Key Takeaways Regeneron expects Eylea sales to decline further in 2026 as biosimilars enter the U.S. market.Eylea HD sales rose 36% in 2025, supported by new FDA approvals and expanded dosing options.Growth in Dupixent and Libtayo, coupled with new oncology approvals, seeks to stabilize REGN's revenue base. Regeneron Pharmaceuticals (REGN) put up a decent performance for the fourth quarter of 2025 and full-year 2025 (reported last month) with overall revenues rising despite a continued decline in sales of i ...

Core Insights - Regeneron Pharmaceuticals reported Q4 2025 adjusted EPS of $11.44, exceeding the Zacks Consensus Estimate of $10.56, but down 5% from $12.07 in the previous year due to higher expenses [1][8] - Total revenues increased by 3% year over year to $3.9 billion, driven by higher sales of Eylea HD and increased profits from Dupixent, surpassing the Zacks Consensus Estimate of $3.8 billion [1][9] Financial Performance - Eylea sales in the U.S. fell 52% year over year to $577 million, primarily due to increased competition and market share loss, missing the Zacks Consensus Estimate of $592 million [5] - Eylea HD generated $506 million in the U.S., up 66% year over year, exceeding the Zacks Consensus Estimate of $477 million [9] - Total collaboration revenues reached $2 billion, a 22.6% increase from the previous year, beating the Zacks Consensus Estimate of $1.9 billion [9] - Sanofi's collaboration revenues rose 35% to $1.64 billion, driven by higher Dupixent sales, surpassing the Zacks Consensus Estimate of $1.6 billion [10] - Adjusted R&D expenses increased by 9% year over year to $1.3 billion, while adjusted SG&A expenses rose by 1% to $691 million [13] Product Developments - Eylea HD received FDA approval for additional indications, enhancing its market potential [7][17] - Dupixent was approved by the European Commission for chronic spontaneous urticaria, expanding its therapeutic applications [16] - Libtayo gained approval as an adjuvant treatment for cutaneous squamous cell carcinoma, broadening its market reach [19] Strategic Initiatives - Regeneron announced a new share repurchase program of up to $3 billion, with $1.5 billion remaining available as of December 31, 2025 [14] - The company is focusing on strengthening its oncology portfolio to diversify revenue streams, particularly following the label expansion of Libtayo [23] Market Position - Regeneron's shares have increased by 9.7% over the past year, compared to the industry's growth of 15.6% [2] - The company maintains a Zacks Rank 1 (Strong Buy), indicating strong market confidence [24]

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]

We recently compiled a list of the 20 Most Profitable Stocks of the Last 20 Years. Regeneron Pharmaceuticals, Inc. is among the most profitable stocks. TheFly reported on January 22 that Evercore ISI increased its price target for REGN to $875 from $750 and maintained an Outperform rating on the stock. The firm expressed confidence in REGN’s updated outlook and recent pricing actions. Evercore ISI identified Dupixent and Eylea HD as key players in the company’s growth and noted that both products are well ...

Core Viewpoint - Regeneron Pharmaceuticals is a leading biotechnology company focused on developing innovative medicines for serious diseases, competing with major players like Amgen and Biogen [1] Financial Performance - Regeneron is set to release its quarterly earnings on January 30, 2026, with an estimated EPS of $10.56 and revenue of approximately $3.78 billion, while the Zacks Consensus Estimate projects revenues at $3.82 billion [2] - Historically, Regeneron has exceeded earnings estimates in three of the last four quarters, with an average surprise of 21.81% [2] Product Focus - The upcoming earnings report will emphasize profits from the asthma drug Dupixent and sales of Eylea HD, with Eylea's legacy sales declining due to competition, but Eylea HD expected to boost overall franchise revenues [3] - Strong demand for Dupixent across multiple indications is anticipated to drive solid profit growth, offsetting the decline in Eylea sales [3] Stock Performance - Regeneron's stock has increased over 16% since the last analysis, reinforcing a Buy rating, although it is still trading below its all-time high of approximately $1,200 reached in August 2024 [4] - The earnings report could potentially drive the stock price higher if results exceed expectations, while a miss might lead to a decline in stock value [4] Valuation Metrics - Regeneron has a price-to-earnings (P/E) ratio of approximately 17, indicating investors are willing to pay $17 for every $1 of earnings [5] - The company's price-to-sales ratio stands at about 5.44, and the enterprise value to sales ratio is roughly 5.46, indicating consistent valuation metrics [5] - Regeneron demonstrates a solid financial position with a low debt-to-equity ratio of 0.087 and a strong current ratio of 4.06 [5][6]

