#USA #Bensalem #Securities Laws #Regeneron Pharmaceuticals #Eylea

Understanding the Recent Investigation Involving Regeneron Pharmaceuticals

The Law Offices of Howard G. Smith are actively pursuing an investigation regarding Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN) on behalf of investors. The scrutiny comes after grave allegations have surfaced concerning potential violations of federal securities laws by the company. This investigation arises from a complaint filed by the U.S. Department of Justice (DOJ) on April 10, 2024, which accused Regeneron of fraudulence tied to Medicare reimbursement rates for its leading drug, Eylea.

The Allegations

The DOJ's complaint alleges that Regeneron submitted misleading average sales price reports to the Centers for Medicare and Medicaid Services. It is claimed that these reports intentionally excluded certain price concessions. By engaging in such actions, Regeneron reportedly inflated Medicare's costs for Eylea for years, significantly boosting its revenues.

Following this announcement, the impact on Regeneron’s stock was stark. Within two days, shares plummeted by $31.50, translating to a 3.4% drop, resulting in a closing price of $904.70 on April 12, 2024. This alarming turn of events served to diminish investor confidence and led to financial repercussions.

Financial Performance and Market Reaction

Continuing the trend of unfavorable news, Regeneron reported its Q3 2024 financial results on October 31, 2024. While the company announced a modest increase of 3% in U.S. net sales for Eylea compared to the previous year, it also revealed that net product sales were negatively influenced by a decline in the average selling price compared to Q3 2023.

The reported figures came to $1.54 billion, including $392 million stemming from the high-dose variant, EYLEA HD®; however, investors were taken aback by declining expectations which caused the stock price to sag even further. The day of the announcement saw shares drop by $84.59, or 9.2%, closing at $838.20. This decline likely heightened the concerns among those holding Regeneron shares.

Investor Guidance and Next Steps

Given the series of allegations and their adverse effects on Regeneron's stock performance, investors who hold or have previously purchased common stock in Regeneron should remain attentive to these developments while evaluating their rights and interests in the current scenario. Investors are encouraged to gather information about the investigation or to consult with legal experts to understand better the implications of these events.

For individuals seeking to ventilate concerns or to understand potential involvement in the investigation, the Law Offices of Howard G. Smith have opened lines of communication. They can be reached via telephone or email, or interested parties may visit their website for further details.

Conclusion

As the case unfolds, the extent of the potential fallout for Regeneron and its stakeholders remains uncertain. This investigation will likely play a critical role in shaping the future of Regeneron Pharmaceuticals and its investors. For now, vigilance and due diligence are key as this situation continues to develop.