Regeneron Slump Continues as Analysts Become More Cautious

Shares of Regeneron Pharmaceuticals experienced a decline of 4% on Tuesday, as analysts’ outlook on the stock turns increasingly pessimistic. RBC Capital and Leerink Partners have both raised concerns regarding the future of Regeneron’s flagship Eylea franchise, leading to reduced expectations for the company.

The recent decline follows a ruling from the District Court of West Virginia, which denied Regeneron’s request for a preliminary injunction against Amgen, thereby allowing the potential launch of a biosimilar version of aflibercept (Eylea).

RBC Capital has expressed that the launch of the biosimilar aflibercept might be imminent. Although the firm had already anticipated a launch by early 2026, the possibility of it occurring sooner has increased their apprehension.

As a result, RBC has revised its price target for Regeneron downward from $1,380 to $1,252, citing a projected decline in U.S. ophthalmology sales for Eylea from an estimated $3.8 billion to $3.4 billion.

Despite this setback, RBC retains a positive outlook on Regeneron’s broader pipeline, maintaining an Outperform rating and suggesting that growth from other divisions of the company could mitigate the negative impact on the ophthalmology segment.

On the other hand, Leerink Partners adopted a more cautious approach by downgrading Regeneron from Outperform to Market Perform and reducing their price target from $1,175 to $1,077. They pointed to the recent ruling regarding the Eylea biosimilar injunction as a primary reason for their downgrade, noting that it introduces uncertainty about the future of the U.S. Eylea franchise.

The firm emphasized that U.S. Eylea sales could account for 23% of Regeneron’s total revenue in 2025, underscoring the significance of this development for the company’s profitability.

With the biosimilar threat on the horizon, both RBC and Leerink have highlighted uncertainties surrounding the adoption of Eylea HD and the commercial potential of Regeneron’s pipeline.

The more than 4% drop on Tuesday follows a 4.6% decline the previous day, marking a total decrease of approximately 12.5% over the past month.