Update 1:30pm: Adds that PTAB also ruled patent '338 was unpatenable.
Regeneron ( NASDAQ: REGN ) pared gains after the U.S. Patent Trial and Appeal Board ruled that patent claims to treat retinal diseases was unpatenable.
The PTAB ruled that Regeneron Eylea patent '338 and '069 were unpatenable, according to a ruling on the agency's website .
Morgan Stanley said in a note late last month that it expected expected "minimal" stock movements with Regeneron ( REGN ) potentially down "low single digit %" in a loss, analyst Matthew Harrison wrote in a note on Oct. 24.
With the loss, Eylea is expected to face competition from biosimilars, likely starting in 2024, according to Jefferies. Eylea faces competition from an Eylea biosimilar from Viatris ( VTRS ) and Roche's Vabysm.
In August Jefferies said the IPR hearing on the IPR on ‘338 patent suggested that the Regeneron ( REGN ) could lose the patent.
Regeneron ( REGN ) generated ~$1.63 billion in sales from Eylea in Q3.
Regeneron ( REGN ) is also developing a high-dose Eylea formulation that's patented with 2039 expiration to try to mitigate Eylea going off-paten in 2024.
Recall in November The U.S. Patent and Trademark Office's Patent Trial and Review Board said it will review two patents related to Regeneron ( REGN ) Eylea amid a challenge from Viatris ( VTRS ).
--With assistance from SA editor Jonathan Block.
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Regeneron pares gains after PTAB rules agains Eylea patent claims (update)