What Happened?
Shares of biotech company Regeneron (NASDAQ: REGN) fell 10.5% in the afternoon session after its experimental cancer treatment failed to meet the main goal in a late-stage study for patients with a type of advanced skin cancer.
The company announced its Phase 3 trial for a combination of its drugs, fianlimab and cemiplimab, did not achieve statistical significance in improving progression-free survival—the time patients live without their disease worsening.
Although the trial showed a numeric improvement, the results were not definitive enough to be considered a success, raising investor concerns about the drug's future. The study compared the treatment against Merck & Co.'s established drug, Keytruda, for patients with advanced melanoma. Adding to the negative sentiment, Citi downgraded Regeneron's stock to Neutral from Buy and significantly lowered its price target, citing the "disappointing" trial data.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Regeneron? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Regeneron’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. Moves this big are rare for Regeneron and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 19 days ago when the stock dropped 7.1% after its first-quarter 2026 earnings report revealed significant profitability concerns that overshadowed beats on revenue and earnings per share.
The company reported revenue of $3.61 billion and adjusted earnings of $9.47 per share, surpassing Wall Street's estimates. However, investor sentiment soured due to a sharp decline in profitability. Adjusted operating income came in at $642.9 million, a staggering 32.4% below analyst expectations. This was reflected in the adjusted operating margin, which contracted to 17.8% from 19.5% in the same quarter last year.
Furthermore, the company's free cash flow margin also declined, pointing to persistent struggles with efficiency. The market's negative reaction suggests that the headline beats were not enough to outweigh concerns about the company's deteriorating underlying profitability.
Regeneron is down 19.2% since the beginning of the year, and at $627.60 per share, it is trading 22.7% below its 52-week high of $812.27 from January 2026. Despite the year-to-date decline, investors who bought $1,000 worth of Regeneron’s shares 5 years ago would now be looking at an investment worth $1,216.
WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it.
This is what the early days of Palantir looked like before it became a $437 billion giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.
