Regeneron Posts Lower Eylea Sales Amid Rising Competition, Plans $2 Billion New Factory

Financial Performance - Regeneron Pharmaceuticals reported fourth-quarter adjusted earnings of $11.44 per share, a decrease of 5% year-over-year, surpassing the consensus estimate of $10.71 [1] - The company achieved sales of $3.88 billion, reflecting a 3% year-over-year increase, exceeding the consensus of $3.79 billion [1] Eylea Performance - U.S. net sales for Eylea HD and Eylea fell by 28% year-over-year to $1.08 billion, with $506 million from Eylea HD and $577 million from Eylea [2] - The FDA approved Eylea HD for macular edema following retinal vein occlusion, allowing for dosing every 8 weeks after an initial monthly period [2][3] Collaboration Revenue and New Investments - The increase in the company's share of profits from antibody commercialization was primarily driven by higher profits from Dupixent sales [4] - Regeneron plans to invest approximately $2 billion to develop a bulk manufacturing facility in Saratoga Springs, New York, in addition to over $7 billion in ongoing and planned domestic investments [4][5] Outlook - The company expects a fiscal 2026 GAAP gross margin of 79%–80% and an adjusted gross margin of 83%–84% [6] - Forecasted adjusted R&D expenses for 2026 are between $5.9 billion and $6.1 billion, with non-GAAP SG&A expenditures projected between $2.5 billion and $2.65 billion [6] - At the time of publication, Regeneron shares were down 0.32% at $747.05 [6]