Regeneron investors can breathe a sigh of relief – Piper Sandler

Piper Sandler analysts said in a note Friday that the key perceived Eylea overhang for Regeneron (NASDAQ:) has diminished with the Mylan infringement judgement.

Last year, REGN filed a patent infringement lawsuit against Viatris’ Mylan unit, alleging that the regulatory filing of an aflibercept biosimilar for approval infringed on certain patents. This week, a court ruled that REGN’s patent rights were infringed.

“While we believe the VEGF/ophtho market is simply not set up for meaningful biosimilar use at this point, we also acknowledge this Mylan litigation was seen as a key overhang by many,” said Piper Sanler. The firm maintained an Overweight rating on REGN shares in the note.

“With the regulatory exclusivity period for Eylea extending through mid-May 2024, and today’s infringement judgement further providing patent protection into June 2027, we think investors can breathe a sigh of relief – at least in the near-term – as the company continues converting the Eylea market to Eylea HD,” the firm added.

Piper Sandler’s US Eylea estimates remain well above consensus at $6.6 billion and $6.7 billion for FY24 and FY25, respectively.