.00 per share.
Why the Reiteration?
Regeneron reported higher-than-expected earnings in the fourth
quarter of 2012, on the back of strong sales of its eye-drug
Eylea. The drug has performed well since its US launch in late
2011 for treating patients suffering from neovascular form of
age-related macular degeneration (wet AMD). The European approval
of the drug for the same indication came in Nov 2012.
Sales of Eylea in the US came in at $838 million in 2012, above
the company's projected range of $790-$815 million. Encouraged by
the strong performance, the company forecast Eylea sales to
increase 50% in 2013 over 2012 levels.
In Sep 2012, the US Food and Drug Administration (FDA) approved
the label expansion of Eylea into the macular edema following
central retinal vein occlusion (CRVO) indication.
Zaltrap, co-developed with
), is another promising drug in Regeneron's product portfolio.
Zaltrap gained FDA approval in early Aug 2012 for treating
previously treated patients suffering from metastatic colorectal
cancer. As per Sanofi, sales of Zaltrap were $23 million in the
fourth quarter of 2012.
The EU approval of Zaltrap for the same indication in Feb 2013 is
another positive for Regeneron. However, we believe that the
current price reflects all these positives. Hence, we retain our
Neutral recommendation on the stock.
Other Stocks to Consider
The stock carries a Zacks Rank #3 (Hold). Biopharma stocks which
appear to be more favorably placed include
). While Athersys carries a Zacks Rank #1 (Strong Buy), Celgene
carries a Zacks Rank #2 (Buy). Both these stocks are worth
considering in the biopharma space.
ATHERSYS INC (ATHX): Free Stock Analysis
CELGENE CORP (CELG): Free Stock Analysis
REGENERON PHARM (REGN): Free Stock Analysis
SANOFI-AVENTIS (SNY): Free Stock Analysis
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