Approval of Regeneron ‘s eye drug treating age-related macular degeneration could serve as the next big catalyst for shares of the pharmaceutical giant, according to JPMorgan. Analyst Chris Schott upgraded shares of Regeneron to overweight from neutral, calling the pharmaceutical company’s Eylea drug a “best in class therapy” slated to broaden its AMD segment. “While we expect Eylea trends to be in focus given this qtr’s volatility as well as the Vabysmo launch in 2022, we see these concerns as short-term in nature as we expect the launch of high-dose Eylea to represent a far more important driver for REGN shares,” Schott wrote. The positivity from Schott comes even after the company noted that a shift to an off-label competitor negatively impacted drug sales in the final quarter of 2022. Despite a crowded and increasingly competitive market, Schott also views Regeneron’s drug treating atopic dermatitis, or eczema, as another potential growth driver for the stock going forward. “We see Dupixent as well-positioned for further volume gains with a dominant share in one of the least penetrated major immunology categories,” Schott said. Another possible value force for shares is the company’s prostate cancer treatment, he added, with initial data for the treatment suggesting “potentially impressive anti-tumor activity in a setting where prior I/O therapies have shown little efficacy.” JPMorgan’s $850 price target implies about 19% upside for shares from Thursday’s close. Regeneron outperformed in 2022, rising 14% as the broader market fell. — CNBC’s Michael Bloom contributed reporting.
© heardonwallstreet.com