Business Corpus: Regeneron's Drug Will Be Fifth In Asthma — But 'It Will Be The Best'Regeneron Pharmaceuticals' potential blockbuster drug, Dupixent, has a shot at grabbing a broad approval in asthma treatment, an analyst said Thursday. The post Regeneron's Drug Will Be Fifth In Asthma — But 'It Will Be The Best' appeared first on Investor's Business Daily.

[Collection]

Regeneron Pharmaceuticals' (REGN) potential blockbuster drug, Dupixent, has a shot at grabbing a broad approval in asthma treatment, an analyst said Thursday.

And even though it will be the fifth biologic asthma treatment — behind drugs from Roche (RHHBY), GlaxoSmithKline (GSK), AstraZeneca (AZN) and Teva Pharmaceutical (TEVA) — it will be the best, Piper Jaffray analyst Christopher Raymond said in a report to clients.

"Better (effectiveness), better safety, better convenience," he said. "While Dupixent would be the fifth approved biologic in this setting, by our read of the data, it will be the best — by a long shot — as (effectiveness), safety and convenience all position the drug as the best option."

On the stock market today, Regeneron stock dipped 2.7%, to 371.67, as shares of other biotech companies lost more than 1%. Shares of partner Sanofi (SNY), ended the regular session flat, at 43.68.

Dupixent In Asthma Treatment

Dupixent already is an eczema treatment. On Oct. 20, the Food and Drug Administration could consider approving Dupixent as an asthma treatment. The drug works by interacting with a cytokine known to play a role in some immune disorders, like eczema and asthma.

Some worry Dupixent might only grab approval in a small group of asthma patients. Dupixent improves lung function, but it doesn't lower eosinophils, a type of white blood cell associated with asthma. In Phase 2 testing, Dupixent improved lung function despite eosinophil count.

"Phase 3 saw some controversy as this benefit was driven by mostly high eosinophil patients," Piper Jaffray's Raymond said. "Also driving concern — other approved biologics are limited to high eosinophil patients as they were mostly studied in that population."

Regeneron is hesitant to comment on the issue, but partner Sanofi is bullish, he said. A broad label would allow the drug to treat asthma regardless of eosinophil count. An estimated half of patients with severe asthma have high eosinophil counts.

Buy-Rated On Regeneron Stock

Piper Jaffray's Raymond expects Dupixent to grab the broader label as an asthma treatment. He models $439 million in Dupixent sales as an asthma treatment in 2019. That could grow to $1.07 billion, $1.42 billion and $1.68 billion in 2020-22, respectively, he said.

"We think the chances for a broad asthma label are high, and would be buyers (of Regeneron stock) into the Oct. 20 (potential approval) date," he said.

Raymond kept his overweight rating and 450 price target on Regeneron stock.

YOU MIGHT ALSO LIKE:

How Do You Spot A Major Market Top? Easy: Look For Heavy Distribution

How To Build Long-Term Profits In Stocks? Take Many Gains At 20%-25%

Should You Buy A Stock Ahead Of Its Earnings Report?

The post Regeneron's Drug Will Be Fifth In Asthma — But 'It Will Be The Best' appeared first on Investor's Business Daily.