Cautious Outlook on Regeneron Amid Eylea Erosion and Medicare Policy Risks

In a report released today, Tim Anderson from Bank of America Securities reiterated a Sell rating on Regeneron, with a price target of $627.00.

Tim Anderson’s rating is based on a combination of factors, including the performance of Regeneron’s key products and future projections. Despite a strong third quarter with revenues exceeding expectations, there are concerns about the erosion of Eylea, one of Regeneron’s major products. The company’s collaboration revenues with Sanofi, particularly from Dupixent, showed strength, but the uncertainty surrounding the regulatory approval timelines for Eylea HD adds a layer of risk.
Another factor influencing the Sell rating is the potential impact of changes in Medicare Part B, which could affect Regeneron’s financial performance if certain policy frameworks are implemented. Although there is an expectation of revenue and earnings per share growth returning in 2026 and beyond, the challenges anticipated in 2025 and the alignment of forecasts with potentially lower consensus estimates contribute to the cautious outlook. Consequently, Anderson reiterates an Underperform rating with a price objective of $627, which is below the current trading price.