Assessing Regeneron Pharmaceuticals (REGN) Valuation After Dupixent’s New FDA Approval For Allergic Fungal Rhinosinusitis

The latest catalyst for Regeneron Pharmaceuticals (REGN) is US FDA approval of Dupixent for allergic fungal rhinosinusitis in patients 6 and older with prior sino nasal surgery. This expands the labeled uses of this key drug.

See our latest analysis for Regeneron Pharmaceuticals.

Despite the positive Dupixent news and other recent pipeline updates, such as the priority review for garetosmab and gene editing progress with Tessera, Regeneron Pharmaceuticals' recent share price momentum has been muted, with a 1-year total shareholder return of 10.28% alongside a 5-year total shareholder return of 72.68%.

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With REGN trading at $770.79, carrying a value score of 5 and a quoted 56% intrinsic discount plus an implied upside to analyst targets, is the recent caution a mispricing, or is the market already factoring in expectations for future growth?

Most Popular Narrative: 6.1% Undervalued

Compared with the narrative fair value of about $821.12, Regeneron Pharmaceuticals at $770.79 sits below that mark, and the narrative leans on a few core growth pillars to justify that gap.

The successful ramp of EYLEA HD, which is gaining physician adoption due to its clinical profile and durability, along with anticipated regulatory approvals for label enhancements (pending resolution of manufacturing site issues), could help offset patent/biosimilar pressures on legacy EYLEA, supporting stabilization and potential growth in core revenue and sustaining healthy margins over the next several years.

Read the complete narrative.

Curious what sits underneath that fair value call? The narrative leans on measured revenue growth, firm profit margins, and a richer future earnings multiple to bridge today’s price and that target.

Result: Fair Value of $821.12 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, the story could change quickly if competition for Eylea and pricing pressure hit revenue harder than expected, or if key pipeline bets disappoint commercially.

Find out about the key risks to this Regeneron Pharmaceuticals narrative.

Next Steps

If this mix of opportunity and caution rings true for you, consider acting while the data is fresh and shape your own view with 3 key rewards.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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