Regeneron (REGN) is trading generally in line with Morgan Stanley's valuation, and further visibility on pipeline diversification will be important for investors, the firm said in a Wednesday note.
Progress with Eylea HD approvals and strong Dupixent sales have supported the stock's rebound this year, with Dupixent annualizing near $20 billion, the note added.
Morgan Stanley also said it is watching Eylea dynamics, including label enhancements and patient foundation support, as well as rising research and development spending as the company advances programs such as its F11 antibody.
Morgan Stanley downgraded Regeneron to equal-weight from overweight and maintained its $767 price target.
Shares of the company were down over 1% in recent Wednesday trading.
Price: 733.21, Change: -8.79, Percent Change: -1.18
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