Is Regeneron Stock heading towards $590?

Shares of Regenerate (NASDAQ:REGN), which was trading below $500 ahead of the biggest healthcare investor conference of the year, rose following the company’s recent presentation. Wall Street analysts raised the stock and Benchmark analyst Aydin Huseynov raised his price target to $590 per share.

On Tuesday, the US government agreed to purchase an additional 1.25 million doses of Regeneron’s antiviral treatment for COVID-19. But the deal, worth up to $2.6 billion, isn’t the main reason Wall Street is bullish on Regeneron.

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Analysts have been impressed by the rapid increase in sales of recently launched drugs that appear capable of offsetting potential pressure for its flagship vision loss treatment Eylea. Regeneron relied on Eylea for about 74% of total revenue in 2019, but a key patent expiration in 2023 could expose the Eylea brand to biosimilar competition.

Dupixent, an eczema treatment that Regeneron has developed in partnership with Sanofi (NASDAQ: SNY), now seems able to make up for Eylea’s potential losses. Dupixent’s sales increased 69% year over year to $4.4 billion annualized in the third quarter. By the end of 2022, Regeneron expects to submit six applications for different indications that could bring Dupixent’s addressable patient population and annual sales to more than $12 billion at its peak.

Dupixent isn’t the only new drug pushing Regeneron’s big needle. Libtayo, a cancer immunotherapy that Sanofi is helping Regeneron bring to market outside the United States, is receiving priority review by the Food and Drug Administration for first-line treatment of the most commonly diagnosed form of lung cancer .

By the end of 2022, Regeneron also plans to submit applications for five entirely new drugs. Jumping to $590 per share may not happen overnight, but that won’t be a problem for this biotech stock.

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