Regeneron Shares Fall as Eye Drug Fails to Show Benefit Over

Tallahassee, FL (StreetBeat) -- Regeneron Pharmaceuticals (Nasdaq:REGN.O) said its recently approved eye drug failed to show meaningful advantage over rival Roche Holding's (ROG.VX) Lucentis after two years of treatment, sending Regeneron's shares down 8 percent before the bell.

Regeneron reported data from a late-stage trial testing its drug Eylea in patients with age-related macular degeneration for two years against patients who received Lucentis for the same period.

Age-related macular degeneration (AMD) is the leading cause of blindness in the elderly. Some 11 million Americans have signs of AMD.

Patients taking Eylea gained an average of 7.6 letters on an eye chart with 4.2 injections during the second year compared with Lucentis' patients who gained 7.9 letters with 4.7 injections.

"We view this as a negative for Regeneron as Eylea appears to offer no meaningful advantage in efficacy or dosing post-Yr 1 at an uncompetitive price, translating to increased challenges against gaining market share from Lucentis/Avastin," Jefferies & Co analyst Biren Amin wrote in a note.

Regeneron shares were down $4.79 at $53.49 before the bell. They had closed at $58.28 on Friday on Nasdaq.

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