Canaccord Genuity Raises PT of Regeneron Pharmaceuticals (REGN) to $525 from $460

Canaccord Genuity is reiterating their Buy rating on Regeneron Pharmaceuticals (NASDAQ: REGN), as well as raising the price target to $525 (from $460), after REGN posted strong 1Q15 sales. REGN reported sales of $541M, beating out both Street and Canaccord estimates of $527M and $522M. REGN guides are being conservative, estimating a gradual initial Praulent uptake.

Canaccord Genuity analyst, John Newman, commented on (REGN) saying, "The growth was driven primarily by share gains from Avastin and Lucentis, where Eylea market share has now surpassed that of Lucentis in the US. Additionally, the growth of Eylea share is also related to the positive physician reaction from the NIH sponsored Protocol T results that was recently published in NEJM, which demonstrated superior mean visual acuity letter score vs. Avastin and Lucentis in DME patients. The company increased 2015 guidance for Eylea sales to $2.26 - 2.34M from $2.17 - 2.26M, which we view as very encouraging."

Newman also added, "The company remained conservative on initial Praulent launch, stating that the reimbursement environment may prove to be complex given the high scrutiny from current payors. REGN believes it will take several months for commercial and government payors to conduct formulary reviews and make reimbursement coverage decisions prior to processing patient claims. This is in line with our previous note where we believe new cholesterol medications, regardless of reimbursement issues or not, will generally take more time to ramp (Ezetimibe QTQ market share growth after launch was only ~1%) and not be an alarm if sales ramp remains slow. Additionally, we look forward to the FDA panel for PCSK9 drugs on June 9-10, where we will gain additional insight on safety, usage, and market penetration in the medical community."

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 $468.62 yesterday.

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