Morgan Stanley Trims Regeneron (REGN) Price Target, Maintains Overweight Rating

Morgan Stanley has lowered its price target on Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) to $755 from $958, while maintaining an Overweight rating on the stock. The revision follows what the firm described as “mixed” results from a Phase 3 trial of itepekimab in chronic obstructive pulmonary disease (COPD), prompting the removal of the drug from its valuation model.

A biotechnologist pouring liquid into a test tube and analyzing its components in a lab.

Analyst Terence Flynn noted that despite the setback, Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)’s valuation remains underpinned by strong performance from its blockbuster drug Dupixent and the company’s sizable cash position. Dupixent, which is co-developed with Sanofi, continues to drive revenue growth across multiple approved indications, offering a solid foundation amid pipeline volatility.

Flynn emphasized that after the failed COPD trial, investor attention will increasingly turn to execution. Future performance will likely be judged on how effectively the company advances other late-stage assets and navigates upcoming regulatory and clinical milestones. While the decision to exclude itepekimab from forecasts reduces near-term upside, Morgan Stanley continues to view Regeneron as well-positioned within the biotech landscape, particularly given its proven commercial engine and research capabilities.

The updated price target reflects a recalibration of expectations following the disappointing trial outcome, but stops short of signaling a bearish turn. Instead, it highlights the importance of pipeline diversification and delivery in sustaining investor confidence going forward.

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