By Mackenzie Tatananni
Regeneron Pharmaceuticals stock has trailed behind the broader market over the past year, but there may be a cure for its malaise.
The drugmaker has posted an 11% gain in a 12-month period. Not too shabby, but worse than the S&P 500 as well as the S&P 500 Health Care Sector Index, which gained 17% and 14%, respectively.
So why take a chance on an underperformer? BofA Securities has an answer to that. The firm upgraded shares of the drugmaker to Buy from Underperform on Wednesday and raised its price target on the stock to $860 from $627.
Regeneron was up 4.7% at $813.38. If the gains hold, the stock will notch its highest close since Nov. 12, 2024, when it ended the session at $821, according to Dow Jones Market Data.
"The eyes still have it," BofA Securities quipped in a research note. No, seriously: Analysts with the firm see potential in Eylea HD, Regeneron's long-acting eye injection.
Recent label changes are one positive. In November, the Food and Drug Administration approved the drug for use in patients with macular edema following retinal vein occlusion, a condition where leaky blood vessels in the eye cause swelling. Pre-filled syringes of Eylea HD are likely to be approved sometime in mid-2026, analysts added, presenting another prospective catalyst on the way.
The BofA team conceded that its previous fears over competition from biosimilars, or lower-cost medications that are highly similar to existing drugs, were overblown.
While analysts feared biosimilars for the standard-dose version of Eyelea would hurt Eyelea HD sales, this thesis doesn't seem to have panned out. Net sales of Eyelea HD grew 10% to $431 million in the third quarter, contributing to a 1% increase in total revenue.
Furthermore, BofA's checks with doctors in the field indicate traction is growing. Larger practices may now favor Eylea HD over Vabysmo, a competing injection from Genentech, analysts said.
Eyelea HD may be in the spotlight, but it isn't the only drug on BofA's radar. The firm sees a potential for further upside from Dupixent, a monoclonal antibody co-developed with Sanofi.
The drug "continues to deliver growth in established indications" such as asthma and atopic dermatitis, analysts wrote. Recent approvals for conditions such as chronic obstructive pulmonary disease, where Dupixent has been approved as an add-on treatment, "are progressing well and expected to drive steady franchise growth."
Outside Regeneron's product portfolio, developments on the regulatory front could drive the stock higher. Wall Street is waiting for the drugmaker to reach an agreement with the White House on most favored nation pricing, following in the footsteps of manufacturers like Amgen and Gilead Sciences.
MFN pricing refers to a policy where drug prices are aligned with the lowest prices paid for the same drugs in other developed nations. The White House plans to offer drugs through its TrumpRx platform at lower prices, cutting out pharmacy-benefit managers and other intermediaries.
Sanofi struck a deal with the administration last month. Analysts noted that the agreement didn't reference Dupixent. BofA models revenue of $20.7 billion for 2026, in line with consensus estimates.
The firm believes a deal with the White House is "imminent." Clarity here should clear up any MFN-related uncertainty that has weighed on the stock.
BofA isn't the only firm rooting for Regeneron. Of 30 analysts tracked by FactSet, 21 rate the stock at Buy or Overweight. Nine rate it at Hold, and none at Sell.
Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
January 07, 2026 16:05 ET (21:05 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments