This post was originally published on this site
Regeneron Pharmaceuticals (NASDAQ:REGN) has been downgraded to Underperform from Market Perform by Raymond James analysts on Wednesday.
In a note to clients, the analysts explained the downgrade is based on three points, including the company’s oncology portfolio likely struggling next year.
“1) the life cycle extension benefit of 8mg aflibercept (AFL) is likely over-estimated; 2) the oncology portfolio is likely to continue to struggle during 2023; and 3) upside to current expectations for Dupixent are likely limited given the outlook for COPD,” wrote the analysts.
The analysts added that Raymond James recently conducted a survey of the retinal specialist community, and the results support a view that “while 8mg AFL provides some defense against market erosion of EYLEA sales – even under a generous modeling scenario, it does not turn the tide for the structural decline of the franchise.”
“We were genuinely surprised by the Wall St reaction to the 8mg AFL data, given the known study design and CANDELA data, and think that commercial expectations may (unfortunately) reset lower over the next-twelve months,” the analysts said.
Regeneron shares are up over 19% in 2022.
