Regeneron Stock (REGN) Retreats as Lung Disease Drug Data Disappoints

Shares in pharmaceutical giants Regeneron (REGN) and Sanofi (SNY) were badly off color today after mixed data on a lung disease treatment.

More Work Needed

Regeneron dropped 10% in pre-market trading with French group Sanofi falling 5% after the pair reported results from two phase 3 trials of their investigational chronic obstructive pulmonary disease treatment Itepekimab.

In one study involving former smokers with uncontrolled chronic obstructive pulmonary disease, the drug achieved its primary goal, showing a 27% reduction in moderate or severe exacerbations over 52 weeks compared to placebo.

However, the second late-stage trial did not meet its primary endpoint, though the companies noted signs of benefit earlier in the study period.

Itepekimab was generally well tolerated by patients across both trials, Sanofi said.

“While we are encouraged by the results of AERIFY-1, the results of both studies merit further exploration to have a full understanding of the data and the role that IL33 plays in this complex disease,” said Houman Ashrafian, Executive Vice President and Head of Research and Development at Sanofi.

Desperate Need

The companies said they remain committed to the treatment given that certain people with COPD are in desperate need of new options.

The French drugmaker said it is reviewing the findings with Regeneron and plans to consult with regulatory agencies to determine potential next steps.

Analysts have said previously that positive Itepekimab data would have been a catalyst for the Regeneron stock which is down around 14% to date this year. This is despite Regeneron making aggressive moves, such as the recent 23andMe acquisition, boosting its access to huge amounts of genetic data.

Is RGEN a Good Stock to Buy Now?

On TipRanks, RGEN has a Strong Buy consensus based on 18 Buy, 2 Hold and 1 Sell rating. Its highest price target is $958. RGEN stock’s consensus price target is $803.42 implying an 32.71% upside

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