Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN) has announced a license and collaboration agreement with Ultragenyx Pharmaceutical Inc. to develop, commercialize and distribute Evkeeza outside of the U.S.
Evkeeza is used to treat adults and adolescents aged 12 years and older with homozygous familial hypercholesterolemia (HoFH). The medicine was launched in the U.S. in February 2021.
As per the agreed terms, Regeneron is entitled to receive an upfront payment of $30 million and is eligible to receive up to $63 million in additional potential regulatory and sales milestones.
With this agreement, Ultragenyx will be responsible for commercializing the medicine outside of the U.S. and make payments to Regeneron based on net sales. It will also share certain costs for global trials led by Regeneron and also have the right to continue to clinically develop Evkeeza.
The Chief Scientific Officer and President of Regeneron, George D. Yancopoulos, M.D. & Ph.D., said, “With its focus on rare, debilitating genetic conditions, Ultragenyx is an ideal partner for us, and we look forward to working together to bring this much needed medicine to patients around the world.”
Analyst’s Take
Recently, Bank of America Securities downgraded the rating on Regeneron to Sell from Hold and lowered the price target to $575 from $675. The new price target implies 3.9% upside potential.
The analyst sees a challenging setup for Regeneron with revenue expected to grow slowly in the near to medium-term.
Based on 10 Buys, 5 Holds and 1 Sell, the stock has a Moderate Buy consensus rating. The average Regeneron price target of $689.79 implies 15.3% upside potential from current levels. Shares have gained 20% over the past year.
News Sentiment
News Sentiment for Regeneron is Neutral based on 10 articles over the past seven days. All articles have Bullish sentiment, compared to the sector average of 61%.
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