In a research report issued today, Brean Capital analyst Jonathan Aschoff offered some commentary on Regeneron Pharmaceuticals Inc (NASDAQ:REGN), following the news that Regeneron’s Praluent, the first PCSK9 inhibitor, received FDA approval for high LDL cholesterol in adult patients who are either HeFH or have CV disease. Aschoff rates REGN a Buy with a price target of $525.
Aschoff wrote, “Although Praluent may be the lowest priced monoclonal antibody therapy on an annualized basis, economic headwinds exist in the form of Repatha competition and the substantially higher cost of antibodies versus generic and branded statins. Considering discounts and rebates, actual costs to patients are expected to be considerably lower, at least initially until significant CV outcomes data argue otherwise in 2017.”
“We therefore are modeling a $10,000 net annual Praluent price. Praluent will initially target adults with heterozygous familial hypercholesterolemia or clinical atherosclerotic cardiovascular disease who require additional lowering of LDL cholesterol and for whom maximally tolerated statin doses are insufficient. We believe that lower CV risk patients will comprise an increasing percentage of those treated as longer term CV outcomes data are generated. We are currently modeling 3.6 million patients for Praluent’s approved label.”, the analyst continued.
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 13.1% and a 54.7% success rate. Aschoff has a 30.1% average return when recommending REGN, and is ranked #158 out of 3712 analysts.