(NASDAQ:REGN),
SAN FRANCISCO, Feb. 21, 2025 (GLOBE NEWSWIRE) — Regeneron Pharmaceuticals Inc. (NASDAQ: REGN) is facing headwinds on multiple fronts, including disappointing sales figures, ongoing legal challenges, and analyst downgrades. TD Cowen recently lowered its price target for Regeneron to $1,030 from $1,230, citing increased competition and lower revenue estimates for EYLEA(R), a key product. The firm pointed to preannounced January figures for the drug's sales.
This downgrade compounds existing woes. Regeneron is also embroiled in a securities fraud class action lawsuit stemming from a significant stock price drop on October 31, 2024. Shares plunged $84.59 that day, wiping out approximately $9 billion in market capitalization.
Hagens Berman is probing the allegations and urges investors who purchased Regeneron shares and suffered substantial losses to submit your losses now.
Class Period: Nov. 2, 2023 – Oct. 30, 2024
Lead Plaintiff Deadline: Mar. 10, 2025
Visit: www.hbsslaw.com/investor-fraud/regn
Contact the Firm Now: REGN@hbsslaw.com | 844-916-0895
Regeneron Pharmaceuticals, Inc. (REGN) Securities Class Action:
The litigation centers around Regeneron's disclosures regarding Medicare reimbursement rules for EYLEA(R). The lawsuit alleges the company made false and misleading statements and failed to disclose that it paid credit card fees to distributors on the condition they wouldn't pass those fees on to EYLEA(R) customers.
These payments effectively subsidized EYLEA(R) purchases made with credit cards, constituting undisclosed price concessions that allegedly inflated reported sales figures. The suit claims these undisclosed concessions gave Regeneron a competitive advantage, as retina practices are sensitive to price fluctuations for anti-VEGF medications purchased via credit card. It further alleges that by not reporting these payments as price concessions, Regeneron overstated the Average Sales Price (ASP) reported to federal agencies, a potential violation of the False Claims Act.
The investor class action suit alleges the truth began to emerge on April 10, 2024, when the Department of Justice (DOJ) sued Regeneron for False Claims Act violations. The DOJ lawsuit alleged Regeneron fraudulently inflated Medicare reimbursement rates for EYLEA(R) by submitting false ASP reports to the Centers for Medicare & Medicaid Services (CMS). The DOJ alleges these reports failed to account for the price concessions provided through credit card processing fees, and that Regeneron used the stable ASP and resulting stable reimbursement as a competitive advantage.
The October 31, 2024, stock drop occurred after Regeneron released Q3 2024 results, revealing disappointing U.S. net sales for EYLEA(R) and EYLEA HD(R). The company reported only a 3% sales increase year-over-year, attributing the lackluster performance to “the lower net selling price compared to the third quarter of 2023” and “anti-VEGF category pricing pressure.” This news sent Regeneron shares down over 9% that day.
Hagens Berman is looking into whether Regeneron betrayed investor trust by misrepresenting the legitimacy of its revenue reporting. “The precipitous stock decline, coupled with emerging details surrounding Eylea sales, raises questions about the propriety of Regeneron's disclosures and adherence to regulatory standards,” stated Reed Kathrein, the Hagens Berman partner heading the inquiry. “Our investigation is focused on determining whether the company's conduct amounts to securities fraud.”
If you invested in Regeneron and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now.
If you'd like more information and answers to frequently asked questions about the Regeneron case and our investigation, read more.
Whistleblowers: Persons with non-public information regarding Regeneron should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email REGN@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
