Regeneron’s CEO and co-chair said he agreed with President Donald Trump’s view that European nations should pay more for new drugs.
Leonard Schleifer’s remarks on Regeneron’s second-quarter earnings call on Friday were some of the first public comments from a pharmaceutical industry executive following
Trump’s letters to drugmakers
demanding “most favored nation” pricing within 60 days.
Regeneron, and Schleifer specifically, were on the receiving end of those letters, which were posted Thursday afternoon.
“I have been, and the company has been, outspoken that we agree with the president that the Europeans are not paying their fair share of innovation, and some way that needs to change,” Schleifer said on the earnings call. “It’s complicated and it does have to be done at a trade and policy level, because it can’t be done at an individual company level. It’s very difficult.”
He added that “the solution is simply not to lower cost prices in the US without some equilibrating in Europe, because then there’ll be no innovation.”
Trump’s letters signaled the latest push to get drugmakers to bring their US prices in line with what they charge in other developed countries. But Schleifer said it raises questions over future partnerships between American and European pharmaceutical companies.
“I suspect a lot of new contracts will have to deal with the contingency of what happens if you license something to Europe,” Schleifer said.
Regeneron has multiple products approved in other countries and relies on partners to help commercialize them
.
Schleifer pointed to the company’s blockbuster eye drug Eylea as an example.
“We don’t control the pricing of Eylea outside of the United States. That’s controlled by Bayer,” he said.
Asked by an analyst if he’d been down to Trump’s Mar-a-Lago “a lot” of times to influence policy, Schleifer replied that he has “not been down there frequently.” The chief executives of Eli Lilly and Pfizer have traveled to Trump’s estate in Florida multiple times, the analyst noted.
“The president probably knows Regeneron and my first name given that it was the Regeneron cocktail for Covid that may have saved his life,” Schleifer said. “Beyond that, I don’t have any great insights to the policies.”
Elsewhere on the earnings call, Regeneron said it
received a complete response letter
for a bispecific antibody and that additional approvals of Eylea HD will likely be delayed because of an FDA inspection at a manufacturing site in Indiana.
Schleifer and chief scientific officer George Yancopoulos also repeatedly shielded questions about the amount of money that Regeneron spends on R&D, with about $5 billion anticipated to be spent this year.
“The excitement or enthusiasm of those” Phase 3 programs and other pipeline assets, “is always being limited by people wanting to know what’s going to happen with Eylea and so forth, so I think our pipeline would be viewed very differently if it was viewed in isolation because of the incredible potential and opportunities,” Yancopoulos said.
Schleifer said the company has a broad pipeline of 45 development programs, including work across lymphoma, myeloma, complement-mediated diseases, geographic atrophy, myasthenia gravis and thrombotic diseases.
A Phase 2 trial of one of those assets, REGN7257, was discontinued in aplastic anemia. But the asset remains in Regeneron’s pipeline as the drugmaker continues to “evaluate next steps,” a spokesperson said in an emailed statement to
Endpoints News
.
Schleifer asked for more attention on the Regeneron pipeline.
“It’s hard for any one analyst, or any one analyst team, to look at 45 programs. If you’ve got 10 different companies, and the other nine have two programs each, you could consume all the time. That’s maybe why it doesn’t get as much attention as we’d like,” Schleifer said.
The Regeneron CEO also noted the company has focused historically on internal R&D given its bustling research engine. Regeneron has made relatively few acquisitions compared to its pharmaceutical peers.
“We want the best stuff for patients and so we go outside and look and look and look, and occasionally we do find stuff, and if we have to do it, we have a lot of flexibility to do it,” Schleifer said. “But to us, it’s not a lifeline like it is for so many companies.”
Regeneron bought a London ocular biotech called
Oxular
for undisclosed terms in January. It tried buying 23andMe, but was outbid
by the genetic testing company’s founder
.