Regeneron Pharmaceuticals' (REGN) "strong commercial" Q3 underscores the health of its core businesses, supported by continued growth in the Dupixent and Eylea franchises, RBC Capital Markets said in a note emailed Monday.
The company's "successful" defense against ophthalmology biosimilars and the multiple tools available to protect Dupixent should support revenue durability, while the Sanofi (SNY) payoff could provide greater benefits to the bottom line, according to the note.
The investment firm said, however, that the company's pipeline needs to produce clearer standout winners to drive long-term growth and further outperformance versus peers.
The firm said it sees underappreciated medium-term growth from Dupixent, pipeline and the Sanofi repayment, but said substantial near-term outperformance would likely require success of a multibillion-dollar pipeline drug, a Dupixent growth inflection, or greater clarity around the drug's life cycle.
RBC Capital Markets has a sector perform rating on Regeneron Pharmaceuticals and raised its price target to $913 from $810.
Regeneron Pharmaceuticals shares were up 4% in Monday trading.
Price: 965.08, Change: +37.19, Percent Change: +4.01
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