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Regeneron (REGN)
NASDAQ:REGN

Regeneron (REGN) AI Stock Analysis

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Regeneron

(NASDAQ:REGN)

Rating:72Outperform
Price Target:
$583.00
▲(4.15%Upside)
Regeneron's robust financial performance and strong product pipeline are key strengths, contributing positively to the overall score. However, technical analysis indicates bearish momentum, and the challenges highlighted in the earnings call, such as declining EYLEA sales, present significant risks. Fair valuation supports the score but does not overshadow existing challenges.
Positive Factors
FDA Approvals
FDA approval of linvoseltamab for adult patients with relapsed or refractory multiple myeloma is expected to boost the company's prospects.
Patent Protection
New Dupixent US patent extends protection to September 2033, safeguarding it from biosimilar competition and supporting the company's market position.
Pipeline Potential
The investment community underappreciates the potential for REGN’s novel blood thinner programs, which have peak potential sales of $40B if they can generate the same efficacy as existing therapies with less bleeding risk.
Negative Factors
Eylea Sales Pressure
The mix of branded and biosimilar competition as well as patient affordability will continue to pressure Eylea sales.
Investor Concerns
Investor concerns remain due to the lack of a randomized controlled trial for the monthly dosing of Eylea HD.
Market Competition
The 4L+ MM market is crowded with several approved and investigational therapies.

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

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 pharmaceutical products, with key revenue streams including sales of EYLEA, Dupixent, and Libtayo. The company benefits from strategic collaborations and partnerships with other pharmaceutical firms to co-develop and commercialize certain drugs, which contribute to its earnings through royalties and shared profits. Additionally, Regeneron engages in research and development collaborations with partners like Sanofi, which help fund its innovation pipeline and expand its market reach. The company's financial performance is also bolstered by its proprietary VelociSuite technologies, which enhance drug discovery and development efficiency, thus leading to potential licensing opportunities.

Regeneron Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Shows how revenue is distributed across different business units, highlighting which areas are driving growth and which might need strategic adjustments.
Chart InsightsRegeneron's 'Net Product' revenue shows resilience with a steady upward trend, despite a recent dip in early 2025. This aligns with strong growth in Dupixent and Libtayo sales, as highlighted in the earnings call. However, the decline in EYLEA sales due to competitive pressures and regulatory delays poses a risk. The 'Collaboration' segment remains robust, supported by increased profits from the Sanofi partnership. Overall, while the company faces challenges, its diverse product pipeline and strategic collaborations provide a solid foundation for future growth.
Data provided by:Main Street Data

Regeneron Earnings Call Summary

Earnings Call Date:Apr 29, 2025
(Q1-2025)
|
% Change Since: -8.23%|
Next Earnings Date:Aug 01, 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 Financial Statement Overview

Summary
Regeneron demonstrates strong financial health with robust profitability, a solid balance sheet, and effective cash flow management. The company maintains high margins and low leverage, ensuring stability and resilience.
Income Statement
85
Very Positive
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
88
Very Positive
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
83
Very Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue14.09B14.20B13.12B12.17B16.07B8.50B
Gross Profit11.96B12.23B11.30B10.61B13.63B7.38B
EBITDA4.98B5.32B4.69B5.34B9.28B3.90B
Net Income4.50B4.41B3.95B4.34B8.08B3.51B
Balance Sheet
Total Assets37.55B37.76B33.08B29.21B25.43B17.16B
Cash, Cash Equivalents and Short-Term Investments8.35B9.01B10.84B14.33B12.53B6.72B
Total Debt2.70B2.70B2.70B2.70B2.70B2.70B
Total Liabilities8.16B8.41B7.11B6.55B6.67B6.14B
Stockholders Equity29.39B29.35B25.97B22.66B18.77B11.03B
Cash Flow
Free Cash Flow3.02B3.66B3.67B4.42B6.53B2.00B
Operating Cash Flow3.95B4.42B4.59B5.01B7.08B2.62B
Investing Cash Flow-133.50M-2.47B-3.19B-3.78B-5.38B-70.60M
Financing Cash Flow-3.34B-2.20B-1.79B-1.01B-1.01B-1.97B

Regeneron Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price559.76
Price Trends
50DMA
547.93
Positive
100DMA
594.83
Negative
200DMA
702.87
Negative
Market Momentum
MACD
2.69
Negative
RSI
60.39
Neutral
STOCH
81.63
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REGN, the sentiment is Neutral. The current price of 559.76 is above the 20-day moving average (MA) of 528.71, above the 50-day MA of 547.93, and below the 200-day MA of 702.87, indicating a neutral trend. The MACD of 2.69 indicates Negative momentum. The RSI at 60.39 is Neutral, neither overbought nor oversold. The STOCH value of 81.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (46)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$13.10B212.620.47%17.13%-88.78%
72
Outperform
$59.14B13.9415.96%0.64%7.52%15.65%
72
Outperform
$13.20B12.2722.69%25.11%46.46%
68
Neutral
$33.22B40.5517.33%78.01%
66
Neutral
$41.40B-414.62%17.21%21.16%
58
Neutral
$26.87B-3.87%0.58%-764.64%
46
Neutral
C$200.35M-3.25-23.22%2.71%21.07%-1.26%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
REGN
Regeneron
559.76
-517.53
-48.04%
ALNY
Alnylam Pharma
322.64
61.62
23.61%
INCY
Incyte
70.34
8.05
12.92%
ARGX
Argenx Se
563.31
101.59
22.00%
GMAB
Genmab
21.86
-4.38
-16.69%
BNTX
BioNTech SE
113.92
29.22
34.50%

Regeneron Corporate Events

Executive/Board ChangesShareholder Meetings
Regeneron Shareholders Approve Key Proposals at 2025 Meeting
Neutral
Jun 18, 2025

At the 2025 Annual Meeting of Shareholders held on June 13, Regeneron Pharmaceuticals’ shareholders voted on several key proposals. The election of Class I directors was confirmed, with nominees set to serve until the 2028 meeting. The appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025 was ratified. Additionally, an advisory vote approved the executive compensation package. A significant amendment to declassify the board of directors was passed, while proposals to eliminate supermajority vote requirements for certain amendments to the company’s Certificate of Incorporation were not approved.

The most recent analyst rating on (REGN) stock is a Hold with a $940.00 price target. To see the full list of analyst forecasts on Regeneron stock, see the REGN Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 01, 2025