Regeneron(REGN) Prnewswire·2025-01-29 16:33Core Viewpoint - The Regeneron Pharmaceuticals, Inc. is facing a class action lawsuit alleging violations of the Securities Exchange Act of 1934, with claims related to misleading statements and undisclosed financial practices concerning its product Eylea [1][3][4]. Company Overview - Regeneron is a biotechnology company focused on developing treatments for various diseases, including eye diseases, allergic and inflammatory diseases, cancer, and cardiovascular and metabolic diseases [2]. Allegations of the Lawsuit - The lawsuit claims that Regeneron made false statements and failed to disclose that it paid credit card fees to distributors to prevent them from charging customers more for using credit cards to purchase Eylea [3]. - It is alleged that these payments effectively subsidized the prices customers paid, leading to a lower selling price for Eylea and providing Regeneron with a competitive advantage [3]. - The lawsuit also states that Regeneron misrepresented its sales figures and overstated the Average Sales Price (ASP) reported to federal agencies, violating the False Claims Act [3]. Impact of DOJ Complaint - On April 10, 2024, the U.S. Department of Justice filed a complaint against Regeneron under the False Claims Act, alleging that the company failed to report significant discounts provided to drug distributors, which inflated Eylea's ASP and improperly increased Medicare reimbursement [4]. Financial Performance - On October 31, 2024, Regeneron reported third quarter 2024 financial results, revealing only a 3% increase in U.S. net sales for Eylea compared to the third quarter of 2023, with Eylea HD sales at 415 million to $425 million [5]. - The report indicated that net product sales of Eylea were adversely impacted by a lower net selling price compared to the previous year, leading to a more than 9% drop in Regeneron's stock price following the announcement [5].