Regeneron falls after PTAB rules against Eylea patent claims (update)
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Update 2:20pm: Adds RBC analyst comment.
Regeneron (NASDAQ:REGN) fell 1.2% 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 "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 â338 patent suggested that the Regeneron (REGN) could lose the patent.
Regeneron had $5.8 billion in sales for Eylea in the U.S. last year, according to Bloomberg. In Q3 2022, sales were ~$1.63B.
Regeneron (REGN) has been preparing for biosimilar versions of Eylea by developing a high-dose version of the medication. It has patented it with an expiration in 2039. 
RBC analyst Brian Abrahams in a note on Wednesday after the PTAB ruling said he didn't expect any "material change to sentiment, numbers, or the stock" as the loss was mostly anticipated. He has a sector perform and $700 price target on Regeneron (REGN). 
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.