April 24 (Bloomberg) -- Regeneron Pharmaceuticals Inc., maker of the eye medicine Eylea, will replace MetroPCS Communications Inc. in the Standard & Poor’s 500 Index, S&P said in a statement today.
The change will take place after the close of trading on April 30, S&P said. The revisions in the benchmark equity index may prompt money managers to shift holdings to match the index. About $5.58 trillion was benchmarked to the S&P 500, according to the S&P website.
The announcement was made after the close of regular trading. Regeneron shares climbed 2.7 percent to $216.39 at 6:23 p.m. New York time. MetroPCS slipped 0.2 percent to $11.75.
MetroPCS is merging with Deutsche Telekom AG’s T-Mobile USA Inc. in a transaction that is expected to leave the combined company’s public float below the 50 percent threshold needed for inclusion in the index, S&P said. MetroPCS shareholders approved the sweetened deal today in a vote that gives Deutsche Telekom a chance to revive its U.S. business.
Regeneron, based in Tarrytown, New York, received approval in November 2011 for Eylea to treat wet age-related macular degeneration, a leading cause of blindness for the elderly. The company’s revenue more than tripled to $1.4 billion in 2012 from a year earlier.
Eagle Materials Inc., a building products supplier, will take Regeneron’s spot in the S&P MidCap 400, also on April 30. Francesca’s Holdings, operator of a chain of retail boutiques, will replace Eagle Materials in the S&P SmallCap 600, S&P said.
CST Brands Inc. will move to the mid-cap index on May 1, the day its spin-off from Valero Energy Corp. is expected to close, S&P said. Valero will retain its membership in the S&P 500.
Northern Oil & Gas Inc. will be added to the small-cap index and Dolan Co. is slated for removal from the gauge, according to the statement from S&P.
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