| COMPANY |
Regeneron Pharmaceuticals, Inc. |
| COURT |
United States District Court for the Southern District of New York |
| CASE NUMBER |
1:25-cv-00145 |
| JUDGE |
The Hon. Mary Kay Vyskocil |
| CLASS PERIOD |
November 2, 2023 through October 30, 2024 |
| SECURITY TYPE |
Securities |
LEAD PLAINTIFF DEADLINE IS MARCH 10, 2025.
If you have suffered losses and would like to discuss your rights, please fill out this form or you may contact Jonathan Naji, Esq. at (484) 270-1453 or via e-mail at info@ktmc.com.
Case Background:
A class action lawsuit has been filed on behalf of those who purchased Regeneron Pharmaceuticals, Inc. (“Regeneron”) (NASDAQ: REGN) securities between November 2, 2023 and October 30, 2024, inclusive (the “Class Period”).
One of Regeneron’s primary products is Eylea, an injection to treat age-related macular degeneration. The reimbursement rate for each claim submitted for Eylea and Eylea HD is based on the Average Sales Price (“ASP”) reported by Regeneron to Centers for Medicare and Medicaid Services. In reporting ASP, companies like Regeneron are required to include all price concessions, such as volume discounts, chargebacks, and rebates, as part of their calculation, meaning companies must report the net price received after accounting for these concessions.
On April 10, 2024, the U.S. Department of Justice (“DOJ”) announced it filed a complaint against Regeneron under the False Claims Act concerning the company’s failure to report millions of dollars in discounts provided to drug distributors in the form of reimbursed credit card fees, thus gaining an advantage over other anti-vascular endothelial growth factor (“VEGF”) treatments. The DOJ alleged that, as a result, Eylea’s ASP was inflated, which improperly increased Medicare reimbursements. On this news, the price of Regeneron common stock declined $31.50 per share, or approximately 3.36%, over multiple trading sessions, from a close of $936.20 per share on April 10, 2024, to close at $904.70 per share on April 12, 2024.
On October 31, 2024, before the market opened, Regeneron announced its financial results for the third quarter 2024 and reported Eylea and Eylea HD sales growth of 3% year-over-year and quarterly sales of Eylea HD of $392 million, missing consensus estimates of $415 million to $425 million. Regeneron further disclosed 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, the price of Regeneron common stock declined $84.59 per share, or approximately 9.17%, from a close of $922.79 per share on October 30, 2024, to close at $838.20 per share on October 31, 2024.
The complaint alleges that, during 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 misrepresented and/or failed to disclose that: (1) Regeneron paid credit card fees to distributors on the condition that distributors did not charge Eylea customers more to use a credit card; (2) these payments subsidized the prices that customers paid when using credit cards to purchase Eylea, which constituted a price concession that lowered Eylea’s selling price; (3) 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; (4) the price concessions caused Regeneron to misleadingly boost reported Eylea sales; (5) 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 (6) as a result, Defendants’ statements about the company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
What is a Lead Plaintiff?
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.