UPDATE: UBS Upgrades Regeneron Pharma (REGN) Two-Notches to Buy on PCSK9 Upside and Valuation

(Updated - September 8, 2015 8:59 AM EDT)

UBS upgraded Regeneron Pharma (NASDAQ: REGN) from Sell to Buy with a price target of $565.00 on upside PCSK9 view and valuation.

Analyst Matthew Roden said the company will likely beat numbers into year-end and valuation is more reasonable.

"We are upgrading REGN shares to Buy (from Sell) on a new PCSK9 survey of 50 US/EU docs that in our view, suggests upside to consensus Praluent numbers," Roden comments. "We now see the risk-reward in REGN shares as more favorable: since reporting 2Q, REGN is down -14% (vs. S&P 500 -8% and XLV -10%) and is currently trading at 34x 2016e EPS (down from 40x early July) despite two fundamental developments that we saw as positives: the breakout 2Q Eylea sales and Sanofi I/O collaboration economics."

He added, "Big picture, REGN is in a significant growth phase with the Eylea DME launch and now the Praluent launch, both of which should drive upward revisions in the near term, while mid-long term infections could be driven by dupilumab (ph3 data 2016e) and the emerging I/O combo pipeline, where we are most interested in the bispecifics."

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 $499.99 yesterday.

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