EFTA01783325.pdf

From: Richard Kahn Sent: Thursday, September 15, 2016 3:23 PM To: jeffrey E. Subject: Fwd: REGN trade idea Richard Kahn HBRK Associates Inc. 575 Lexington =venue 4th Floor New York, NY 10022 tel fax cell Begin forwarded message: From: =/b>"Ens, Amanda" Subject: =/b>REGN trade =dea Date: =/b>September 15, 2016 at 9:28:55 =M EDT To: =/b>' Cc: "Jaye, Matthew W" < 1 Rich, Not sure if you still =ave a lot of biotech exposure but Matt and I wanted to highlight =egeneron Pharmaceuticals. REGN (Buy, $397.56 last, 12m PO =526) Sell =an 350 put / buy Jan 420-480 call spread -> paying $3 (less than 1% =f spot ref 397.56). (we need to trade this in note format) EFTA_R1_00103857 EFTA01783325  Trading thinks we are =ow at a good entry point for REGN longs following the BAML FIC confer in =ondon and an investor dinner with the company. Few thoughts =elow. 3 key =ear term catalysts that represent significant upside: 1. We see an =njunction against key cholesterol drug Praluent as highly unlikely. =iming in uncertain, but could come in the next few months based on =istorical precedent. A positive ruling or a settlement with AMGN =epresents 10%+ upside. 2. Management felt very confident that the =nterim look for the LDL outcomes study will show a meaningful reduction =n cardiovascular events (expected by YE) 3. Management expects a strong launch for Dupilumab =n atopic dermatitis, and proactive conversations with the payers have =een initiated, facilitating their expectation of reimbursement. On the vol front, =mplieds are relatively low at 35% compared to the 33-49 vol range seen =ver the past year. Source: =loomberg Stock =epeatedly sees strong support in the $350 range Source: Bloomberg Matthew Jaye Equity Derivative Sales Bank of America Merrill Lynch Merrill Lynch, Pierce, Fenner & Smith =ncorporated One Bryant Park, New York, NY 10036 2 EFTA_R1_00103858 EFTA01783326  Amanda Ens Director Bank of America Merrill =ynch Merrill Lynch, =ierce, Fenner & Smith Incorporated One Bryant Park, 5th Floor, New York, NY 10036 The power =f global connections" This message, and any attachments, is for the intended =ecipient(s) only, may contain information that is privileged, =onfidential and/or proprietary and subject to important terms and =onditions available at http://www.bankofamerica.com/emaildisclaimer. If you =re not the intended recipient, please delete this message. 3 EFTA_R1_00103859 EFTA01783327