RBC Capital remains bullish on Regeneron, continues to see buying opportunity

RBC Capital notes that Regeneron (REGN) is down over $150 per share since the District Court judge denied the company’s motion for a preliminary injunction against Amgen (AMGN), which the firm continues to view as an overreaction given doctor feedback suggesting a limited role for biosimilar aflibercept with the market shifting to longer-acting VEGFs like EyleaHD, the possibility of a settlement could still occur, and the fact that the firm estimated a biosimilar needed to enter by early-2026 anyway due to IRA. With the stock now likely more than fully reflecting the possibility of Amgen’s immediate biosimilar launch, RBC continues to see a buying opportunity, and believes there could be meaningful potential upside in the immediate term in case the Appeals Court, through various legal proceedings, further delays the biosimilar. The firm continues to view Regeneron stock as significantly undervalued. RBC has an Outperform rating on the shares with a price target of $1,260.