Regeneron Shares Plunge 12% After Melanoma Drug Combo Misses Trial, Losing $9 Billion
Regeneron’s combination of fianlimab and cemiplimab missed the primary endpoint for progression-free survival in a 1,546-patient advanced melanoma trial, triggering a 12% share decline and $9 billion market value loss. This follows Eylea delays and a late-stage failure of lung-disease drug itepekimab, prompting at least 10 brokerages to cut price targets.
1. Late-Stage Melanoma Trial Failure
Regeneron’s experimental combination of fianlimab and cemiplimab failed to meet the primary endpoint for progression-free survival in a 1,546-patient advanced melanoma trial. The miss triggered a 12% share price drop and wiped roughly $9 billion off the company’s market capitalization.
2. Broader Pipeline Challenges
This setback compounds recent pipeline issues after regulatory delays for a pre-filled syringe version of the eye drug Eylea and last year’s late-stage failure of the lung-disease candidate itepekimab. At least 10 brokerages lowered their price targets, reflecting growing concern over upcoming clinical milestones.
3. New Parabilis Partnership
Regeneron announced a collaboration with Parabilis Medicines to develop treatments targeting hard-to-reach diseases. Under the deal, Parabilis could receive up to $2.2 billion in milestone payments, offering a strategic diversification while key trials remain in flux.