Regenxbio's Gene Therapy Outlook Dims As Rival Treatments Gain Ground, Goldman Sachs Warns

Core Viewpoint - Goldman Sachs downgraded Regenxbio Inc (RGNX) to Neutral from Buy, citing uncertainty in the appeal of gene therapy for wet AMD and diabetic retinopathy due to competition and cost-effectiveness of newer treatments [1][2]. Group 1: Market Competition and Treatment Efficacy - The analyst notes that AbbVie Inc's ABBV-RGX-314 faces increasing competition, particularly due to its invasive delivery method, which is less favorable compared to rival treatments [1][3]. - Additional competing treatments, such as EyePoint Pharmaceuticals Inc.'s Duravyu, are progressing in clinical trials, which may further diminish the appeal of gene therapies in retinal diseases [3]. - The overall appeal of gene therapies in retinal diseases is viewed as decreasing, leading to a reduction in the projected peak sales for ABBV-RGX-314 [3]. Group 2: Clinical Trials and Future Developments - Data from pivotal trials evaluating the safety and efficacy of ABBV-RGX-314 in patients with wet AMD are expected in 2026, with plans for a Phase 3 clinical program for diabetic retinopathy [2]. - Regenxbio and Nippon Shinyaku announced a strategic partnership to develop RGX-121 and RGX-111, with Regenxbio set to receive $110 million upfront and up to $700 million in potential milestone payments [6]. Group 3: Pricing and Market Dynamics - As more patients adopt treatments, prices are expected to decline, potentially setting a lower price benchmark for ABBV-RGX-314 as it approaches commercialization [4]. - The increasing use of Regeneron Pharmaceutical Inc's Eylea biosimilars is noted, which have captured market share from the branded version despite the availability of Eylea HD [4]. Group 4: Stock Performance - RGNX stock has experienced a decline of 7.29%, trading at $7.315 [7].