Regeneron downgraded at RBC Capital after ‘disappointing’ itepekimab results

As previously reported, RBC Capital downgraded Regeneron (REGN) to Sector Perform from Outperform with a price target of $662, down from $943, following “disappointing” itepekimab results given the firm’s sense that the path forward for that drug “may be limited.” The firm still likes the long-term prospects of the company’s R&D engine and believes shares are likely fundamentally undervalued, so it “would not be surprised to see shares rebound off of lows.” However, RBC believes substantial outperformance in the near term beyond this would require success of a pipeline drug with similar multi-billion dollar potential to itepekimab and/or “major and well-received” external business development, which does not “seem imminent,” the analyst tells investors.