Regeneron Pharmaceuticals (REGN) needs "better" terms from a potential renegotiated agreement with Sanofi (SNY) over their drug development collaboration, RBC said in a report Tuesday.

The note said the firms have been providing breadcrumbs on ongoing negotiations. RBC conducted a buyside poll to gauge what investors may be expecting from a renegotiation to drive Regeneron shares.

There was an almost even split between investors suggesting

that Dupixent follow-ons into the joint venture and better economics were sufficient and those wanting to see an additional sweetener in cash or another asset from Sanofi, the report said.

"Overall it suggests to us that REGN needs to come away with better terms on its follow-ons than what is currently the case for dupi, and perhaps could extract some additional upside in the form of cash or another joint asset from partner SNY," it said.

RBC has a sector perform rating with a price target of $737.

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