Why Wall Street Is Suddenly Bullish on REGN: A Biotech Reassessment

The Turning Point in Regeneron’s Investment Thesis

Regeneron Pharmaceuticals Inc. (NASDAQ: REGN) witnessed a significant recalibration in institutional sentiment this week, with major investment banks reshaping their outlooks on the pharmaceutical innovator. The catalyst? A comprehensive reassessment of the company’s revenue trajectory and competitive positioning in key therapeutic markets.

BofA’s Strategic Shift: From Skeptic to Advocate

Bank of America Securities made headlines by reversing its cautious stance, with analyst Tazeen Ahmad upgrading Regeneron from Underperform to Buy and aggressively lifting the price target from $627 to $860—a 37% upside projection.

The shift reflects a fundamental change in conviction regarding Regeneron’s ophthalmic franchise. While BofA’s previous bearishness on Eylea SD proved prescient (consensus estimates have indeed contracted), the bank now sees meaningful upside in Eylea HD. Ahmad’s field research suggests that large-scale anti-VEGF treatment centers are systematically switching to Eylea HD over competing therapies like Vabysmo. The upcoming prefilled syringe approval—anticipated by mid-2026—is expected to further accelerate adoption rates.

Ahmad projects U.S. Eylea franchise revenues will reach $4.35 billion in 2026, implying substantial consensus upside.

A Diversified Growth Profile Beyond Ophthalmology

While Eylea represents the near-term catalyst, Regeneron’s earnings momentum extends across multiple vectors. The company’s co-developed immunology asset Dupixent (created in partnership with Sanofi SA [NASDAQ: SNY]) continues to show expansion potential.

More critically, the clinical pipeline is entering a productive inflection point. A Phase 3 readout for fianlimab, the company’s LAG-3 checkpoint inhibitor for melanoma, is scheduled for the first half of 2026—representing a pivotal de-risking event.

Strategic Partnerships and Emerging Technologies

Recent developments underscore management’s commitment to next-generation therapeutics. In December 2025, Regeneron announced a global partnership with Tessera Therapeutics to develop and commercialize TSRA-196, an in vivo gene therapy targeting alpha-1 antitrypsin deficiency (AATD). This hereditary condition poses significant clinical challenges to lung and liver function, representing a substantial market opportunity.

Gene therapy also featured in Regeneron’s October disclosures, with updated trial data on DB-OTO—an experimental treatment for severe genetic hearing loss caused by otoferlin gene mutations. These advancements position Regeneron at the frontier of genetic medicine innovation.

Catalysts and Regulatory Tailwinds

Additional upside scenarios include potential resolution of Most Favored Nation (MFN) negotiations with federal health authorities. A favorable outcome could eliminate a persistent valuation headwind and potentially secure exemptions from Medicare pricing demonstrations.

Competitive dynamics may also shift in Regeneron’s favor following announcements at January industry conferences.

Market Response

Regeneron’s stock responded decisively to the upgrade, climbing 4.60% to $812.27 on the announcement, reaching its 52-week peak. The price action reflects investor appetite for biotech exposure with diversified growth drivers and multiple near-term clinical catalysts ahead.