With stocks selling off and biotech giants like Gilead Sciences (GILD) and Biogen Idec (BIIB) falling, Regeneron (REGN) picked a heck of a day to deliver good news.
Special to The Chronicle The biotech giant and its partner Sanofi (SNY) announced that they would start late-stage trials of its eczema treatment after earlier trials showed that it helped reduce symptoms of the skin condition.
Piper Jaffray’s Edward Tenthoff and team call Regeneron’s dupilumab “a potential blockbuster.” They explain why:
Last year, Regeneron presented positive Phase IIa data of dupilumab in eosinophilic asthma. With the data presented yesterday in atopic dermatitis, it is becoming evident that targeting IL-4/IL-13 could represent a blockbuster approach for treating allergic diseases. We look for additional responder analysis from the Phase II asthma study of dupilumab in the coming months with Phase IIb data potentially this year. The drug is also being investigated in nasal polyposis.
We see several milestones for Regeneron in 2H:14 including resumption of U.S. EYLEA sales growth driven by label expansion along with additional data read-outs from the company’s rich pipeline. We reiterate our Overweight rating and $382 price target.
Shares of Regeneron have dipped 0.1% to $310.64 at 10:05 a.m., besting the the iShares Nasdaq Biotechnology ETF’s (IBB) 1.2% drop to $253.10. Sanofi has fallen 1.3% to $51.57, Gilead Sciences has declined 0.8% to $87.94 and Biogen Idec is off 0.8% at $317.55.
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