Regeneron (REGN) AI Stock Analysis

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Regeneron

(NASDAQ:REGN)

75Outperform

Regeneron exhibits a strong financial foundation and promising pipeline developments, which contribute positively to its stock score. However, technical indicators and recent challenges, including declining EYLEA sales and regulatory delays, temper the overall outlook. The stock's valuation appears reasonable, but limited income from dividends is a consideration for income-focused investors.

Positive Factors

Financial Performance

Combined peak sales of Dupixent and Itepekimab in COPD are projected to exceed €5bn.

Pipeline Potential

The upcoming Phase 3 data for Itepekimab in COPD is seen as a key catalyst to reinvigorate Regeneron's pipeline narrative.

Valuation

Regeneron shares are considered attractive at a price-to-earnings ratio of 14 times the estimated 2026 earnings per share and an expected 5-year earnings growth of 12%.

Negative Factors

Competitive Dynamics

Biosimilar competition, lack of patient assistance charity funding, Vabysmo competition, and inventory destocking all contributed to a worse-than-expected print for Eylea.

Earnings Impact

Total revenues came in light, as did EPS, driven by Eylea franchise with REGN citing familiar dynamics such as competition and net price.

Regulatory Delays

FDA delayed approval of Eylea HD pre-filled syringe due to manufacturing issues, creating uncertainty around its future availability.

Regeneron (REGN) vs. S&P 500 (SPY)

Market Cap

$60.30B

Dividend Yield0.16%

Average Volume (3M)1.18M

Price to Earnings (P/E)15.4

Beta (1Y)0.65

Revenue Growth7.52%

EPS Growth15.65%

CountryUS

Employees15,158

SectorHealthcare

Sector Strength53

IndustryBiotechnology

Share Statistics

EPS (TTM)8.22

Shares Outstanding106,148,350

10 Day Avg. Volume1,354,731

30 Day Avg. Volume1,177,583

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.08

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit5.30

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$801.75

Price Target Upside42.93% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering20

Regeneron Business Overview & Revenue Model

Company DescriptionRegeneron Pharmaceuticals, Inc. discovers, invents, develops, manufactures, and commercializes medicines for treating various diseases worldwide. The company's products include EYLEA injection to treat wet age-related macular degeneration and diabetic macular edema; myopic choroidal neovascularization; and diabetic retinopathy, as well as macular edema following retinal vein occlusion, including macular edema following central retinal vein occlusion and macular edema following branch retinal vein occlusion. It also provides Dupixent injection to treat atopic dermatitis and asthma in adults and pediatrics; Libtayo injection to treat metastatic or locally advanced cutaneous squamous cell carcinoma;Praluent injection for heterozygous familial hypercholesterolemia or clinical atherosclerotic cardiovascular disease in adults; REGEN-COV for covid-19; and Kevzara solution for treating rheumatoid arthritis in adults. In addition, the company offers Inmazeb injection for infection caused by Zaire ebolavirus; ARCALYST injection for cryopyrin-associated periodic syndromes, including familial cold auto-inflammatory syndrome and muckle-wells syndrome; and ZALTRAP injection for intravenous infusion to treat metastatic colorectal cancer; and develops product candidates for treating patients with eye, allergic and inflammatory, cardiovascular and metabolic, infectious, and rare diseases; and cancer, pain, and hematologic conditions. It has collaboration and license agreements with Sanofi; Bayer; Teva Pharmaceutical Industries Ltd.; Mitsubishi Tanabe Pharma Corporation; Alnylam Pharmaceuticals, Inc.; Roche Pharmaceuticals; and Kiniksa Pharmaceuticals, Ltd., as well as has an agreement with the U.S. Department of Health and Human Services, as well as with Zai Lab Limited; Intellia Therapeutics, Inc.; Biomedical Advanced Research Development Authority; and AstraZeneca PLC. The company was incorporated in 1988 and is headquartered in Tarrytown, New York.

How the Company Makes MoneyRegeneron generates revenue primarily through the sale of its proprietary pharmaceutical products. Key revenue streams include product sales, especially from its flagship drugs like EYLEA and Dupixent, which are distributed globally. Additionally, the company engages in strategic collaborations and partnerships with other pharmaceutical companies, such as Sanofi, which contribute to its earnings through shared profits and milestone payments. Regeneron also earns revenue from royalties and licensing agreements, as well as research and development services provided to partners.

