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Editor’s note: This article was originally published yesterday.
What: Shares of biopharmaceutical companies Allergan, Inc. (NYSE:AGN) and Regeneron Pharmaceuticals Inc (NASDAQ:REGN) are heading in notably different directions today following an announcement from Allergan that data from its phase 2 study of vision-loss drug DARPin didn’t support proceeding to late-stage trials. Allergan shares fell 15% on the news while Regeneron shares spiked as much as 17%.
So what: It’s been a miserable day for Allergan, Inc. (NYSE:AGN), which started the day off by slightly lowering its full-year EPS forecast from a range of $4.75-$4.83 to $4.70-$4.76. To add the icing on the cake, its midday report that DARPin did show some differentiation from Novartis AG (ADR) (NYSE:NVS) and Roche (OTCBB:RHHBY)‘s Lucentis but didn’t demonstrate enough to move the drug onto phase 3 trials, sent Allergan into the abyss. It probably doesn’t help, either, that MAP’s inhaled migraine drug Levadex, which Allergan acquired when it purchased MAP for nearly $1 billion earlier this year, also recently received its second complete response letter. Allergan, Inc. (NYSE:AGN) just can’t seem to catch a break.
On the flipside, Regeneron Pharmaceuticals Inc (NASDAQ:REGN) shares are soaring on the news as DARPin would have been a direct competitor to its lead drug Eylea in terms of wet age-related macular degeneration. With DARPin’s development delayed, Eylea has a chance to continue to grow sales at a tremendous pace. Deutsche Bank AG (USA) (NYSE:DB) took the opportunity to boost its price target on Regeneron up to $310.