Sometimes in biotech, the story changes fast. Regeneron Pharmaceuticals Inc. (REGN) just experienced one of those moments when Bank of America Securities flipped its rating from Underperform all the way to Buy on Wednesday. That's not a minor adjustment, that's a complete reversal of the investment thesis.
Analyst Tazeen Ahmad didn't just upgrade the stock, but boosted the price forecast from $627 to $860. So what changed? Several things, actually, and they paint an increasingly optimistic picture for the biotech giant.
The Eylea Situation Gets More Interesting
Here's the backstory: BofA's previous bearish stance centered on Eylea SD, and that pessimistic view largely played out as expected with consensus estimates dropping. But the analyst is now much more constructive on Eylea HD, the newer high-dose formulation, thanks to multiple label expansions.
The recent label updates have changed the calculus, along with an expected prefilled syringe approval coming mid-2026. Perhaps more tellingly, Ahmad's channel checks indicate that larger practices, which handle the bulk of anti-VEGF treatment volumes, may now be favoring HD over Vabysmo, a key competitor.
For 2026, the analyst projects U.S. Eylea franchise revenues hitting $4.35 billion. That's a meaningful number, and it sits well above where consensus estimates currently stand.
Dupixent and Pipeline Potential
Beyond Eylea, Bank of America sees additional upside from Dupixent, which Regeneron develops in partnership with Sanofi SA (SNY). The blockbuster drug continues to expand its reach across multiple indications.
Then there's pipeline optionality in 2026. The highlight here is Phase 3 data for fianlimab (LAG-3) in melanoma, expected in the first half of next year. Other catalysts include potential positive updates at a key competitor conference in January and what Ahmad expects will be a favorable, near-term resolution of Regeneron's Most Favored Nation discussions with the White House.
That last point matters because it would remove a lingering concern hanging over the stock, including a probable exemption from MFN CMMI demonstration projects. In other words, one less regulatory headache to worry about.
Recent Strategic Moves
Regeneron hasn't been sitting idle. In December 2025, the company announced a global collaboration with Tessera Therapeutics to develop and commercialize TSRA-196, Tessera's lead investigational in vivo Gene Writing program for alpha-1 antitrypsin deficiency. That's an inherited monogenic disease affecting the lungs, liver, or both organs.
Back in October 2025, Regeneron unveiled updated data from its investigational gene therapy DB-OTO for profound genetic hearing loss caused by variants of the otoferlin (OTOF) gene. These moves show a company actively building out its pipeline beyond its current core franchises.
Market Reaction
Investors seemed to like what they heard. Regeneron shares jumped 4.60% to $812.27 on Wednesday following the upgrade, hitting a new 52-week high. When a stock breaks through to fresh highs on the back of an analyst upgrade, it's usually a sign that the market is buying the thesis.
The question now is whether Ahmad's bullish call proves prescient or premature. But with multiple catalysts lined up for 2026 and growing momentum in key products, Regeneron suddenly looks a lot more interesting than it did when BofA had an Underperform rating on it.