UBS cuts Regeneron PT amid lung disease drug trial setback

Brokerage UBS cuts PT on drugmaker Regeneron Pharmaceuticals REGN.O to $560 from $633

UBS says it has removed smoker's lung drug, itepekimab, from "current collaboration pipeline given the regulatory uncertainty and potential competitor entries"

Company and partner Sanofi SASY.PA said last week that their experimental drug, itepekimab, failed in a late-stage trial, testing it for a lung disease commonly called "smoker's lung", but met the goal of another trial for the same disease

UBS says REGN will have higher operating expenses in the near-to-mid term due to integrating 23andMe and increased R&D for obesity treatments

However, UBS expects these costs to decrease after 2030

"Eylea franchise weakness remains a key overhang for our near-term REGN thesis" - UBS

Including session's move, REGN down 31.8% YTD