Regeneron stock recovered and closed higher Monday after the drugmaker preannounced light sales of a high-dose version of its blockbuster eye drug, Eylea.
During the December quarter, Regeneron Pharmaceuticals' Eylea HD generated $305 million in U.S. sales, missing forecasts for $411 million, according to FactSet. Offsetting that, standard Eylea brought in $1.19 billion in U.S. sales, while analysts projected a slightly lower $1.07 billion.
But standard Eylea benefited from $85 million in one-time higher wholesaler stocking.
RBC Capital Markets analyst Brian Abrahams says the results offer a glimpse into Eylea's future as it faces off with cheaper biosimilars and amid continued competition from Roche's Vabysmo.
Regeneron stock reversed early losses and closed with a 2.9% gain at 716.90.
Eylea HD Faces Challenges
Investors initially lauded Regeneron for its efforts to develop a high-dose version of Eylea. Unlike the original shot, Eylea HD won't be susceptible to less-expensive biosimilars for some time. It's given every four weeks for the first three doses, followed by a dose every eight to 16 weeks. In comparison, standard Eylea requires a shot every four weeks for the first five doses, then moves to every either weeks.
But converting standard-dose Eylea patients to Eylea HD has proved to be a challenge.
In the second quarter, the Food and Drug Administration could sign off on a new dosing schedule — once every 24 weeks. Further, the FDA will consider approving a prefilled syringe of Eylea HD.
"All in, we continue to think conversion to HD will take more time and with key label expansions and features, we like the chances for HD to get back into growth mode," Piper Sandler analyst Christopher Raymond said in a report.
He has an overweight rating on Regeneron stock.
Follow Allison Gatlin on X/Twitter at @IBD_AGatlin.
