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Regeneron Pharmaceutical’s pricing strategy may be key to success

Regeneron Pharmaceuticals (NASDAQ:REGN), Tarrytown, New York, will undergo an FDA priority review of its VEGF Trap Eye (recently renamed “Eylea aflibercept”) on August 20th, the outcome of which will be closely watched by many market analysts. The experimental drug for the treatment of neovascular age related macular degeneration (AMD) recently demonstrated non-inferiority to ranibizumab (Lucentis) in the Phase III (VIEW) trial bringing it into direct market competition with Roche/Genentech, Novartis AG and others. In addition, results published in April from the Comparison of Age-Related Macular Degeneration Treatment Trials (CATT) Research Group indicated that administration of ranibizumab, as needed, appeared to be as effective as monthly administration. The market is now set for a highly competitive period in which Avastin, Lucentis and Eylea (subject to marketing authorisation) will compete on price and position with specific market segmentation possible.