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Published January 31, 2025
A Department of Justice investigation into pharmaceutical manufacturer Regeneron left investors wide-eyed. The stunning allegations caused investors to rapidly sell off their shares and Regeneron’s stock price plunged over nine percent. Some of those investors are now joining a class-action lawsuit against the Company.
Regeneron’s leading products are Eylea and Eylea HD, drugs which treat macular degeneration. In the Company’s February 2024 quarterly financial report, Regeneron reported making $1.4 billion on the Eylea brand. Some of this money came from billing Medicaid and Medicare for Eylea prescriptions.
But, the lawsuit alleges Regeneron’s executives knew the Eylea sales figures were based on fraudulent Medicaid and Medicare billing practices.
In April 2024, the U.S Department of Justice filed a case against the Company alleging Regeneron regularly overbilled the Government for Regeneron prescriptions.
In October, investors learned how much overbilling propped up Regeneron’s bottom line. Quarterly sales for Eylea were $30 million below expectations, due to what the Company called a “lower net selling price.”
Investors quickly dumped their shares after learning this news. Some of those investors are now joining the lawsuit.