Regeneron rises after FDA's extended decision date for eye drug comes ahead of expectations

Shares of drugmaker Regeneron REGN.O rise 3.5% to $591.78

U.S. FDA has extended the target action dates for two applications of the high-dose version of REGN's eye disease drug, Eylea, to the fourth quarter

Earlier this month, REGN said it expected a delay due to an inspection at contract manufacturer Catalent's site, which was acquired by Danish drugmaker Novo Nordisk NOVOb.CO

This outcome is an improvement on expectations, with investors likely anticipating longer timelines for regulatory decisions - BMO Capital Markets

This development is also positive for Scholar Rock SRRK.O, which produces its drug for a rare neuromuscular disease at the affected facilities - BMO

Shares of SRRK, which is expecting FDA's decision on the experimental drug for spinal muscular atrophy by September 22, gain 12.90% to $34.01

REGN shares down 17%, while SRRK stock fell 21%, YTD