REGN: ABBV/APGE Deal Brings More Formidable Competitor Into Fold, Increasing Importance Of Dupi Follow-Ons

Research evidence excerpt

REGN: ABBV/APGE Deal Brings More Formidable Competitor Into Fold, Increasing Importance Of Dupi Follow-Ons

EQUITY RESEARCH QUICK TAKE

RBC Capital Markets, LLC

Brian Abrahams, M.D. (Head of Global

Healthcare Research)

Kevin Meli, Ph.D. (Senior Associate)

Nevin Varghese, Ph.D. (Analyst)

June 22, 2026

Regeneron Pharmaceuticals, Inc.

ABBV/APGE Deal Brings More Formidable Competitor Into Fold, Increasing Importance Of

Dupi Follow-Ons

NASDAQ: REGN | USD 609.94 | Sector Perform | Price Target USD 707.00

Sentiment: Negative

This morning, ABBV (covered by Trung Huynh) announced the acquisition of APGE for $10.9B. We believe the deal is a net negative

for REGN, as it brings a significantly more commercially capable operator — with deep dermatology market relationships, decades

of experience selling Humira and Skyrizi, and payer access infrastructure already in place — behind zumilokibart (zumi), APGE's

lead long-acting IL-13 antibody in atopic dermatitis (AD) and a potential next-gen competitor to Dupixent.

As noted in our recent APGE flash doc survey (June 8, 2026), Part B data have addressed key questions around competitive efficacy

to dupi and Ebglyss on deeper endpoints, and our survey of 54 dermatologists found that physicians would expect to switch ~20%

of their existing biologic patients to zumi and start ~18% of newly eligible patients on it, broadly consistent with our $2.5B out-

year U.S. AD sales estimate. The quarterly (Q3M) dosing advantage has been compelling to KOLs we have spoken with, though we

have been more skeptical on how broadly the every-six-month regimen will prove commercially viable in practice, given what we

saw in the AAD Part A maintenance data (March 2026). Conjunctivitis has also not been overly concerning to most docs surveyed.