NEW YORK (TheStreet) -- Regeneron Pharmaceuticals (REGN) shares are up 4.6% to $366.61 on Tuesday after announcing that early results from the clinical trials of its injectable cholesterol lowering treatment alirocumab suggest that the drug could reduce the risk of heart attacks and strokes by half.
However, analysts at Morgan Stanley (MS) reiterated their "equal weight" rating on the stock while removing its $310 price target, stating that positive experimental drug news is already built into the firm's analysis of the company.
TheStreet's Gregg Greenberg takes a closer look at Regeneron and Sanofi and their experimental cholesterol drug:
"While there could be some investor enthusiasm around the CV data, we do not believe alirocumab could differentiate itself from evolocumab on such a small study and further believe any positive CV data would be viewed as a class effect," said analysts at the firm, "Our $2B in 2020E WW alirocumab sales already reflects positive LDL lowering data, though we note positive outcomes data could double our estimates."
Regeneron is developing the drug in conjunction with Sanofi (SNY) .
TheStreet Ratings team rates REGENERON PHARMACEUTICALS as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate REGENERON PHARMACEUTICALS (REGN) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, solid stock price performance and growth in earnings per share. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- You can view the full analysis from the report here: REGN Ratings Report
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