NEW YORK (AP) -- Shares of Regeneron Pharmaceuticals rose Friday as analysts took a positive view of the company's pipeline.
THE SPARK: Lazard Capital Markets analyst Joshua Schimmer said he believes the Tarrytown, N.Y., company has "another blockbuster franchise" in the works to complement its eye drug Eylea. He said Regeneron's experimental drug dupilumab could address a market exceeding $10 billion. Regeneron and its partner Sanofi are conducting clinical trials of the drug as a treatment for allergic asthma and atopic dermatitis, and Schimmer said it could be used as a treatment for other conditions including food allergies and eosinophilic esophagitis, an allergic inflammation of the esophagus.
He rates the stock "Buy" and raised his price target to $325 per share from $298.
RBC Capital Markets analyst Adnan Butt also raised his price target Friday, to $293 from $286, based on the company's cholesterol drug alirocumab. Butt said Regeneron should report late-stage data in the next few months. He holds an "Outperform" rating.
THE BIG PICTURE: Regeneron Pharmaceuticals Inc. makes Eylea, a treatment for the eye conditions "wet" age-related macular degeneration and a form of macular edema. Outside of the U.S., Regeneron shares profits on the drug with Bayer AG.
Sanofi and Regeneron collaborate on Zaltrap, a drug that is approved as a treatment for colorectal cancer. In May the companies said patients who had moderate to severe allergic asthma experienced improvements in lung function after they were treated with dupilumab. The drug is designed to ease symptoms by blocking a type of immune system response.
SHARE ACTION: Regeneron shares picked up $15.56, or 5.7 percent, to $289.16 in afternoon trading. The stock has climbed 82.8 percent this year and reached an all-time high of $290 during the day.