Core Insights - Investors are focusing on profits from the asthma drug Dupixent and sales of Eylea HD as Regeneron Pharmaceuticals prepares to report its fourth-quarter 2025 results on January 30, 2026, with revenue estimates at $3.82 billion and earnings at $10.56 per share [1] Earnings Performance - Regeneron has a history of earnings surprises, beating estimates in three of the last four quarters with an average surprise of 21.81%, including a 25.32% beat in the last reported quarter [2] Earnings Prediction - The earnings model predicts a likely earnings beat for Regeneron, supported by a positive Earnings ESP of +0.82% and a Zacks Rank of 1 (Strong Buy) [3][4] Product Sales Overview - Eylea, a key revenue driver, has faced sales pressure due to competition from Vabysmo, with preliminary sales of $577 million in the U.S. for Q4 [5][6] - Eylea HD, a higher dose version, has seen strong initial uptake with sales of $506 million in the U.S. for the quarter, following FDA approval for new dosing options [7][8] Dupixent Performance - Dupixent is expected to show solid growth in Q4, driven by strong demand across multiple indications, likely offsetting the decline in Eylea sales [10] Diversification Strategy - Regeneron is working to diversify its revenue base beyond Eylea, focusing on building its oncology franchise, which includes Libtayo and the newly approved Lynozyfic [11] - Libtayo's sales growth has been bolstered by recent label expansions, with current sales estimates at $482 million [12] Share Repurchase Program - A decrease in outstanding shares due to a $3.0 billion share repurchase program is expected to positively impact the bottom line, with $2.156 billion remaining for repurchases as of September 30, 2025 [15] Stock Performance - Regeneron's shares have increased by 12.2% over the past year, compared to the industry's growth of 17.1% [16]

Core Insights - Chautauqua Capital Management's fourth-quarter 2025 investor letter highlights a strong performance in global equities, with international markets outperforming U.S. equities significantly, aided by a weaker dollar and improving trade conditions [1] - The Baird Chautauqua International Growth Fund returned +0.11% in Q4 2025, lagging behind the MSCI ACWI ex-U.S. Index's +5.05%, while the Global Growth Fund gained +4.18%, outperforming its MSCI ACWI Index® ND's +3.29% [1] - The fund remains focused on high-quality businesses with strong cash flows and balance sheets, despite near-term headwinds from sector rotations and profit-taking in Greater China [1] Company-Specific Insights - Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is highlighted as a biotechnology leader with a focus on innovative medicines for serious diseases, reporting a one-month return of approximately -0.30% and shares remaining about 12.42% above their 52-week high [2] - As of January 26, 2026, Regeneron's stock closed at approximately $762.65 per share, with a market capitalization of about $81.779 billion [2] - Regeneron reported strong Q3 2025 results, with top- and bottom-line beats driven by Dupixent and Eylea HD, and expects resolution of manufacturing issues in 2026 along with important pipeline data readouts [3] - Regeneron is not among the 30 Most Popular Stocks Among Hedge Funds, with 78 hedge fund portfolios holding the stock at the end of Q3, an increase from 73 in the previous quarter [3]

Regeneron Pharmaceuticals FY Conference Summary Company Overview - Regeneron Pharmaceuticals is recognized for its unique position in the biopharmaceutical industry, driven by a science-first strategy and the use of big data to develop transformative therapies [6][7] - The company has developed proprietary technology platforms such as VelocImmune and VelociAb, which enhance drug discovery and development efficiency [6][7] Pipeline and Product Portfolio - Regeneron's pipeline includes 45 clinical candidates across six major therapeutic areas, reflecting a commitment to addressing unmet medical needs [8] - The company has achieved 14 internally discovered therapy approvals over the past 15 years, averaging one new approval per year [8] Key Products - **Eylea HD**: - Fourth quarter 2025 U.S. net sales reached $1.1 billion, with Eylea HD sales at $506 million, a 66% increase year-over-year [9][10] - Label expansion includes every four-week dosing and treatment for macular edema following retinal vein occlusion [9][10] - **Dupixent**: - World's most widely used branded antibody with over 1.3 million patients treated globally [11] - Annualized global net sales exceed $19 billion, with a 27% year-over-year growth [11] - **Libtayo**: - Leading immunotherapy for advanced non-melanoma skin cancers, with significant growth potential in lung cancer [12] Research and Development Strategy - Regeneron plans to invest approximately $6 billion in R&D and over $7 billion in capital investments in the U.S. to support R&D and manufacturing capabilities [12] - The company focuses 95% of its R&D resources on internal initiatives, contrasting with the industry average of 50% [14] Business Development and Collaborations - Collaborations include in-licensing cemdisiran for generalized myasthenia gravis and HS-20094 for obesity [13] - The company emphasizes opportunistic share buybacks and initiated a modest dividend in 2025, returning $3.8 billion to shareholders [13] Clinical Programs and Innovations - Regeneron is advancing several key clinical programs, including: - **Immunology and Inflammation**: Developing long-acting antibodies for type 2 inflammatory conditions [18] - **Allergy Treatments**: Phase three programs for cat and birch allergies, and a novel approach to treat severe food allergies [19] - **Oncology**: A combination of LAG-3 antibody fianlimab with Libtayo shows promise in first-line metastatic melanoma [20] - **Complement Inhibition**: A combination of siRNA and antibody targeting C5 shows potential for treating paroxysmal nocturnal hemoglobinuria (PNH) [23][24] Market Opportunities - The global market opportunity for Regeneron's pipeline is estimated to exceed $200 billion [15] - The company is exploring innovative treatments in obesity, combining GLP-1 receptor agonists with PCSK9 antibodies to address cardiovascular risks [28] Future Outlook - Regeneron anticipates significant data readouts from ongoing clinical trials in 2026, with a focus on maintaining leadership in immunology and expanding into new therapeutic areas [20][27] - The company aims to redefine anticoagulation with Factor XI antibodies, targeting safer options for stroke prevention and other indications [26][43] Conclusion - Regeneron Pharmaceuticals is positioned for sustained growth through its innovative pipeline, strong R&D focus, and strategic collaborations, addressing significant unmet medical needs across various therapeutic areas [12][15]

