REGN: LAG3 Failure Turns Attention to Weak Pipeline; New PT $700

Research evidence excerpt

REGN: LAG3 Failure Turns Attention to Weak Pipeline; New PT $700

E 13.51 E 15.78 E 16.48 E 16.69 E 62.43 E

Geographic Atrophy (GA) readout in 4Q'26, but the data could be exploratory in nature Prior 13.15 E 14.98 E 15.34 E 15.11 E 58.73 E

and visual acuity improvement is not expected. Making it a minor catalyst. PNH data EPS: Quarterly EPS does not sum because of how REGN timed its

for Poze combo (C5) in Ph3 are also this year, but this is not being seen as a needle- share repurchases, which impacted the weighted average share count. Source: Company Data, Wells Fargo Securities estimates, and Factset.

mover either. We are of the view that REGN may have to revisit its M&A plans to utilize its NA = Not Available, NC = No Change, NE = No Estimate

balance sheet to strengthen pipeline.

Mohit Bansal

Equity Analyst | Wells Fargo Securities, LLC

How to think about REGN valuation and stock now? We think Dupixent growth story Mohit1.Bansal@wellsfargo.com | 212-214-8025

would continue here, but post Dupi concerns could keep multiple in check. HD Eylea IP is Zhengxi Sun, PhD

also being challenged. Stripping out early stage pipeline and assuming terminal growth Associate Equity Analyst | Wells Fargo Securities, LLC

rate of -2% post 2035 would make us see REGN FV at ~$600/sh, which is likely the worst Zhengxi.Sun@wellsfargo.com | 929-793-1007

case scenario for the stock. Realistically, we think the stock could trade around $650- Sadia Rahman, PhD

$700/sh until investors get more comfortable around the pipeline. Equity Analyst | Wells Fargo Securities, LLC

Sadia.Rahman@wellsfargo.com | 646-584-6948

Staying on sidelines. New PT $700 - We are removing Fianlimab from the model, which William Zhang

lowers our PT by ~$65/sh.