REGN

Morgan Stanley Downgrade: Morgan Stanley has downgraded Regeneron Pharmaceuticals from overweight to equal-weight, citing that the stock is fairly valued, while maintaining a price target of $767.

Recent Developments: The stock has seen a rebound due to Eylea HD's new indication for macular edema and FDA approval for monthly dosing, alongside strong sales of Dupixent.

Focus on Diversification: Analyst Terence Flynn emphasized the importance of Regeneron's ability to diversify away from Eylea and Dupixent, especially with impending biosimilar competition and loss of exclusivity concerns.

Upcoming Catalysts: Regeneron has several upcoming catalysts, including phase 3 melanoma and phase 2 lung cancer data, and is exploring further development of itepekimab in COPD and other conditions.

Collaboration with Tessera Therapeutics: Regeneron Pharmaceuticals has entered a collaboration with Tessera Therapeutics to develop TSRA-196, a gene editing therapy for Alpha-1 Antitrypsin Deficiency (AATD), sharing development costs and profits equally.

Regulatory Approvals and Product Performance: Regeneron has received FDA approval for Eylea HD and a label expansion for Libtayo, while facing challenges with declining Eylea sales due to competition, prompting the development of a higher dose version.

Financial Outlook and Stock Performance: Regeneron’s stock has increased by 5.3% year-to-date, but the decline in Eylea sales poses a significant challenge, despite positive developments in its oncology portfolio and partnerships.

Market Comparisons and Rankings: Regeneron holds a Zacks Rank #3 (Hold), while competitors like CorMedix and ANI Pharmaceuticals have better rankings and have shown significant stock performance improvements in recent months.

Collaboration Announcement: Regeneron Pharmaceuticals and Tessera Therapeutics have formed a global partnership to develop and commercialize TSRA-196, a gene therapy targeting alpha-1 antitrypsin deficiency (AATD), a rare genetic disorder affecting around 200,000 people in the U.S. and Europe.

Financial Terms: Tessera will receive $150 million from Regeneron, which includes an upfront payment and equity investment, along with potential milestone payments of $125 million as the project progresses.

Clinical Development: Tessera will lead the initial human trials for TSRA-196, while Regeneron will manage further global development and commercialization efforts, building on promising preclinical data.

Market Performance: Regeneron’s stock has seen a decline of 3.02%, trading at $756.40 at the time of the announcement, indicating a lag in market performance.