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Piper Jaffray Reiterates an 'Overweight' on Regeneron Pharmaceuticals (REGN); Raises Price Target

July 8, 2009 9:12 AM EDT
REGN Hot Sheet
Rating Summary:
    9 Buy, 9 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 24 | Down: 11 | New: 36
Piper Jaffray & Co. reiterates an Overweight rating on Regeneron Pharmaceuticals (Nasdaq: REGN), raises price target from $19 to $22.

Piper analyst says, "Following the approval of Novartis' (NYSE: NVS) Ilaris (canakinumab) in Cryopyrin-Associated Periodic Syndromes (CAPS), there are now three anti-IL-1 therapies on the market: Regeneron's Arcalyst and Novartis' Ilaris both approved for CAPS and Amgen's (Nasdaq: AMGN) Kineret approved for rheumatoid arthritis (RA). We believe Ilaris poses a minimal near-term threat to U.S. Arcalyst sales...Importantly, Regeneron stands to profit from the potential success of Ilaris as the company is entitled to a tiered royalty on Ilaris sales that starts at 4% and tops out at 15% when sales reach $1.5 billion."

"We continue to recommend purchase of REGN shares ahead of significant clinical data flow in 2010 including results from three Phase III Aflibercept cancer trials, as well as pivotal data for VEGF Trap-Eye in wet Age-Related Macular Degeneration (AMD). These drugs may prove competitive to Genentech's (NYSE: DNA) Avastin and Lucentis."

To see more analyst ratings on REGN Click Here.

Regeneron Pharmaceuticals, Inc. (Regeneron) is a biopharmaceutical company that discovers, develops and commercializes pharmaceutical products for the treatment of serious medical conditions.

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