Bloomberg News

Regeneron Sinks After Rival Eye Drug Combo Works in Trial

June 13, 2012

Regeneron Pharmaceuticals Inc. (REGN:US), maker of the macular degeneration therapy Eylea, fell the most in a year after another drug was shown to improve patients’ vision when used with Roche Holding AG (ROG)’s Lucentis.

Regeneron declined 12 percent to $111.88 at 4 p.m. in New York, the biggest decline since April 2011. Princeton, New Jersey-based Ophthotech Corp. said in a statement today that its medicine Fovista taken with Lucentis helped vision in a 449- patient study more than the Roche drug by itself.

The therapies treat wet age-related macular degeneration, a leading cause of vision loss in the elderly. Eylea competes with Lucentis, which brought in 1.5 billion Swiss francs ($1.6 billion) in sales last year for Roche. Tarrytown, New York-based Regeneron, whose stock has more than doubled since Eylea was approved in November, expects (REGN:US) its medicine to draw as much as $550 million in 2012 revenue.

“The data suggest that the treatment of wet AMD is likely to continue to evolve, and this is a negative for Regeneron as the company’s current valuation assumes consistently high sales of Eylea for a number of years,” Phil Nadeau, an analyst with Cowen & Co., wrote in a note today. “We are somewhat surprised by the magnitude of the weakness in Regeneron this morning, as Fovista itself is not yet a direct competitor to Eylea,” and could also be used with the Regeneron drug, he said.

Ophthotech is closely held.

To contact the reporter on this story: Meg Tirrell in New York at mtirrell@bloomberg.net

To contact the editor responsible for this story: Reg Gale at rgale5@bloomberg.net


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Companies Mentioned

  • REGN
    (Regeneron Pharmaceuticals Inc)
    • $355.61 USD
    • -4.91
    • -1.38%
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