HSBC has initiated coverage on Regeneron Pharmaceuticals (REGN.US) with a "Buy" rating and a target price of $890, citing the growth potential of its drug Eylea HD (aflibercept) in 2025 and multiple positive catalysts in its oncology pipeline. Analyst Yifeng Liu noted that while Eylea HD's current market penetration has been slower than expected, "regulatory risks related to Eylea HD are expected to be resolved in the near term, laying the foundation for accelerated adoption and higher penetration by 2026."

Regarding the oncology pipeline, the analyst highlighted the upcoming clinical data for the dual immunotherapy combination of LAG-3 antibody fianlimab and PD-1 inhibitor Libtayo (cemiplimab), expected in the first half of 2026. This regimen will be benchmarked against Merck’s (MRK.US) blockbuster drug Keytruda. Additionally, Phase III data for this combination in adjuvant melanoma treatment may be released next year. A Phase III trial for a fixed-dose combination targeting first-line metastatic melanoma is projected to conclude in 2027, with Bristol-Myers Squibb’s (BMY.US) Opdualag (nivolumab + relatlimab) as the comparator.

Financially, HSBC forecasts Regeneron’s adjusted diluted EPS at $43.48 for 2026, above the consensus estimate of $42.98.