Amgen (AMGN) Suit No Surprise for Regeneron (REGN) - Analyst (SNY)

RBC Capital comments on Regeneron (Nasdaq: REGN) following news that Amgen (Nasdaq: AMGN) sued it and Sanofi (NYSE: SNY) for patent infringement over its anti-PCSK9, LDL-cholesterol lowering franchise.

Analyst Adnan Butt commented, While surprised, we do not think patent litigation, based on real infringement or for strategic reasons, should have been totally unexpected.

At first blush we would give REGN and SNY the benefit of the doubt in having done foundational, freedom to operate work prior to embarking on an expensive development program with alirocumab. We point to REGN’s settlement with Roche over Eylea related patent litigation as precedence in terms of their willingness to negotiate, though this is an independent situation with SNY involved as well. At this time we do not have visibility on whether or not Amgen will be successful at delaying a launch for alirocumab. And we view any weakness in Regeneron as a buying opportunity.

RBC has Regeneron at Outperform with a price target of $373.

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

Regeneron Pharma closed at $340.71 yesterday.

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