Canaccord Reiterates Buy on Regeneron Pharmaceuticals Inc (REGN) Following New Collaboration with Sanofi
In a research report released Tuesday, Canaccord analyst John Newman reiterated a Buy rating on Regeneron Pharmaceuticals Inc (NASDAQ:REGN) with a price target of $600, following the news that Sanofi SA (ADR) (NYSE:SNY) signed a third major collaboration with Regeneron for the development of immuno-oncology assets. SNY will pay REGN an upfront payment of $640 million with an initial investment of up to $2.17 billion.
Newman wrote, “Regeneron and Sanofi will collaborate on REGN2810, a PD-1 inhibitor currently in Phase 1, which we believe carries lower development risk but a more challenging commercial outlook. Regeneron has been able to develop improved versions of existing drugs with known mechanisms of action (EYLEA, sarilumab), but the PD-1 field is crowded, with Bristol and Merck having approved drugs, and Roche, AstraZeneca, and Pfizer/Merck KGaA working on pipeline assets. To date, REGN2810 has shown data in an MC38 colorectal cancer model in mice, and is currently in Phase 1 for solid tumors.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst John Newman has a total average return of 14.1% and a 59.4% success rate. Newman has a 20.9% average return when recommending REGN, and is ranked #185 out of 3717 analysts.
Out of the 18 analysts polled by TipRanks, 12 rate Regeneron Pharmaceuticals stock a Buy, while 6 rate the stock a Hold. Regeneron shares rose 1.81% to $549.83 as of 12:07 PM EDT.