Regeneron Pharmaceuticals Inc (NASDAQ:REGN) has, once again, shown today why biopharmaceuticals companies are so popular with investors, especially those with a speculative itch. After the news came out that the company has yet another new drug in its portfolio, Eylea, used for treating diabetic macular edema, or more simply high cholesterol, the stock is up a whooping 9.6% right now, but this could have well been a 18% rise. CNBC‘s Jim Cramer explained why this wasn’t the case.
In any sport, there are players who show sportmanship and take their defeat in a stride, and then there are sore losers, like Amgen, Inc. (NASDAQ:AMGN) which start to complain with the referee when the match has almost already been won by Regeneron Pharmaceuticals Inc (NASDAQ:REGN).
The referee that Regeneron Pharmaceuticals Inc (NASDAQ:REGN) will be dragged to is United States (U.S.) District Court of Delaware. Amgen has also decided to drag Sanofi SA (ADR) (NYSE:SNY), Regeneron’s partner in crime to the court regarding patent infringement. However, the move did little to stop Regeneron Pharmaceuticals Inc (NASDAQ:REGN)’s investors from celebrating and even more people rounded up for their piece of the pie, pushing the stock higher.
Cramer had one word for these sort of lawsuits, messy. Regeneron Pharmaceuticals Inc (NASDAQ:REGN) will probably have to wait a little longer before it finally launches its product in the market. Of course, there is also a chance that the cry baby, Amgen, will have to be given some candy, or cash in legal terms, to stop complaining.
“[…]Yes, definitely. When you have a headway compared with the most important competitor, it’s pretty clear that Regeneron Pharmaceuticals Inc (NASDAQ:REGN) is highly a, it’s game set and match for them. The Amgen, Inc. (NASDAQ:AMGN) patent claim, I don’t know, you know how patent claims work, they tend to be messy. I think that Regeneron has and Sanofi , their patent is good and the cholesterol drug is amazing because it works in addition to others where you have sticky cholesterol that will not come down,” said Cramer.
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