SAN DIEGO, Jan. 10, 2025 (GLOBE NEWSWIRE) -- A class action lawsuit has been filed on behalf of all persons and entities who purchased or otherwise acquired Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN) (“Regeneron” or the “Company”) common stock between November 2, 2023 and October 30, 2024 (the “Class Period”), charging the Company and certain of its current and former senior executives with violations of the federal securities laws (collectively, “Defendants”).
Regeneron investors have until March 10, 2025 to seek appointment as lead plaintiff of the Regeneron class action lawsuit.
If you purchased or acquired Regeneron common stock between November 2, 2023 through October 30, 2024, and suffered substantial losses, and you wish to obtain additional information or serve as lead plaintiff in this lawsuit, you may submit your information and contact us here: https://dicellolevitt.com/securities/regeneron-pharmaceuticals/.
You can also contact DiCello Levitt attorneys Brian O’Mara or Hani Farah by calling (888) 287-9005 or emailing investors@dicellolevitt.com. Those who inquire by email are encouraged to include their mailing address, telephone number, and the number of shares purchased.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice.
Case Allegations
Regeneron is a biotechnology company that designs products for eye diseases, allergic and inflammatory diseases, cancer, cardiovascular and metabolic diseases, among others. One of the Company’s primary products is Eylea, an injection to treat age-related macular degeneration, among other conditions, by inhibiting anti-vascular endothelial growth factor. The Regeneron lawsuit alleges that Defendants made false and misleading statements and concealed material adverse facts concerning Regeneron’s business and operations. Specifically, Defendants failed to disclose to investors that Regeneron paid credit card fees to distributors on the condition that distributors did not charge Eylea customers more to use a credit card. These payments subsidized the prices that customers paid when using credit cards to purchase Eylea, providing a competitive advantage and misleadingly boosting reported Eylea sales. By failing to report its payment of credit card fees as price concessions, Regeneron overstated the Average Sales Price (“ASP”) reported to federal agencies, thereby violating the False Claims Act.
The truth began to emerge on April 10, 2024, when the U.S. Department of Justice (“DOJ”) announced it had filed a complaint against Regeneron under the False Claims Act. The DOJ alleged that the Company failed to report millions of dollars in discounts provided to drug distributors in the form of reimbursed credit card fees, which inflated Eylea’s ASP and inappropriately increased Medicare reimbursements. On this news, Regeneron’s stock price declined by $31.50, or 3.4%, over two consecutive trading days to close at $904.70 on April 12, 2024.
Then, on October 31, 2024, Regeneron released its third quarter 2024 financial results, revealing disappointing sales for Eylea HD and Eylea in the United States. The Company’s reported sales had only increased 3% year-over-year, and quarterly sales of Eylea HD were only $392 million, missing consensus estimates of $415 million to $425 million. The Company also revealed that “[n]et product sales of EYLEA in the third quarter of 2024 were adversely impacted by a lower net selling price compared to the third quarter of 2023.” On this news, Regeneron’s stock price fell $84.59, or 9.2%, to close at $838.20 per share on October 31, 2024.
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