REGENXBIO Faces FDA Clinical Hold on Gene Therapy RGX-111
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 28 2026
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Should l Buy RGNX?
Source: stocktwits
- FDA Clinical Hold: REGENXBIO's gene therapy RGX-111 for Hurler syndrome faces a clinical hold from the FDA due to a tumor case in a trial participant, causing shares to plummet approximately 30% in premarket trading, highlighting market sensitivity to FDA unpredictability.
- Analyst Perspectives: Clear Street analyst Bill Maughan reiterated a ‘Buy’ rating with a $50 price target, noting that the causality between RGX-111 and the tumor remains unestablished, and the patient was asymptomatic, suggesting the market's reaction may be an overreaction.
- Market Reaction: Despite the stock's decline post-announcement, Leerink views the selloff as excessive, believing that the financial impact of Hunter/Hurler syndrome on the company's fundamental value is modest, thus presenting a buying opportunity while maintaining an ‘Outperform’ rating.
- Future Outlook: Stifel also reaffirmed a ‘Buy’ rating with a $45 price target, expecting a delay in FDA approval for RGX-121, yet maintains that the risk-benefit profile for other gene therapies remains favorable.
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Analyst Views on RGNX
Wall Street analysts forecast RGNX stock price to rise
7 Analyst Rating
7 Buy
0 Hold
0 Sell
Strong Buy
Current: 8.350
Low
19.00
Averages
29.71
High
45.00
Current: 8.350
Low
19.00
Averages
29.71
High
45.00
About RGNX
REGENXBIO Inc. is a clinical-stage biotechnology company seeking to improve lives through the curative potential of gene therapy. The Company has developed a pipeline of gene therapy programs using its proprietary adeno-associated virus (AAV) gene therapy delivery platform (NAV Technology Platform) to address genetic diseases. It is focused on its internal development pipeline in three areas: retinal, neuromuscular, and neurodegenerative diseases. Its investigational AAV therapeutics include ABBV-RGX-314, RGX-202, RGX-121, and RGX-111. It is developing ABBV-RGX-314 in collaboration with AbbVie to treat large patient populations impacted by wet age-related macular degeneration, diabetic retinopathy (DR) and other chronic retinal diseases characterized by loss of vision. It is developing RGX-202 to treat Duchenne muscular dystrophy (Duchenne). The Company is developing RGX-121 to treat Mucopolysaccharidosis type II (MPS II), a progressive, neurodegenerative lysosomal storage disorder.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Lawsuit Background: Robbins LLP has filed a class action against REGENXBIO (NASDAQ: RGNX), alleging that the company misled investors about the efficacy of its gene therapy RGX-111 between February 9, 2022, and January 27, 2026, resulting in significant investor losses.
- FDA Clinical Hold: On January 28, 2026, the FDA placed a clinical hold on RGX-111 due to preliminary findings of a central nervous system tumor in a participant, raising serious safety concerns and further damaging investor confidence in the drug's viability.
- Stock Price Plunge: Following the FDA's announcement, REGENXBIO's stock price plummeted from $13.41 to $11.01 per share, marking a 17.8% decline in just one day, which reflects a growing pessimism among investors regarding the company's future prospects.
- Investor Action: Affected shareholders can submit their applications by April 14, 2026, to serve as lead plaintiffs in the class action, indicating a strong investor demand for accountability and improved corporate governance practices.
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- Lawsuit Background: A securities class action lawsuit has been filed in the U.S. District Court for Maryland on behalf of all individuals or entities who purchased REGENXBIO (NASDAQ: RGNX) securities between February 9, 2022, and January 27, 2026, alleging concealment of adverse facts regarding the RGX-111 trial.
- False Statements Allegation: The complaint claims that defendants provided overly positive statements to investors while disseminating false and misleading information, leading to significant losses when the FDA placed a clinical hold on RGX-111 on January 28, 2026.
