Movement Alert|Regeneron Pharmaceuticals Falls 3.2% in Pre-Market Trading, Multiple Banks Cut Target Prices Amid Q2 Earnings Warning

Market Focus07-16 16:41

On July 16, Regeneron Pharmaceuticals fell 3.2% in pre-market trading, trading at $656.9/share. Market sentiment remained under pressure as multiple investment banks recently lowered their price targets on the company, compounded by a Q2 earnings pre-announcement warning.

On the news front, the company disclosed in an SEC filing that it expects both GAAP and non-GAAP diluted EPS for Q2 to decrease by approximately $1 versus expectations, raising investor concerns ahead of the July 30 earnings release. HSBC slashed its price target to $800 from $990, while RBC Capital trimmed its target to $696 from $707, maintaining a Sector Perform rating. Earlier, Citigroup downgraded the stock to Neutral with a target of $700, and Leerink Partners cut its rating to Market Perform with a $641 target.

The overhang from the May fianlimab Phase 3 trial failure in melanoma — which missed statistical significance despite a numeric 5.1-month improvement in median progression-free survival — continues to weigh on sentiment regarding the company's oncology pipeline competitiveness.

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