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Cautious Outlook on Regeneron Despite Strong Performance: Sell Rating Due to Potential Eylea Erosion and Medicare Risks

Cautious Outlook on Regeneron Despite Strong Performance: Sell Rating Due to Potential Eylea Erosion and Medicare Risks

Bank of America Securities analyst Tim Anderson maintained a Sell rating on Regeneron on August 1 and set a price target of $504.00.

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Tim Anderson’s rating is based on a combination of factors that suggest caution regarding Regeneron’s stock. Despite the company’s strong second-quarter performance, including impressive revenue and earnings per share (EPS) figures that exceeded expectations, there are concerns about future risks. One significant issue is the potential for faster-than-expected erosion of Eylea, a key product, which could impact future earnings.
Additionally, Regeneron’s high exposure to Medicare Part B poses a risk under the Most Favored Nation (MFN) framework, which could affect pricing and profitability. While the company has a solid research and development track record and promising pipeline readouts expected in the second half of 2025, these positive aspects are overshadowed by the potential challenges. Consequently, Anderson maintains a cautious outlook with a Sell rating, reflecting these uncertainties.

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