Join        Login             Stock Quote

Regeneron Pharma (RGEN): New Lipid Lowering Therapies Offer Long-Term Growth

 March 15, 2012 08:59 PM

Investors of Regeneron Pharmaceuticals, Inc. (NASDAQ:RGEN) have recently focused on the early success of the Eylea, which is indicated for neovascular (Wet) Age-related Macular Degeneration (AMD).

However, they might be overlooking the potential of REGN727, the company's first in a series of promising new lipid-lowering therapies.

In collaboration with Sanofi-Aventis, Regeneron is developing REGN727, a fully-human, subcutaneously administered antibody targeting PCSK9. Novel treatments, including PCSK9 inhibitors, may allow patients to achieve low levels of low-density lipoprotein Cholestrol (LDL-C).

[Related -Moving Towards A Top?]

REGN727 has shown encouraging Phase II data in heterozygous familial hypercholesterolemia (heFH) and primary hypercholesterolemia. Phase III efficacy trials could begin in the second quarter of 2012. REGN727 is the most advanced PCSK9 inhibitor in development among its competitors and could be first-to-market in 2015.

"We believe REGN727 will show strong LDL-C reductions in Phase III," Jefferies analyst Biren Amin wrote in a note to clients.

REGN727 is expected to show positive results in the late-stage study. It has shown supportive Phase II data with strong reductions in LDL-C (low-density lipoprotein-cholesterol or bad cholesterol) in heFH and primary hypercholesterolemia who are statin-refractory.

About 77 million people in the U.S. over 20 years of age have high LDL-C according to National Health and Nutrition Examination Survey (NHANES) 2005-2008. Amin estimates there are about 3.4 million candidates for  PCSK9 inhibitors. These high-risk patients have the greatest need for aggressive LDL-C lowering therapies, despite being prescribed background statin therapy.

[Related -Repligen (RGEN) Drops After FDA Setback Over Pancreatic Imaging Agent Review]

Assuming REGN727 shows favorable results in Phase III studies, and U.S. regulatory approval in 2015 without cardiovascular (CV) outcomes data, the therapy could achieve U.S. sales of $2.1 billion in 2020, resulting in a profit of $733 million.

If FDA requires cardiovascular (CV) outcomes data for REGN727, approval could be pushed to 2017. Then, the analyst expects 2020 U.S. sales of $1.3 billion.

"While we await full Ph II data and possibly Ph III trial design to include REGN727, we estimate the program could be valued between $19-33/share on a risk-adjusted basis. We expect REGN727's valuation may start to creep into shares in the next 12-18 months," said Amin, who has a "buy" rating and $127 price target on Regeneron shares.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageFord Motor Company (F) Q2 Earnings Preview: Light on the Top Line?

Ford Motor Company (NYSE:F) will release its preliminary second quarter 2014 results at 6:30 a.m. EDT read on...

article imageTripadvisor Inc. (TRIP) Q2 Earnings Preview: On Target Enough?

Tripadvisor Inc. (NASDAQ:TRIP) will release its second quarter financial results after market close on read on...

article imageFacebook Inc. (FB) Q2 Earnings Preview: Scoring Big on the World Cup

Facebook Inc. (NASDAQ:FB) will post its second-quarter 2014 financial results after the market close on read on...

article imageThe Boeing Company (BA) Q2 Earnings Preview: Durable Earnings Beater

The Boeing Company (NYSE:BA) will publish its second-quarter financial results before the open of the read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.