Regeneron Upgraded as AbbVie Catches Policy Heat

Moz Farooque

Wed, May 14, 2025, 4:02 PM 1 min read

Regeneron (NASDAQ:REGN) upgraded to Buy portion AbbVie (NYSE:ABBV) gets downgraded arsenic Citi flags Trump medication argumentation risks. Citi's Geoff Meacham says President Trump's Most Favored Nation drug-pricing bid and threats to PBMs airs uneven vulnerability crossed U.S. pharma leaders.

• Warning! GuruFocus has detected 3 Warning Signs with REGN.

Meacham argues Regeneron's Eylea franchise and melanoma pipeline optionality permission it well-positioned, raising his terms people to $700 from $600 aft a astir 55% banal pullback since past year's peak. Conversely, AbbVie's bushed and rise momentum is acceptable to wane arsenic Humira's maturation slows and its late-stage pipeline lacks depth, prompting a downgrade to Neutral and a PT chopped to $188 from $205.

These standing shifts travel Monday's enforcement bid tying U.S. cause prices to the lowest OECD rates and calls to curb PBM influencemoves that initially knocked down manufacture shares already bruised by trade-tariff talk. Meacham believes capitalist expectations person reset, and that affirmative regulatory oregon commercialized quality could spark a meaningful sentiment reversal for Regeneron.

Why It Matters: With pricing reforms and PBM overhauls looming, pharma investors request to differentiate betwixt companies that tin sorb argumentation headwinds and those with thinner pipelines.

This nonfiction archetypal appeared connected GuruFocus.