Bank of America Securities recently revised its stance on Regeneron Pharmaceuticals Inc. (NASDAQ: REGN), elevating the company's rating from Underperform to Buy. This upgrade, accompanied by a notable increase in the price target from $627 to $860, reflects a reassessment driven by promising product performance and potential future growth avenues.
Analyst Tazeen Ahmad highlighted several key factors motivating this upgrade. A primary consideration stems from enhanced expectations around Regeneron's flagship ophthalmology treatment, Eylea. Specifically, previous skepticism surrounding Eylea SD softened as the Underperform thesis largely transpired, leading to downward revisions in consensus estimates. However, focus has now shifted to Eylea HD, where multiple label expansions have broadened the treatment's applicability, resulting in projections that significantly surpass consensus forecasts.
One particular point of optimism concerns anticipated regulatory progress, including the expected approval of a prefilled syringe format for Eylea HD by mid-2026. This development is poised to improve delivery efficiency and patient convenience, potentially increasing market penetration. Supportive channel feedback further reinforces this sentiment; data indicate that larger medical practices, which represent the majority of anti-VEGF treatment volumes, are beginning to favor Eylea HD over competing therapies such as Vabysmo.
Looking ahead to fiscal 2026, Ahmad's financial model forecasts U.S. revenue for the Eylea franchise to reach approximately $4.35 billion. This projection underscores the product's critical role in Regeneron's revenue base and its contribution to the company’s growing momentum.
Beyond ophthalmology, Bank of America identifies additional areas of upside potential, notably from Dupixent. Developed in partnership with Sanofi SA (NASDAQ: SNY), Dupixent continues to demonstrate robust performance in its market segment. Coupled with the forthcoming Phase 3 results for fianlimab (LAG-3) targeting melanoma in the first half of 2026, these pipeline opportunities contribute to the firm's optimistic assessment.
Further positive momentum may emerge from upcoming industry and regulatory events. A key competitive conference scheduled for January is expected to provide additional visibility into the sector’s landscape, potentially offering favorable updates that could benefit Regeneron. Simultaneously, there is anticipation of a near-term resolution regarding Regeneron's Most Favored Nation (MFN) discussions with the White House. Successful negotiations could eliminate a significant overhang on the stock, removing concerns associated with MFN policies, including prospective exemptions from MFN Center for Medicare & Medicaid Innovation (CMMI) demonstration projects.
In December 2025, Regeneron and Tessera Therapeutics Inc. announced a global collaboration centered on the development and commercialization of TSRA-196. This investigational program focuses on an in vivo Gene Writing approach for alpha-1 antitrypsin deficiency (AATD), a hereditary monogenic disorder impacting lung and liver functions. This partnership represents a strategic expansion into gene therapy space, broadening Regeneron's therapeutic portfolio.
Additionally, updated clinical data were released in October 2025 for Regeneron's investigational gene therapy DB-OTO, which targets profound genetic hearing loss caused by pathogenic variants of the otoferlin (OTOF) gene. These developments reinforce Regeneron's commitment to advancing novel gene-based treatments.
Following these developments, Regeneron Pharmaceuticals' share price registered a gain of 4.60%, closing at $812.27 on the day of the announcement. This marks a new 52-week high, reflecting growing investor confidence bolstered by the company’s strategic advancements and robust product outlook.