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Regeneron Pharmaceuticals (REGN) shares sank in Friday trading after the company published disappointing drug trial results for a treatment on a condition called smoker's lungs. The drug was co-developed with Sanofi (SNY, SAN.PA).
Yahoo Finance senior health reporter Anjalee Khemlani comes on Market Domination Overtime to speak more on this.
Regeneron has put up a bid to acquire genetic testing firm 23andMe (ME) after the company filed for bankruptcy.
To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here.
Well shares of Regeneron Pharmaceuticals, they're sinking. The move lower comes as trial results for the company's co-developed experimental drug with Sanofi disappoints. Joining us now with more is Yahoo Finance's, Angelique Clamontange.
That's right, Josh. They got news of uh, the drug not necessarily meeting the end points that it was supposed to. The stock down about 19%, uh closing at that rate today. And we saw that this is a drug that the company had uh, had co-developed with Sanofi and it's supposed to address chronic obstructive pulmonary disease and they're looking at former smokers who have basically inflammation or damage to their lung tissue, making it harder to breathe. Now the primary endpoint of reducing that kind of obstruction they had one trial that met the endpoint and one that didn't. So that mixed result is really what caused the pressure on the stock today. And this of course coming after Regeneron came to if you will save the day and took 23andMe out of bankruptcy recently. So they'd really gotten a bump in their stock because of that and now just kind of washed away and hitting a four-year low today.
And Ange, why does this matter more for Regeneron than Sanofi?
Yeah, Regeneron has had a little bit of questions surrounding it. Um, you know, some of the uh, analysts did uh, have looked at its pipeline and that's been sort of where the pressure's coming from. We saw some downgrades today just on this news. RBC and Wells Fargo punishing that stock because of the, the news today. Regeneron doesn't have any near term blockbusters and this was supposed to essentially be it. It's important to note that they already are working with Sanofi on a different product that did hit, that has been on the market. Dupixent, and it did get approved for COPD last year. That drug brings in about 14 billion and so this was looking to be sort of on the same range. Uh, even though that drug does address a number of other diseases but it could have been another blockbuster for Regeneron and now without that their near term pipeline is in question.
Ange, thanks so much, appreciate it. Have a great weekend.
You too.
