Eye Drug Eylea Price Manipulation: Regeneron Faces US Justice Department Allegations Over Medicare Pricing Of Its Best-Selling Eye Drug
Portfolio Pulse from Vandana Singh
The U.S. Justice Department has accused Regeneron Pharmaceuticals of manipulating Medicare's drug-pricing system for its eye drug Eylea, alleging inflated average sales prices and undisclosed payments to distributors. This manipulation has significantly impacted Medicare expenses, with Eylea sales reaching $5.9 billion in 2023 and Medicare payments for the drug totaling over $25 billion from 2012 to 2023. The lawsuit, filed in Boston, claims violations of the False Claims Act due to not reporting all price concessions for Eylea.
April 11, 2024 | 6:09 pm
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Regeneron Pharmaceuticals is accused by the U.S. Justice Department of manipulating Medicare pricing for Eylea, leading to inflated Medicare costs and increased revenues for the company.
The allegations against Regeneron Pharmaceuticals by the U.S. Justice Department regarding the manipulation of Medicare pricing for its drug Eylea are likely to have a negative impact on the company's stock price in the short term. Legal challenges, especially those involving government entities, tend to create uncertainty and can lead to financial penalties, loss of trust among investors, and potential long-term damage to the company's reputation. The specific accusation of inflating the average sales price of Eylea, a significant revenue source for Regeneron, underscores the seriousness of the allegations and the potential for substantial financial and reputational repercussions. The immediate market reaction, with REGN shares down 1.44%, indicates investor concern over the lawsuit's implications.
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