Regeneron Key Performance Indicators (KPIs)

Any

Revenue by Segment

Revenue by Segment
Shows how much revenue each business unit or product line generates, highlighting which areas drive growth and profitability, and where the company may need to focus its strategic efforts.

Chart InsightsRegeneron's Net Product revenue shows a steady recovery post-2022, driven by strategic product launches like EYLEA HD, despite competitive pressures. Collaboration revenue is also rebounding, reflecting strong partnerships. The earnings call highlights robust growth from key products and a promising pipeline, though increased R&D and SG&A expenses may weigh on margins. The introduction of a dividend and share buyback plan underscores confidence in sustained growth and shareholder value. Investors should watch for competitive dynamics around EYLEA and regulatory challenges that could impact future performance.

Data provided by:

Main Street Data

Regeneron Financial Statement Overview

Summary

Regeneron displays a robust financial profile with strong profitability, a solid balance sheet, and effective cash flow management. Consistent margins and low leverage ensure stability and resilience in the biotechnology industry.

Income Statement

―

Regeneron's income statement shows strong profitability with a consistent gross profit margin of over 85% and a net profit margin of approximately 32% in the TTM period. Despite a slight decline in revenue from the previous year, the company maintains robust EBIT and EBITDA margins, indicating efficient operations.

Balance Sheet

The balance sheet reveals a solid financial position with a low debt-to-equity ratio, indicating prudent financial management. The equity ratio remains strong at over 78% in the TTM, reflecting financial stability. High levels of cash and short-term investments further bolster Regeneron's financial strength.

Cash Flow

―

Regeneron demonstrates solid cash flow management with a high operating cash flow to net income ratio, indicating effective conversion of earnings into cash. Although there is a slight decline in free cash flow growth, the company maintains a healthy free cash flow to net income ratio, ensuring liquidity and flexibility.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
14.20B	13.12B	12.17B	16.07B	8.50B
	Gross Profit
12.23B	11.30B	10.61B	13.63B	7.38B
	EBIT
3.99B	4.05B	4.74B	8.95B	3.58B
	EBITDA
5.32B	4.69B	5.34B	9.28B	3.90B
	Net Income Common Stockholders
4.41B	3.95B	4.34B	8.08B	3.51B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.01B	10.84B	14.33B	12.53B	6.72B
	Total Assets
37.76B	33.08B	29.21B	25.43B	17.16B
	Total Debt
2.70B	2.70B	2.70B	2.70B	2.70B
	Net Debt
216.20M	-27.10M	-404.50M	-185.90M	502.00M
	Total Liabilities
8.41B	7.11B	6.55B	6.67B	6.14B
	Stockholders Equity
29.35B	25.97B	22.66B	18.77B	11.03B
Cash Flow		Free Cash Flow
3.66B	3.67B	4.42B	6.53B	2.00B
	Operating Cash Flow
4.42B	4.59B	5.01B	7.08B	2.62B
	Investing Cash Flow
-2.47B	-3.19B	-3.78B	-5.38B	-70.60M
	Financing Cash Flow
-2.20B	-1.79B	-1.01B	-1.01B	-1.97B

Regeneron Technical Analysis

Technical Analysis Sentiment

Negative

Last Price560.93

Price Trends

50DMA

627.02

Negative

100DMA

664.46

Negative

200DMA

831.16

Negative

Market Momentum

MACD

-10.49

Negative

RSI

41.34

Neutral

STOCH

43.60

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REGN, the sentiment is Negative. The current price of 560.93 is below the 20-day moving average (MA) of 577.65, below the 50-day MA of 627.02, and below the 200-day MA of 831.16, indicating a bearish trend. The MACD of -10.49 indicates Negative momentum. The RSI at 41.34 is Neutral, neither overbought nor oversold. The STOCH value of 43.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for REGN.

