Start here if you're new
what it is
Regeneron makes prescription drugs for eye disease, inflammation, cancer, heart disease, and rare illnesses.
how it gets paid
Last year Regeneron Pharm made $14.3B in revenue.
why it's growing
Revenue grew 1.0% last year. All in all, fourth-quarter adjusted earnings of $11.44 a share surpassed our estimate by $0.78, fueled in part by a roughly $140 million beat on.
what just happened
Regeneron posted $10.5B in quarterly revenue and $33.61 in EPS.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
60/100 earnings predictability — reasonably predictable
18.1x trailing p/e — priced about right
0.6% dividend yield — cash in your pocket every quarter
15.0% return on capital — nothing to write home about
xvary composite: 60/100 — average
What they do
Regeneron makes prescription drugs for eye disease, inflammation, cancer, heart disease, and rare illnesses.
Regeneron can lose $577 million in one eye franchise and still have a second version rising 66% to $506 million. That is not normal business life; that is product replacement in real time. You feel the difference when the old drug fades and the new drug starts paying the rent.
How they make money
$14.3B
annual revenue · their business grew +1.0% last year
total revenue
$14.3B
+1.0%
The products that matter
eye disease treatment
Eylea
$5.2B · largest franchise
this $5.2B franchise is still the biggest revenue contributor. That's exactly why a 52% drop in legacy Eylea during the quarter hit sentiment so hard.
flagship
inflammatory disease treatment
Dupixent
$4.8B · growth engine
this $4.8B product grew 35% in the quarter. It matters because it is doing real work offsetting slower parts of the portfolio.
+35%
next-generation eye treatment
Eylea HD
$506M last quarter · +66%
this newer version rose 66% to $506M in the quarter. It matters because the handoff inside the Eylea franchise is one of the main things deciding the stock from here.
handoff bet
Key numbers
$14.3B
annual revenue
This is the size of the business you are underwriting. A 1% revenue change is about $143 million.
18.1x
trailing p/e
You are paying 18.1 times trailing earnings, which is cheaper than a hype stock and still not cheap for a company with a shrinking legacy drug.
24.9%
operating margin
Nearly 25 cents of every sales dollar becomes operating profit, so the business still throws off real cash even while Eylea resets.
34%
upside to target
The analyst target sits 34% above $803.17, which means the market has not fully priced in the replacement story.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 60 / 100
- long-term debt $2.0B (2% of capital)
- net profit margin 34.4% — keeps 34 cents of every dollar in revenue
- return on equity 16% — $0.16 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in REGN 3 years ago → it's now worth $10,570.
The index would have given you $13,880.
source: institutional data · total return
What just happened
beat estimates
Regeneron posted $10.5B in quarterly revenue and $33.61 in EPS.
EDGAR shows a very large reported quarter, and Yahoo Finance says the last reported quarter came in at $11.44 versus $10.66 expected, a 7.32% beat. The split tells you the business is still moving a lot of money even while one legacy line shrinks.
$3.8B
revenue
$33.61
eps
147%
vs. last year growth
the number that mattered
The $10.5B revenue figure matters because it shows Regeneron can still post a huge quarter even with Eylea under pressure.
-
regeneron pharmaceuticals closed out 2025 on a somewhat positive note.
-
fourth-quarter comparisons continued to be pressured by sales erosion in the drugmaker’s legacy eylea franchise, reflecting lower volumes, increased competition, and the strategic shift toward the newer highdose version, eylea hd.
-
in total, eylea sales declined 52% from a year ago, to $577 million, while eylea hd sales rose 66%, to $506 million.
-
further mitigating these legacy headwinds was strong growth in eczema treatment dupixent (+35%) and cancer drug libtayo (+16%).
-
all in all, fourth-quarter adjusted earnings of $11.44 a share surpassed our estimate by $0.78, fueled in part by a roughly $140 million beat on the top line.
source: company earnings report, 2026
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What could go wrong
the #1 risk is the Eylea handoff from the legacy franchise to Eylea HD. You can see it in the quarter already: the old drug fell faster than the new one replaced it.
med
Eylea franchise erosion
legacy Eylea sales fell 52% to $577M, while Eylea HD rose 66% to $506M. Better is not the same as covered.
Product sales are 90% of revenue. If the eye franchise keeps shrinking faster than the upgrade cycle fills the gap, the whole growth story gets thinner.
med
Amgen patent lawsuit
Regeneron faces litigation in the United States District Court, Case No. 2:24-cv-264, filed September 12, 2025.
The case could put an estimated $2.1B–$3.6B of revenue at risk. That is not a footnote for a $14.3B company.
med
pipeline has to bridge the gap
the 2027 revenue estimate is $17B versus $14.3B today. That means roughly $2.7B of additional revenue still has to be earned by launches, expansions, or mix shift.
If new products or label expansions disappoint, the stock stops looking cheap and starts looking correctly cautious.
Between the Eylea reset, the patent case, and the need to grow from $14.3B to $17B in revenue, the next leg depends more on execution than on the market getting generous.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
legacy Eylea vs. Eylea HD
legacy Eylea fell 52% to $577M while HD rose 66% to $506M. You want the replacement math to stop looking upside down.
risk
Amgen patent lawsuit
the case filed on September 12, 2025 matters because the stated revenue exposure is $2.1B–$3.6B.
calendar
next earnings report
you want another clean read on whether the eye franchise drag is easing and whether the path toward $17B revenue still looks credible.
trend
Dupixent and Libtayo momentum
Dupixent grew 35% and Libtayo 16% in the quarter. If that slows while Eylea stays weak, the balance of the story changes fast.
Analyst rankings
earnings predictability
60 / 100
in human-speak, analysts think the business is profitable but not perfectly smooth — drug transitions still create real surprises.
price stability
60 / 100
the stock is steadier than small-cap biotech roulette, but it still moves when one product starts carrying the quarter on its back.
source: institutional data
Institutional activity
institutions have been net buying for 2 consecutive quarters — 637 buyers vs. 526 sellers in 3q2025. total institutional holdings: 87.6M shares. net buying for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$596
$1256
$803
current price
$1072
target midpoint · +34% from current · 3-5yr high: $1285 (+60% · 13% ann'l return)
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