Why Regeneron (REGN) Stock Is Down Today

What Happened?

Shares of biotech company Regeneron (NASDAQ:REGN) fell 4.8% in the afternoon session after a court ruling in Australia dealt a blow to the company's efforts to block a competing version of its blockbuster eye drug, EYLEA. 

A judge dismissed Regeneron's request for an injunction against Sandoz, which plans to launch its own version of the treatment for eye disorders like macular degeneration. This decision raised investor concerns about future competition for EYLEA, a major source of revenue for the company. The negative development overshadowed recent positive news about another drug, Dupixent, receiving a favorable opinion in Europe for a new use. The setback for EYLEA added to existing worries, as the company's revenue growth had already slowed over the previous two years and its operating margins had declined.

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What Is The Market Telling Us

Regeneron’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 4 months ago when the stock dropped 19% on the news that the company announced mixed results from its Phase 3 trials for itepekimab, an experimental drug for Chronic Obstructive Pulmonary Disease (COPD). 

While one trial met its primary endpoint, the other missed, raising concerns about the drug's future and delaying its potential market entry. This setback, likely spooked investors and contributed to the significant decline.

Regeneron is down 20.5% since the beginning of the year, and at $568.50 per share, it is trading 47.9% below its 52-week high of $1,092 from September 2024. Investors who bought $1,000 worth of Regeneron’s shares 5 years ago would now be looking at an investment worth $1,006.

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