Investing.com– Shares of Regeneron Pharmaceuticals Inc (NASDAQ:REGN) fell sharply on Monday after a U.S. court dismissed the biotechnology firm’s attempt to block Amgen Inc (NASDAQ:AMGN) proposed copy of its eye-care drug Eylea.
But analysts at RBC said Monday’s stock reaction was overdone and presented a buying opportunity.
RBC said while the potential earlier-than-expected launch of an Eylea biosimilar was negative for Regeneron, they remained bullish on the stock over its strong oncology pipeline and overall prospects.
Judge Thomas Kleeh in the district of Virginia rejected Regeneron’s request for a preliminary injunction against Amgen, who it accused of infringing several patents in developing its Eylea copy Pavblu.
Regeneron’s shares slid 4.6% to $1,091.98 on Monday, and were flat in aftermarket trade.
Eylea earned Regeneron nearly $6 billion in U.S. sales in 2023, with Pavblu- a biosimilar for the eye drug- likely to eat into those sales. But Amgen has so far not presented a timeline for releasing Pavblu.
Biosimilars are similar to generics in pharmaceuticals, although they cannot be copied exactly due to using living cells.
