Analyst Tim Anderson of Bank of America Securities maintained a Sell rating on Regeneron (REGN – Research Report), retaining the price target of $575.00.
Tim Anderson has given his Sell rating due to a combination of factors impacting Regeneron’s financial outlook. A significant concern is the drying up of funding for co-pay assistance programs, which has been a crucial support for patients using Regeneron’s Eylea, a leading product that contributes to about half of the company’s revenues. The lack of funding, particularly from the Good Days foundation, poses a risk to sales as patients may struggle to afford their medications, leading to a potential decline in Eylea’s market performance.
Additionally, the situation is exacerbated by the fact that a substantial portion of patients, especially those under Medicare Advantage, are at risk due to insufficient secondary insurance coverage. This scenario not only affects patient access but also impacts the financial health of medical practices that rely on dispensing these drugs. Furthermore, Regeneron’s position as a major donor to the co-pay assistance foundation suggests it may be strategically withholding funds to prompt other companies to contribute, which could be detrimental if the funding gap persists. These factors collectively contribute to the Sell rating, reflecting a cautious outlook on Regeneron’s stock performance.