Regeneron named ‘Catalyst Driven Idea’ at Morgan Stanley ahead of COPD data

Morgan Stanley analyst Matthew Harrison notes that Regeneron (REGN) and partner Sanofi (SNY) are expected to report pivotal Phase 3 data from the BOREAS trial of Dupixent for the treatment of moderate-to-severe COPD with Type 2 inflammation in Q1 and the firm names Regeneron as a "Catalyst Driven Idea" ahead of that readout. In a scenario where Dupixent demonstrates significant clinical efficacy in this indication, to which it assigns 30% odds, the firm would expect Regeneron shares to be up about 5%-7%. In a scenario where Dupixent meets the primary endpoint, but there is some debate around the effect size, which the firm assigns 30% odds of happening, the firm would expect shares to be up about 2%-4%. In a case where Dupixent fails in COPD, which Morgan Stanley sees as having 40% odds, the firm sees Regeneron shares falling about 2%-4%. Morgan Stanley has an Overweight rating on Regeneron with a price target of $883 on the shares.