Will Eylea Sales Decline Weigh on REGN's Top Line in 2026?

Core Insights - Regeneron Pharmaceuticals (REGN) reported a solid performance for Q4 2025 and full-year 2025, with overall revenues increasing despite a significant decline in sales of its flagship product, Eylea [1] Eylea Performance - Eylea sales in the U.S. fell by 42% to $2.7 billion in 2025, driven by competitive pressures, market share loss to compounded bevacizumab, and patient transitions to Eylea HD [2] - Eylea remains Regeneron's largest revenue contributor, but declining sales are impacting overall revenues [3] - Eylea HD, a higher-dose formulation, saw sales increase by 36% to $1.6 billion in the U.S. in 2025, as Regeneron aims to defend its market share [5][10] Competitive Landscape - Roche's Vabysmo has intensified competition, achieving sales growth of 12% to CHF 4.1 billion in 2025 [4] - Regeneron introduced Eylea HD to improve durability and extend dosing intervals in response to competitive pressures [4] Future Projections - Eylea sales are expected to decline further in 2026, particularly in the second half of the year as multiple biosimilars enter the U.S. market [5][10] - Eylea HD is gaining traction due to steady label expansions, with recent FDA approvals enhancing its market position [6][7] Other Revenue Streams - Regeneron's revenue is bolstered by its share of profits from global Dupixent sales, which continue to grow due to strong demand across various indications [8] - Libtayo, Regeneron's PD-1 inhibitor, generated $1.4 billion in sales in 2025, reflecting a 19% year-over-year increase [11] Oncology Developments - The oncology portfolio received a boost with the FDA's accelerated approval of linvoseltamab-gcpt for relapsed or refractory multiple myeloma [12] - The European Commission approved Ordspono for relapsed or refractory follicular lymphoma or diffuse large B-cell lymphoma, further strengthening Regeneron's oncology franchise [13] Pipeline and Future Approvals - Regeneron has a robust pipeline, with additional drug approvals expected to support revenue growth [13] - The company submitted a biologics license application for DB-OTO, a gene therapy for profound genetic hearing loss, with a decision expected in H1 2026 [14] - Regeneron is also pursuing approval for garetosmab for fibrodysplasia ossificans progressiva and expanding its obesity-focused pipeline [15]