Analyst Lowers Price Target for Regeneron Pharmaceuticals Amid Sales Concerns and Investor Lawsuit

SAN FRANCISCO, Feb. 14, 2025 (GLOBE NEWSWIRE) -- Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is encountering significant challenges as it grapples with disappointing sales results and legal issues. Recently, analysts from TD Cowen revised their price target for Regeneron from $1,230 to $1,030. This reduction was driven by preannounced sales figures for January regarding EYLEA®, a crucial product in Regeneron's lineup. TD Cowen highlighted that increased competition has impacted their revenue estimates for the EYLEA® franchise.

The scenario is further complicated by a securities fraud class action lawsuit that Regeneron is currently facing, following a sharp decline in its stock price on October 31, 2024. On that day, shares of Regeneron tumbled by $84.59, leading to a loss of approximately $9 billion in the company’s market capitalization.

Hagens Berman, a law firm, has initiated an investigation into the allegations arising from this lawsuit and is encouraging investors who bought shares of Regeneron and incurred substantial losses to come forward.

Details of the Securities Class Action:

The lawsuit focuses on Regeneron's statements related to its adherence to Medicare reimbursement rules, especially concerning its EYLEA® product. The allegations include claims that Regeneron provided erroneous and misleading statements while concealing essential facts:

1. Regeneron allegedly compensated distributors for credit card fees under the condition that these fees would not be passed on to customers purchasing EYLEA®.
2. These payments effectively subsidized the prices customers faced when paying with credit cards for EYLEA®.
3. As a result, Regeneron purportedly provided undisclosed price concessions, which lowered the actual selling price of EYLEA®.
4. Given the sensitivity of retina practices to price changes for anti-VEGF medications, these undisclosed concessions granted Regeneron a competitive advantage.
5. Consequently, Regeneron is accused of inflating its reported sales figures for EYLEA®.
6. By failing to treat the credit card fee payments as price concessions, Regeneron is claimed to have overstated the Average Sales Price (ASP) submitted to federal entities, potentially breaching the False Claims Act.

This lawsuit follows a previous action initiated by the Department of Justice (DOJ) on April 10, 2024, against Regeneron, highlighting similar allegations that contend Regeneron fraudulently inflated Medicare reimbursement rates for EYLEA® through false reporting to the Centers for Medicare and Medicaid Services (CMS). The DOJ's lawsuit further claims that the ASP figures submitted lacked proper accounting for these price concessions obtained through credit card processing fees. Regeneron's maintained ASP and consequent stable reimbursements for EYLEA® have reportedly been emphasized in its marketing strategies, serving as a competitive advantage over rivals.

The steep stock decline on October 31, 2024, followed the release of Regeneron’s Q3 2024 financial results, which indicated disappointing U.S. sales figures for EYLEA® and EYLEA HD®. The report disclosed only a 3% increase in sales from the same quarter the previous year. Regeneron attributed this lackluster performance to "a lower net selling price compared to Q3 2023" and "pricing pressure in the anti-VEGF category."

This news contributed to an over 9% drop in Regeneron's stock price on that day.

Hagens Berman is investigating whether Regeneron provided misleading information to investors regarding its revenue and business practices.

"The significant drop in stock value, coupled with the unfolding details concerning Eylea's sales, raises serious concerns regarding Regeneron's transparency and regulatory compliance," said Reed Kathrein, the partner at Hagens Berman leading the investigation. "We are assessing the potential for securities fraud on Regeneron's part."

If you have made investments in Regeneron and faced significant losses, or if you possess relevant information that might assist in this investigation, you are encouraged to come forward.

To gain further insights and find answers to frequently asked questions regarding the Regeneron case and the ongoing investigation, please seek more information.

Whistleblower Information: Individuals with non-public information pertaining to Regeneron's practices may want to explore reporting options available through the SEC Whistleblower program. This program allows whistleblowers to potentially receive rewards of up to 30 percent of any successful recovery achieved by the SEC. For more details, contact Reed Kathrein.

Regeneron, Lawsuit, Sales