HSBC: Initiate Regeneron Pharmaceuticals, Inc. (REGN.US) with a "buy" rating, optimistic about Eylea HD volume and multiple catalysts in the tumor pipeline.

HSBC issued a research report, covering Regeneron Pharmaceuticals, Inc. (REGN.US) for the first time and giving it a "buy" rating with a target price of $890. The core reasons include the growth potential of its drug Eylea HD (aflibercept) sales next year, as well as the positive catalysts of several cancer therapies in its research pipeline. Analyst Yifeng Liu pointed out that although the current market penetration rate of Eylea HD is not as expected, "regulatory risks related to Eylea HD are expected to be resolved in the short term, laying the foundation for accelerated adoption and penetration by 2026." Regarding the oncology research pipeline, the analyst emphasized the clinical data for the combination immunotherapy LAG-3 antibody fianlimab and PD-1 inhibitor Libtayo (cemiplimab), set to be released in the first half of 2026, with Merck & Co., Inc.'s (MRK.US) Keytruda as a reference control. In addition, phase III clinical data for the adjuvant treatment of melanoma with the combination therapy may be released next year. The fixed-dose combination phase III trial for first-line metastatic melanoma is expected to be completed by 2027, with Bristol-Myers Squibb's (BMY.US) Opdualag (nivolumab and relatlimab combination) as the comparator drug. In terms of financial forecasts, HSBC expects Regeneron's adjusted diluted earnings per share (EPS) to be $43.48 in 2026, higher than the market consensus of $42.98.