RBC says Regeneron reaction to biosimilar court ruling ‘overdone’

RBC Capital notes that West Virginia Northern District Court Judge Thomas Kleeh denied Regeneron’s (REGN) motion for a preliminary injunction against Amgen (AMGN), which could suggest that Amgen’s biosimilar aflibercept product, Pavblu, can now launch at risk after the FDA approval last week. While it is yet unclear whether Amgen will launch Pavblu at risk, the firm sees the “worst case scenario” for Regeneron to be Amgen’s immediate biosimilar launch, followed by other biosimilar aflibercept launches, though it notes that these could still see some delay or not be allowed to launch at all until early-2026. However, while the firm sees a potential earlier-than-expected launch of biosimilar product as “incrementally negative,” it adds that the Eylea franchise “has not been core to our bullish thesis” and given that it already assumes biosimilar aflibercept launches in early 2026 at the latest, the firm believes today’s initial stock reaction is “overdone and a buying opportunity.” RBC maintains an Outperform rating and $1,282 price target on Regeneron shares.