Morgan Stanley Sees Policy Risks Receding for Regeneron (REGN)

Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is included among the 13 Best Debt Free Dividend Stocks to Buy Now.

On December 12, Morgan Stanley analyst Terence Flynn raised the firm’s price target on Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) to $768 from $767 and kept an Equal Weight rating. The firm expects many of the policy concerns that weighed on biopharma this year to fade in 2026. As those pressures ease, attention is likely to shift back to company fundamentals, the analyst said in a 2026 outlook note.

In other news, on December 23, the Ministry of Health, Labour and Welfare in Japan granted marketing and manufacturing authorization for Dupixent (dupilumab). The approval covers the treatment of bronchial asthma in children ages 6 to 11 with severe or refractory disease whose symptoms are not adequately controlled with existing therapies. This decision expands the earlier approval in Japan, which applied to patients 12 and older.

Dupilumab is being jointly developed by Sanofi and Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) under a global collaboration agreement. To date, the drug has been studied in more than 60 clinical trials involving over 10,000 patients across multiple chronic conditions linked in part to type 2 inflammation.

Beyond current approvals, Sanofi and Regeneron continue to study dupilumab in a wide range of diseases driven by type 2 inflammation or other allergic processes. Phase 3 trials are underway in areas such as chronic pruritus of unknown origin, lichen simplex chronicus, and allergic fungal rhinosinusitis. These potential uses remain under investigation, and safety and efficacy for these indications have not yet been fully evaluated by regulators.

Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is a biotechnology company focused on discovering, developing, and commercializing medicines for serious diseases, with an emphasis on translating science into treatments that can meaningfully change patients’ lives.

While we acknowledge the potential of REGN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: Dividend Achievers List: Top 16 Stocks and 13 Top Tech Stocks Paying Consistent Dividends.

Disclosure: None.