The Zhitong Finance App learned that UBS resumed coverage of Regenerative Pharmaceutical Company (REGN.US) with a “buy” rating. The target price is 978 US dollars, which is about 30% higher than the latest closing price. The bank previously gave the stock a “neutral” rating.
UBS analyst Joon Lee said that the market currently does not fully take into account two aspects of value: one is the potential of regenerative to develop its Dupixent (dupriumab) successor product; the other is the possibility that the drug's monopoly period may be extended. Dupixent is a major drug developed by Regenerative in collaboration with SNY.US (SNY.US).
Lee pointed out that the next-generation Dupixent drug candidate “may fill the gap caused by the expiration of the patent monopoly period.” The company may extend the exclusive period beyond 2031.
Of the four next-generation Dupixent drug candidates currently being developed, one of them may release data early next year, followed by phase 3 trials in the second half of 2027. Lee pointed out that the other three next-generation drug candidates are scheduled to begin phase 1/2 clinical trials in early 2027 and phase 3 studies from 2027 to 2028. Lee also mentioned that patent reviews showed that these drug candidates had differentiated characteristics. For example, they can achieve “optimal target binding” in a pH-dependent manner, thereby improving target clearance and drug durability.
He expects Dupixent's revenue to reach $16 billion by 2035, while the market consensus estimate is $13 billion.
Lee added, “Dupixent's multi-tiered intellectual property system and the comments of its partner Sanofi on intellectual property protection in 2046 are really worth considering from a risk adjustment perspective. The lawsuit involves more than 50 patents, is time-consuming and laborious, and the risk of product launch is high, and competitors may be liable for damages as a result... these are all key factors to consider.”