Why Regeneron (REGN) Shares Are Falling Today

What Happened?

Shares of biotech company Regeneron (NASDAQ:REGN) fell 4.1% in the afternoon session after the company highlighted challenges, including regulatory approvals and competitive pressures, at a healthcare forum. 

The presentation took place at the Bernstein Insights: Healthcare Leaders and Disruptors - 2nd Annual Healthcare Forum. While the company also discussed its strong product pipeline and business performance, the focus on potential hurdles appeared to worry investors. The mention of these specific difficulties may have overshadowed the more positive parts of the presentation, contributing to the stock's decline as investors weighed the risks ahead.

The shares closed the day at $555.58, down 3.7% from previous close.

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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 previous big move we wrote about was 2 days ago when the stock dropped 4.8% on the news that 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.

Regeneron is down 22.1% since the beginning of the year, and at $556.99 per share, it is trading 47% below its 52-week high of $1,051 from September 2024. Investors who bought $1,000 worth of Regeneron’s shares 5 years ago would now be looking at an investment worth $970.26.

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