RBC Optimistic on Regeneron Following Lower Sales by Novartis' Lucentis

RBC Capital Markets analyst Adnan Butt is optimistic on shares of Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN) following lower sales outside the US by competing Novartis AG (NYSE: NVS) drug Lucentis.

Lucentis, is a ranibizumab injection for the treatment of wet age-related macular degeneration (AMD), macular edema following retinal vein occlusion. Lucentis is sold in the US via Genentech, and is marketed outside the U.S. by Novartis.

In Novartis' interim financial report, the company reported that Lucentis yielded $620 million (USD) in the first quarter 2014, up 6 percent cc. In the first quarter 2013, Novartis reported that Lucentis made $596 million (USD), up 4 percent cc.

According to RBC, the decrease in Lucenta sales underscores potential market share loss to Regeneron's Eyelea. Adnan Butt added that Lucentis growth in non-wet AMD indications outside the U.S. suggests that there is room for Eyelea to expand as it secures other approvals, including diabetic macular edema (DME). The analyst expects to Eyelea to capture more than half of the branded market share in the long-term.

Regeneron's Eyelea has a Pdufa date in DME on August 18. Regeneron reports first quarter results pre-market on May 8, 2014.

Shares of Regeneron closed at $293.43, down 3.18 percent for the day.