Regeneron (REGN): Reluctance To Discuss Pricing Causes a PT Revision - Chardan

November 7, 2016 7:37 AM EST
Get Alerts REGN Hot Sheet
Price: $371.50 -0.32%

Rating Summary:
    19 Buy, 18 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 28 | Down: 20 | New: 17
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Chardan Capital Markets analyst, Gbola Amusa, reiterated his Sell rating on shares of Regeneron Pharma (NASDAQ: REGN) and cut the price target to $300 from $325 over fears that the company's reluctance to discuss drug pricing on the 3Q16 call signals negatively for price pressures, particularly on Eylea (wet AMD, DME, RVO).

On Friday morning, Regeneron reported and held a conference call to discuss financial and operating results for 3Q16. The company began the call by stating, "We know that our industry has faced many important questions regarding pricing of drugs. This is not the forum to discuss the complex issue of drug pricing...”

The analyst stated "In our experience in listening to hundreds of earnings conference calls in biopharmaceuticals, we do not recall a big cap company ever taking the issue of pricing off the table. We believe the quoted commentary from the 3Q16 conference call and the sub-optimal discussion of pricing topics during the Q&A session open the risk that pricing dynamics for Regeneron are either unknown (increasing risks in the stock) or are perhaps so negative that
consensus estimates would be downwardly revised if a robust discussion were to have occurred."

For an analyst ratings summary and ratings history on Regeneron Pharma click here. For more ratings news on Regeneron Pharma click here.

Shares of Regeneron Pharma closed at $341.39 yesterday.



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Analyst Comments, Analyst EPS Change, Analyst PT Change, Earnings

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Earnings, Chardan Capital Markets, Gbola Amusa

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