Shares in biotech giant Regeneron Pharmaceuticals (REGN) go under the microscope Thursday after the U.S. Department of Justice (DOJ) accused the company of manipulating Medicare’s 澳洲幸运5官方开奖结果体彩网:drug pricing reporting by inflating the average sales price of its best-selling eye disease drug Eylea.

The DOJ alleges that the drugmaker intentionally failed to report how it subsidized Eylea purchases by 澳洲幸运5官方开奖结果体彩网:reimbursing specialty distributors for credit-card processing fees. It argues Regeneron paid these fees to encourage drug distributors to accept credit cards from doctors and retina practices purchasing Eylea while continuing to charge physicians a lower price so they could receive 澳洲幸运5官方开奖结果体彩网:credit card rewards for their purchases, such as cash back promotions and other card loyalty incentives.

“The government alleges that Regeneron manipulated 澳洲幸运5官方开奖结果体彩网:Medicare’s drug pricing process, by knowingly failing to report its payment of credit card processing fees as price concessions to its customers,” Joshua Levy, Acting U.S. Attorney for the District of Massachusetts, said in a statement. “By doing so, Regeneron greatly inflated the costs of its drug to Medicare over many years and enhanced its revenues,” he added.

Regeneron responded to the DOJ's allegations in a statement, saying they were without merit and vowed to vigorously defend itself in court. It added that its reimbursements of costs incurred by specialty distributors were lawful.

The complaint comes amid an ongoing Eylea-related lawsuit filed against Regeneron in 2020, which alleges the pharmaceutical giant used a charity patient-assistance fund to encourage doctors to prescribe the drug over a less-expensive alternative. The company denies the accusations.

Apart from a deep 澳洲幸运5官方开奖结果体彩网:retracement below the 澳洲幸运5官方开奖结果体彩网:200-day moving average in July last year, the Regeneron share price has continued to trend mostly higher. More recently, the stock has pulled back from its record close of $993.35 set in late February, with 澳洲幸运5官方开奖结果体彩网:trading volume below average during the retracement.

Investors should monitor how the price responds to the $915 level, an area where the stock may find support from a nine-month trendline. A failure to hold this important level could see a retest of a key 澳洲幸运5官方开奖结果体彩网:horizontal line situated around $835.

Regeneron shares were down 0.9% at $928.00 at around 8:00 a.m. ET. Through Wednesday's close, the stock had gained about 14% over the past 12 months.

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As of the date this article was written, the author does not own any of the above securities.