Regeneron named ‘Catalyst Driven Idea’ at Morgan Stanley

Morgan Stanley notes that the FDA is expected to make an approval decision on Regeneron’s (REGN) biologics license application, or BLA, for high dose Eylea to treat wAMD, DME and diabetic retinopathy on or before the PDUFA date of June 27 and names the stock as a “Catalyst Driven Idea” ahead of that decision. In the firm’s “base case” scenario, in which high dose Eylea is approved on or before the PDUFA date and is priced roughly in-line with Vabysmo, or about about a 20% premium to low dose Eylea, the firm would expect Regeneron shares to be flat to up 3% and Roche (RHHBY) shares to be broadly flat in response. In a possible scenario where high dose Eylea is approved on or before the PDUFA date and is priced at a premium to Vabysmo, the firm would expect Regeneron to be up 3%-5%, depending on pricing, and for Roche to be up 1%-2% due to potential share and contracting benefits from a lower price point. The firm has an Overweight rating and $927 price target on Regeneron shares.