- Stock Price Reaction: Following the announcement on January 28, REGENXBIO's stock price plummeted from $13.41 per share on January 27 to $11.01 per share, marking a 17.8% decline in just one day, reflecting strong market concerns about the company's future.
- Investor Action: Affected investors are urged to contact the law firm before the April 14, 2026 lead plaintiff motion deadline to discuss their rights and interests in the class action, highlighting investor concerns regarding corporate governance and transparency.
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- Class Action Initiated: REGENXBIO Inc. is facing a class action lawsuit led by Andre Kuik for allegedly providing false information to investors, covering securities transactions from February 9, 2022, to January 27, 2026, which could further damage the company's reputation and stock price.
- FDA Clinical Hold: On January 28, 2026, REGENXBIO announced that the FDA placed a clinical hold on its gene therapy RGX-111 due to the discovery of an intraventricular tumor in a trial participant, causing the stock price to plummet 17.8% in a single day from $13.41 to $11.01, indicating a severe loss of investor confidence in the company's future.
- Investor Loss Compensation: The law firm Levi & Korsinsky stated it would seek compensation for investors who suffered losses due to corporate misrepresentations, urging RGNX shareholders to apply as lead plaintiffs before the April 14, 2026 deadline, highlighting the potential financial implications of the legal action on the company.
- Law Firm's Credentials: Over the past 20 years, Levi & Korsinsky has secured hundreds of millions for aggrieved shareholders and has extensive experience in complex securities litigation, being ranked among the top securities litigation firms in the U.S. for seven consecutive years, showcasing its strength and influence in such cases.
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- FDA Chaos Impacts Approvals: The biotech sector had a strong performance in 2025, with the XBI index outperforming NVIDIA, yet ongoing chaos at the FDA may lead to longer drug approval cycles, increasing investment risks and affecting industry confidence.
- Executive Warns of Industry Risks: Former FDA oncology head Richard Pasdur warned at the JP Morgan conference that the breach between political appointees and drug reviewers could lead to inconsistent approval standards, creating uncertainty for biotech companies.
- Gene Therapy Approval Delays: Regenxbio's expected approval for a Hunter syndrome drug on February 8 is now unlikely due to a tumor found in a patient during clinical trials, indicating stricter FDA oversight on gene therapies and prompting investor caution.
- Twist Bioscience Shows Recovery: Twist Bioscience reported $104 million in revenue for Q1, despite remaining unprofitable, but reduced cash burn indicates a sustainable growth trend, attracting investor interest amid the biotech downturn.
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- FDA Response Letter Issued: REGENXBIO's shares fell after receiving a response letter from the FDA regarding its Hunter syndrome gene therapy, indicating regulatory concerns about trial design that could delay the approval timeline.
- Trial Design Concerns: The FDA's questioning of the trial design may impact the efficacy assessment of the therapy, negatively affecting REGENXBIO's market outlook and increasing uncertainty for investors.
- Approval Timeline Delayed: Due to the FDA's feedback, REGENXBIO may need to reevaluate its clinical trial plans, which will push back the originally scheduled approval timeline and affect the company's future revenue expectations.
- Negative Market Reaction: The stock price decline following the FDA's response letter reflects market concerns about REGENXBIO's future direction, potentially leading to decreased investor confidence and impacting its ability to raise funds.
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- FDA Approval Update: The FDA has accepted REGENXBIO's RGX-121 BLA under the accelerated approval pathway; however, the PDUFA goal date has been extended from November 9, 2025, to February 8, 2026, indicating the agency's cautious approach to expedited approvals.
- Reasons for CRL: The FDA issued a Complete Response Letter (CRL) for RGX-121, citing concerns regarding study eligibility criteria and the appropriateness of a surrogate endpoint, suggesting that new studies and long-term follow-ups may be necessary, which poses challenges in an ultra-rare disease population.
- Market Reaction: Despite regulatory hurdles, REGENXBIO's stock shows strong momentum in the market, with analysts maintaining a
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