Regeneron allays competition fears for 'gold standard' eye drug, shares rise
Reuters
Published Aug 03, 2022 06:39AM ET
Updated Aug 03, 2022 12:06PM ET
By Mrinalika Roy
(Reuters) -Regeneron Pharmaceuticals said on Wednesday it expects demand for blockbuster eye drug Eylea to remain strong in the third quarter even in the face of emerging competition from rival drugs, sending the company's shares up nearly 8%.
Analysts earlier this year flagged competition concerns for Eylea from newly launched Roche Holding AG (OTC:RHHVF)'s Vabysmo, as both belong to the same class of drugs, called anti-VEGF.
"Despite new competition, Eylea's share was approximately half of the anti-VEGF category, affirming its status as the gold standard," Regeneron (NASDAQ:REGN) Chief Executive Officer Leonard Schleifer said.
U.S. sales of Eylea, which has dominated the market for treatments for eye diseases such as macular degeneration, jumped 14% to $1.62 billion in the second quarter ended June 30.
"Ongoing demographic trends such as the aging population and prevalence of diabetes support anticipated mid to high single-digit category growth for the foreseeable future," said senior Regeneron executive Marion McCourt.
Shares of the company rose 8.3% to $622.30 in mid day trading.
The company is testing high-dose Eylea in two chronic eye diseases, with data expected in the later half of 2022.
Wells Fargo (NYSE:WFC) analyst Mohit Bansal says the data will be "the most important catalyst" for the company, as the high dosage has the potential to make Eylea sustainable for a longer term.
Regeneron's anti inflammatory drug, Dupixent, recorded sales growth of nearly 40% in the quarter.
The company's quarterly revenue fell 44% to $2.86 billion, but came in ahead of analysts' expectation of $2.80 billion.
The fall was due to the U.S. regulator's decision to limit the use of Regeneron's COVID-19 antibody drug in January in all states due to its lack of effectiveness against the Omicron variant.
Regeneron said the U.S. Food and Drug Administration's review of application for the drug's full approval in certain patients was ongoing.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.