Regeneron Faces Declining Eylea Sales and Medicare Risks, Justifying Sell Rating

Bank of America Securities analyst Tim Anderson reiterated a Sell rating on Regeneron today and set a price target of $543.00.

Tim Anderson has given his Sell rating due to a combination of factors impacting Regeneron’s financial outlook. One of the primary concerns is the anticipated decline in sales of the Eylea franchise, which is expected to be significantly below consensus estimates in the coming years. This decline is attributed to increasing competition from both branded and biosimilar products, which poses a substantial threat to Regeneron’s market share.
Additionally, Anderson highlights the potential risks associated with Regeneron’s high exposure to Medicare Part B, particularly under a Most Favored Nation (MFN) pricing framework. Despite some positive aspects, such as potential growth returning in 2026 and a strong R&D track record, these challenges contribute to a cautious outlook. The price objective of $543 reflects these concerns, as it is lower than the current trading price, justifying the Underperform rating.