Regeneron(REGN) GlobeNewswire News Room·2025-02-24 21:22Core Insights - Regeneron Pharmaceuticals Inc. is experiencing significant challenges, including disappointing sales, legal issues, and analyst downgrades [1][2] - TD Cowen has reduced its price target for Regeneron from 1,030 due to increased competition and lower revenue expectations for EYLEA® [1] Sales Performance - Regeneron reported only a 3% year-over-year increase in U.S. net sales for EYLEA® and EYLEA HD® in Q3 2024, attributing the underperformance to lower net selling prices and pricing pressure in the anti-VEGF category [6] Legal Challenges - The company is involved in a securities fraud class action lawsuit related to a significant stock price drop on October 31, 2024, which resulted in a loss of approximately $9 billion in market capitalization [2] - The lawsuit alleges that Regeneron made false statements regarding Medicare reimbursement rules for EYLEA® and failed to disclose credit card fee payments to distributors, which allegedly inflated reported sales figures [3][4] Regulatory Issues - The Department of Justice has filed a lawsuit against Regeneron for alleged violations of the False Claims Act, claiming the company fraudulently inflated Medicare reimbursement rates by submitting false Average Sales Price (ASP) reports [5] - The undisclosed price concessions related to credit card processing fees are central to the allegations, suggesting that Regeneron misrepresented its revenue reporting [7]