NEW YORK, Jan. 28, 2025 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) on behalf of long-term stockholders following a class action complaint that was filed against Regeneron on January 7, 2025 with a Class Period from November 2, 2023 to October 30, 2024. Our investigation concerns whether the board of directors of Regeneron have breached their fiduciary duties to the company.

On April 10, 2024, the U.S. Department of Justice (“DOJ”) announced it had filed a complaint against Regeneron under the False Claims Act. According to the DOJ, the Company failed to report millions of dollars in discounts provided to drug distributors in the form of reimbursed credit card fees. As a result, the DOJ alleges that the ASP of Regeneron’s Eylea drug was inflated, which inappropriately increased Medicare reimbursements. By reimbursing credit card fees, Regeneron subsidized the treatment costs, thereby gaining a competitive advantage over other anti-VEGF treatments.

On this news, the price of Regeneron shares declined by $31.50 or 3.36%, over two consecutive trading days to close at $904.70 on April 12, 2024, on unusually heavy trading volume.

Then, on October 31, 2024, before the market opened, Regeneron released its third quarter 2024 financial results, revealing lagging U.S. net sales for Eylea HD and Eylea. The Company reported sales had only increased 3% versus the third quarter 2023, 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.” In the wake of this news, Reuters reported the Company had “reported weaker-than-expected quarterly sales of the higher dose version of its blockbuster eye disease drug Eylea.”

On this news, Regeneron’s stock price fell $84.59, or 9.2%, to close at $838.20 per share on October 31, 2024, on unusually heavy trading volume.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants allegedly failed to disclose to investors: (1) that Regeneron paid credit card fees to distributors on the condition that distributors did not charge Eylea customers more to use a credit card; (2) that these payments subsidized the prices that customers paid when using credit cards to purchase Eylea; (3) that, as a result, Regeneron offered a price concession that lowered Eylea’s selling price; (4) that, because retina practices were sensitive to higher prices when using credit cards to purchase anti-VEGF medications, Regeneron’s price concessions provided a competitive advantage; (5) that, as a result of the foregoing, Regeneron misleadingly boosted reported Eylea sales; (6) that, by failing to report its payment of credit card fees as price concessions, Regeneron overstated the ASP reported to federal agencies, thereby violating the False Claims Act; and (7) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

If you are a long-term stockholder of Regeneron, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Marion Passmore by email at investigations@bespc.com, by telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.

About Bragar Eagel & Squire, P.C.:

Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.

Contact Information:

Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com