Regeneron Pharmaceuticals reported weaker than expected Q4 sales

Published By: Eunice Gettys on January 10, 2017 01:23 pm EST

Regeneron Pharmaceuticals Inc (NASDAQ:REGN) has recently announced the sales data for Q4FY16. The company fell slightly short of the consensus estimate and the analyst thinks that the feebleness is likely due to weaker-than-expected growth in the number of total prescriptions. The analyst also reduced 12-month price target on the company down to $380 as he removed Praluent from his forecast model from H2FY17 onwards.

Cowen analyst, Phil Nadeau, commented that while the stock has plenty of positives, the recent court ruling has led to the reduction in the price target. Previously this week, the US District Court of Delaware ordered primary injunction against Regeneron and Sanofi for the production, marketing, and selling of Praluent. Earlier this year, Amgen had registered a complaint against both pharmaceutical giants for having violated its two patents. Judge Sue Robinson gave the decision in the favor of Amgen following which Regeneron will be unable to sell Praluent in the market. While Regeneron does plan to appeal against the decision, the analyst believes the chances of a favorable outcome are very slim.

Regeneron announced total sales of $858 million for the quarter, which was $17 million below the consensus estimate of $875 million. On the other side, Regeneron’s partner Sanofi’s Le Train production facility has been given the green signal by the FDA. The analyst believes that this bodes positively for the upcoming PDUFA of Dupixent.

The analyst slashed the price target of the stock down to $380 from $400 and reaffirmed Market Perform rating. The analyst ratings for the company are 6 Buy, 5 Outperform, and 13 Hold. The stock currently trades at a price of $372.77 and has gained 5% since the open of the market.