Regeneron Pharmaceuticals Inc. said Thursday that it has been subpoenaed by the U.S. Attorney's Office over its support of a nonprofit that provides financial assistance to patients taking Regeneron medications. The subpoena, issued in January by the U.S. Attorney's Office for the District of Massachusetts, called for documents on Regeneron's financial support of the nonprofit with regard to its own products and "certain other related documents and communications." Regeneron said it is cooperating with the investigation. The practice of funneling financial assistance through these nonprofits is widespread in the pharmaceutical industry, and other companies' use has come under scrutiny before. Though companies say the practice allows some patients free access to medications they can't afford, critics say it allows companies to maintain and increase high prices for drugs. Regeneron shares slumped 0.2% after the bell. Shares have dropped 14.0% over the last three months, compared with a 6.7% rise in the S&P 500 .
Copyright © 2017 MarketWatch, Inc.
Continue Reading Below