RGNX Stock On Track For Worst Day Ever As Big Q1 Loss, Cash Concerns Eclipse Duchenne Trial Success

• REGENXBIO, however, noted that the U.S. Food and Drug Administration recommended a randomized controlled trial for the drug in recent discussions, raising cash concerns.
• Cash, cash equivalents, and marketable securities stood at $150.5 million at Q1-end, which the firm expects to be sufficient to fund its operations into early 2027.
• Both Q1 revenue and earnings fell short of Wall Street expectations on Thursday.

Shares of REGENXBIO Inc. (RGNX) dropped 37% on Thursday after the company reported disappointing first-quarter 2026 (Q1) financial results that overshadowed positive pivotal late-stage trial data for its lead Duchenne muscular dystrophy candidate RGX-202.

The stock is on track for its worst day ever, if losses hold.

RGNX’s Q1 Earnings

The company reported that revenue for the three months ended March 31 plunged to $6.4 million from $89.0 million a year earlier, and below an analyst estimate of $25.25 million. The steep decline was driven by the absence of a $70 million upfront license payment recognized in Q1 2025 under the Nippon Shinyaku collaboration and lower royalties from Novartis’ ZOLGENSMA after U.S. patent expiration in January 2026.

REGENXBIO swung to a net loss of $90.1 million, or $1.72 per share, compared with net income of $6.1 million, or $0.12 per share, in the prior-year quarter. Wall Street, on average, had estimated a loss of only $1.3/ share.

Cash, cash equivalents, and marketable securities stood at $150.5 million at quarter-end, which the firm expects to be sufficient to fund its operations into early 2027.

DMD Trial Readout

In a separate announcement, REGENXBIO reported strong results from its main late-stage trial of RGX-202 for Duchenne muscular dystrophy. Duchenne muscular dystrophy (DMD) is a severe, progressive genetic disorder characterized by muscle degeneration and weakness, primarily affecting young boys.

The study met its main goal. Ninety-three percent of patients produced high levels of the needed muscle protein after 12 weeks, averaging 71%.

One-year data from some patients showed meaningful improvements in movement and muscle function compared to untreated boys. The treatment was generally safe, with two serious side effects that resolved, Regenxbio said.

The results support plans for an accelerated approval filing and subsequent launch in 2027, the firm said. REGENXBIO, however, noted that the U.S. Food and Drug Administration recommended a randomized controlled trial for the drug in recent discussions, which could add uncertainty to the timeline, though the company remains optimistic and plans further FDA discussions.

How Did RGNX Retail Traders React?

On Stocktwits, retail sentiment around RGNX stock increased from ‘bullish’ to ‘extremely bullish’ territory over the past 24 hours, while message volume increased from ‘high’ to ‘extremely high’ levels.

A Stocktwits user expressed hopes for the stock recovering after the “overreaction.” The user sees the company’s market cap touching $1 billion in time, up from its current near $330 million market cap now.

Another user expressed hopes for Novartis buying the company.

Another user highlighted that the company doesn’t seem to have enough cash to conduct another trial if the FDA insists.

RGNX stock has fallen by about 23% over the past 12 months. 

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