Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN) recently saw a big drop in its stock price due to disappointing first-quarter earnings. The company faced challenges with its main eye disease treatment, Eylea.
Its shares fell by up to 9% during trading, showing investor worry about the performance of key products and regulatory issues.
Regeneron reported adjusted earnings per share of $8.22 for the first quarter, missing analyst expectations of $8.48. Revenue totaled $3.03 billion, falling short of the expected $3.24 billion.
The drop in earnings and revenue was mainly due to weaker sales of Eylea, which decreased by 26% year-over-year to $1.04 billion in the U.S. Analysts had expected higher sales for both the standard and high-dose versions of the drug.
Eylea’s sales decline resulted from several factors, including lower wholesale inventory levels, a reduced selling price, and increased competition from alternatives like Roche’s Vabysmo.
Additionally, the U.S. Food and Drug Administration (FDA) rejected a prefilled syringe version of Eylea, citing problems with a third-party supplier. This setback made it even harder for Regeneron to boost Eylea sales.
On the positive side, Regeneron’s partnership with Sanofi on the anti-inflammatory medication Dupixent showed some good news. Dupixent sales rose by 19% to $367 million, although this was slightly below estimates. However, this increase could not make up for the overall negative impact of Eylea’s poor sales.
Regeneron’s stock has been under pressure, reflecting broader challenges in the biotechnology sector, including economic uncertainty and drug pricing pressures. As of the latest trading, Regeneron’s shares were around $557.78, down significantly from their recent highs.
The company needs to regain investor confidence by addressing the issues with its key products and managing regulatory challenges effectively.