Regeneron Pharmaceuticals Stock Retreats After Asthma Antibody Data

Analyst sentiment has been mostly pessimistic

Managing Editor
Jun 21, 2019 at 9:45 AM
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Regeneron Pharmaceuticals Inc (NASDAQ:REGN) is moving lower this morning, last seen down 0.9% at $317.63, even after the drugmaker revealed positive topline results from a Phase 2 study of its IL-33 antibody in asthma, being developed with Sanofi (SNY). Specifically, the antibody met its main goal of improving of asthma control and its secondary endpoint of improving lung function.

Cantor Fitzgerald was quick to weigh in, reiterating its "neutral" rating and $405 price target, saying there are some "important questions that need to be answered about this target beyond the press release." More broadly, 13 firms following Regeneron stock sport tepid "hold" ratings, compared to six carrying a "strong buy" recommendations. Meanwhile, REGN's average 12-month price target of $387.85 is a 21% premium to current levels.

In the options pits, traders have been leaning bearish. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows REGN with a 10-day put/call volume ratio of 1.37, which ranks in the 97th annual percentile. In simpler terms, puts have been purchased over calls at a faster-than-usual clip.

Following a long-term downtrend on the charts, Regeneron stock bottomed at $295.27 in early June. The shares have climbed off this level, and peaked above their 50-day moving average yesterday for the first time since early April. However, the stock has not closed above this trendline since mid-March, and remains 15% lower year-to-date.

 

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