Regeneron Pharmaceuticals Inc (REGN) has revealed that its investigational COVID-19 antibody drug combination REGN-COV2 both prevented and treated the disease in monkeys and hamsters, says Reuters- an encouraging sign that the drug will also be effective in treating humans.
According to the report, Regeneron stated that the double antibody cocktail was able to “almost completely block establishment of virus infection.” The study, which involved 36 monkeys and 50 hamsters, has not yet been peer reviewed.
Regeneron also added that REGN-COV2 minimized infection in a second study with a much higher level of the virus- and that the results matched or exceeded animal studies of vaccine candidates.
Moreover, the animals did not show increased viral load or worsening of pathology after treatment, indicating that it will not worsen symptoms in humans, Reuters reports.
Clinical human trials of REGN-COV2 began in mid-June and the clinical program currently consists of three ongoing late-stage trials, including a Phase 3 trial for the prevention of COVID-19 in uninfected people who are at high-risk of exposure to a COVID-19 patient.
“We are running simultaneous adaptive trials in order to move as quickly as possible to provide a potential solution to prevent and treat COVID-19 infections, even in the midst of an ongoing global pandemic,” said George D. Yancopoulos, CEO of Regeneron.
The Phase 3 prevention trial is being jointly conducted with the National Institute of Allergy and Infectious Diseases (NIAID), part of the National Institutes of Health (NIH).
In the run-up to finding a treatment against COVID-19, shares in Regeneron have skyrocketed 72% so far this year. As a result the $635 average price target now indicates 2% downside potential in the coming 12 months.
Oppenheimer analyst Hartaj Singh recently raised the stock’s price target to $675 from $625 and maintained a Buy rating, saying that the company is one of his top biotech names, characterized by ongoing product launches, commercial execution, OPEX control, and a best-in-breed pipeline.
“We believe this quality biotech name deserves a higher multiple,” Singh told investors. “Given COVID-19 effects on sales and clinical trial follow-through lacking in FY20 visibility, we caution that further performance could be accompanied by greater volatility. We view sustained weakness as a buying opportunity.”
Overall, the rest of the Street is cautiously optimistic on the stock. The Moderate Buy consensus breaks down evenly between 9 Buys and 6 Holds. (See Regeneron stock analysis on TipRanks).
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