Regeneron Risk Analysis

Regeneron disclosed 45 risk factors in its most recent earnings report. Regeneron reported the most risks in the “Tech & Innovation” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Regeneron Peers Comparison

Overall Rating

UnderperformOutperform

Sector (52)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GMAB	81 Outperform	$13.02B	11.54	23.16%	―	30.43%	82.29%
INCY	75 Outperform	$11.54B	184.44	0.47%	―	17.13%	-88.78%
REGN	75 Outperform	$60.30B	15.36	15.96%	0.16%	7.52%	15.65%
ARGX	71 Outperform	$39.69B	47.27	17.33%	―	78.01%	―
ALNY	64 Neutral	$35.18B	―	-414.62%	―	17.21%	21.16%
BNTX	58 Neutral	$25.18B	―	-3.87%	―	0.58%	-764.64%
Sector *	52 Neutral	$5.23B	3.70	-41.86%	2.84%	16.58%	-0.16%

* Healthcare Sector Average

Performance Comparison

REGN

Regeneron

560.93

-405.83

-41.98%

ALNY

Alnylam Pharma

276.55

125.18

82.70%

INCY

Incyte

59.55

6.05

11.31%

ARGX

Argenx Se

622.93

240.38

62.84%

GMAB

Genmab

20.60

-8.21

-28.50%

BNTX

BioNTech SE

92.80

0.74

0.80%

Regeneron Earnings Call Summary

Earnings Call Date:Apr 29, 2025

(Q1-2025)

% Change Since: -8.17%|

Next Earnings Date:Jul 31, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed picture with strong growth in key products like Dupixent and promising pipeline advancements. However, significant challenges were highlighted, including a decline in EYLEA sales, regulatory delays for EYLEA HD, and issues with patient assistance funding. Financial stability remains strong, but the balance of highlights and lowlights points to ongoing challenges that need to be addressed.

Q1-2025 Updates

Positive Updates

Strong Growth in Dupixent Sales

First quarter 2025 net product sales for Dupixent grew 20% globally on a constant currency basis compared to the first quarter of 2024. In the U.S., sales grew 19%.

Libtayo's Market Performance

Libtayo in the U.S. grew 21% compared to the first quarter of last year and has increased its share in the lung cancer market.

Pipeline Advancements

Regeneron's pipeline includes approximately 45 product candidates with significant investments in R&D. Anticipated U.S. regulatory approvals for several drugs in 2025.

Sanofi Collaboration Revenue

Revenues from the Sanofi collaboration were approximately $1.2 billion, with Regeneron's share of profits growing 27% versus the prior year.

Positive Financial Position

Regeneron generated $816 million in free cash flow in the first quarter and ended the quarter with cash and marketable securities of $17.6 billion.

Negative Updates

Decline in EYLEA Sales

First quarter 2025 U.S. net sales for EYLEA were $736 million, down 39% compared to the first quarter of last year, with competitive pressures and funding gaps affecting performance.

FDA Complete Response Letter for EYLEA HD

The FDA issued a complete response letter for the EYLEA HD pre-filled syringe, with regulatory delays impacting the product's approval.

Challenges with Patient Assistance Foundations

An ongoing funding gap at patient assistance foundations negatively impacted the branded anti-VEGF category, increasing the share of low-cost off-label repackaged Avastin.

Higher Inventory Write-offs

First quarter 2025 gross margin was negatively impacted by higher inventory write-offs and a changing product mix.

Company Guidance

During Regeneron's First Quarter 2025 earnings call, guidance was provided on several key metrics and business areas. EYLEA's U.S. net sales were reported at $736 million, reflecting a 39% year-over-year decline, impacted by increased competition and reduced wholesale inventory levels. However, EYLEA HD saw a 54% increase in U.S. sales to $307 million. Dupixent's global net sales grew by 20% year-over-year, reaching $3.7 billion, driven by robust demand across approved indications. Libtayo's U.S. sales rose 21% to $193 million, with its global sales growing 8% to $285 million. Regeneron highlighted an updated 2025 gross margin guidance range of 86% to 87%, reflecting higher-than-expected inventory write-offs. The company also discussed its continued investment in R&D, with approximately 45 product candidates in clinical development and anticipated data readouts and regulatory approvals expected throughout the year.

Regeneron Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy

Regeneron Highlights Growth and Innovation at Conference

Positive

Jan 13, 2025

Regeneron presented significant business updates at the J.P. Morgan Healthcare Conference, highlighting progress across its clinical pipeline and market performance. The announcement included key advancements such as the expansion of Dupixent’s usage in treating chronic diseases, the continued leadership of EYLEA in the U.S. anti-VEGF category, and Libtayo’s groundbreaking results in high-risk cutaneous squamous cell carcinoma. Additionally, Regeneron’s pipeline is poised for future growth with promising candidates targeting a commercial market expected to exceed $220 billion by 2030, underscoring its strategic positioning in the industry.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.