Summary of Key Points from the Conference Call Industry Overview - **Sector**: Biotechnology within the Healthcare industry - **Performance**: The biotechnology sector (XBI) outperformed the S&P 500 in 2025, with a growth of +35% compared to +16% for the S&P 500, driven by macroeconomic factors, easing policy risks, and improving fundamentals [1][2] Core Insights and Arguments - **2026 Outlook**: Continued momentum is expected in 2026 due to ongoing market dynamics, easing policy risks, and improving fundamentals. Key drivers include M&A activities and strategic positioning in companies like AMGN and REGN, which have upside potential to FY26+ consensus estimates [1] - **Valuation Trends**: Biopharma valuations are currently low relative to expected profitability, indicating potential for multiple expansions [2] - **Obesity Market Dynamics**: The obesity market is anticipated to remain dynamic, with significant focus on the launch of oral medications, particularly NVO's oral Wegovy and LLY's orforglipron. The market is also seeing increased M&A interest, particularly in obesity-related assets [3][5] - **Cardiology Innovations**: A renaissance in cardiology R&D is expected, with key areas of focus including Lp(a) and Factor XIa anticoagulants, which could validate new cardiovascular drug classes [6] - **Oncology Developments**: 2026 may bring significant advancements in oncology, particularly with PD1/L1xVEGF bispecifics and cancer vaccines, which could improve efficacy across various tumor types [7][9] - **Immunology & Inflammation (I&I)**: The I&I sector is expected to see competition among both incumbents and new entrants, with a focus on high-efficacy medicines for conditions like IBD and psoriasis [11] Additional Important Insights - **M&A Activity**: Therapeutics M&A activity saw a notable increase in 2025, with a total dollar volume of approximately $108 billion, signaling a recovery and a trend expected to continue into 2026 [12] - **China's Role in Innovation**: China is emerging as a significant contributor to global drug innovation, with a notable share of clinically innovative drugs and licensing deals. This trend is supported by favorable regulatory and market conditions [19][20] - **Policy Developments**: Recent Most-Favored-Nation (MFN) drug pricing deals are expected to have limited long-term impact on growth trajectories for companies involved, but they may alleviate some policy overhang on biopharma stocks [21][24] - **Company-Specific Updates**: - **ALNY**: Expected to see strong growth in TTR franchise revenue, with a focus on pipeline updates and market dynamics [25][26] - **AMGN**: Anticipated to benefit from a strong late-stage pipeline and favorable policy developments, with expected revenue growth in cardiovascular and oncology segments [33][34] - **BIIB**: Positioned for potential inflection driven by pipeline developments, particularly in Alzheimer's and lupus treatments [40][41] This summary encapsulates the key points discussed in the conference call, highlighting the biotechnology sector's performance, strategic insights for 2026, and significant trends in innovation and policy.

Core Viewpoint - Analyst sentiment towards Regeneron Pharmaceuticals has shifted positively, with Bank of America upgrading the stock from Underperform to Buy and raising the price target from $627 to $860, driven by higher sales for key products [1] Group 1: Product Performance - The previous Underperform thesis on Eylea SD has largely played out, leading to lower consensus estimates, while the outlook for Eylea HD has improved due to multiple label expansions, with forecasts now significantly above consensus [2] - For 2026, U.S. Eylea franchise revenues are projected to reach $4.35 billion, indicating strong growth potential [3] Group 2: Pipeline and Collaborations - Additional upside is anticipated from Dupixent, in partnership with Sanofi, along with pipeline developments such as the Phase 3 fianlimab melanoma readout expected in the first half of 2026 [3] - A global collaboration with Tessera Therapeutics for TSRA-196, aimed at treating alpha-1 antitrypsin deficiency, was announced in December 2025, highlighting ongoing innovation [4][5] Group 3: Market Sentiment and Stock Performance - Regeneron shares experienced a 4.60% increase, reaching $812.27, marking a new 52-week high, reflecting positive market sentiment [6] - Anticipated positive updates from a competitor conference in January and a likely favorable resolution regarding Regeneron's Most Favored Nation discussions with the White House could further enhance stock performance [4]