Regeneron Pharmaceuticals' (REGN) itepekimab will "more than likely" show statistically significant reductions in chronic obstructive pulmonary disease exacerbations, opening a "large" market opportunity, RBC Capital Markets said in a Wednesday note.
RBC analysts said they believe there is ample supporting evidence that the company's investigational antibody will demonstrate clear activity in former smokers with the disease. They acknowledged some risks to the phase 3 results, but they said these will be "more than offset" by the likely benefits.
The analysts said they see a "net favorable setup" given the company's "considerable" sales opportunity and current stock valuation. Given the large number of patients with uncontrolled exacerbation on triple therapies, they said they estimate the total market among former smokers eligible for biologics to be around $16 billion in the US alone.
RBC maintained the company's stock rating at outperform with a $943 price target.
Shares were up 1% in recent trading.
Price: 597.72, Change: +5.87, Percent Change: +0.99
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