Amgen, Inc. (AMGN) and Regeneron Pharmaceuticals Inc (REGN)’s Cholesterol Drugs Are Here to Stay: UBS Analyst Matthew Roden

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Amgen, Inc. (NASDAQ:AMGN) and Regeneron Pharmaceuticals Inc (NASDAQ:REGN)’s cholesterol drugs are here to stay in the United States, according to UBS analyst, Matthew Roden. The comments come on the heels of Hilary Clinton expressing doubts about the cholesterol lowering treatments of both the pharmaceutical firms. The brokerage said that it has received feedbacks from a number of sources after its upgrading of both the companies’ shares.

Three Areas Of Pushback

UBS said in its constructive view of Amgen, Inc. (NASDAQ:AMGN) and Regeneron Pharmaceuticals Inc (NASDAQ:REGN), there were three areas of pushback. The first one was in biologics in large divisions does not live up to predictions always. That included cholesterol, GLP-1 and Prolia. The second was the anemic Rx trends would not support the case of bull.

According to the brokerage, the third point is the price, which is too high. As a result, it generates considerable payer pushback. UBS thinks that PCSK9 differ from the rest of the large market biologics launches. That was primarily due to the clear second-line indication in patients with considerable mortality, as well as, morbidity. Also, there is a lack of options for comparable treatment.

Total Costs Increase

The brokerage said that its costs analysts in respect of CV events indicated that the direct PCSK9 drug costs would boost total costs of taking care of the patients in the immediate term. UBS said that it was in agreement that it can fuel headline risk in the near term. However, the brokerage believes that the considerable expenses towards hospitalization for MI, as well as, stroke setting can be reduced in the long term by the dragging the event rate.

UBS said that it sees scope to reduce the CV event rate between 46 and 50%. That should save the system over $15 billion cumulatively on a 10-year period of the current prices. Its analysis excluded any other direct expenses in connection with the long-term treatment of post-secondary events. Therefore, the brokerage maintained its 2016 estimations for Repatha of Amgen, Inc. (NASDAQ:AMGN) and Praluent of Regeneron Pharmaceuticals Inc (NASDAQ:REGN).

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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