In a research report released Wednesday, Brean Capital analyst Jonathan Aschoff reiterated a Buy rating on Regeneron Pharmaceuticals Inc (NASDAQ:REGN) with a $525 price target, after the company’s received a positive 13-3 AdComm vote in favor of approval of Praluent, a PCSK9 cholesterol drug. However, the market doesn’t seem to be convinced as the stock is currently trading down 3.63% at $506.98.
Aschoff said, “We believe that both drugs will be approved and see upside, if anything, to our currently modeled $6,000 annual Praluent price. Eylea pricing has already demonstrated to us that Regeneron is diligent in assessing the market and determining appropriate drug pricing, and pricing will be key in marketing Praluent against Repatha, given how many millions of patients would be candidates for therapy. We believe that clear initial markets for Praluent will include those either intolerant, or suboptimally responsive, to statins, but that lower risk patients will comprise an increasing percentage of those treated as longerterm safety data are generated.”
“We also expect new statin treatment guidelines to potentially double the number of statin patients to 70 million, given how cheap ($40-$50 per year) generic statins have become, thereby allowing for the identification of many additional patients that are intolerant or resistant to statins.”, the analyst added.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jonathan Aschoff has a total average return of 10.4% and a 53.4% success rate. Aschoff has a 29.7% average return when recommending REGN, and is ranked #265 out of 3619 analysts.
Out of the 18 analysts polled by TipRanks, 12 rate Regeneron stock a Buy, while 6 rate the stock a Hold. With a potential downside of 14%, the stock’s consensus target price stands at $433.76.