Regeneron Pharmaceuticals
REGN
$790.74
-0.70%
Regeneron Pharmaceuticals is a fully integrated biotechnology company that discovers, develops, and commercializes medicines across eye disease, immunology and inflammation, cardiovascular disease, oncology, and hematology, with a commercial portfolio anchored by Eylea/Eylea HD (partnered with Bayer), Dupixent (partnered with Sanofi), Libtayo, Praluent, Kevzara, and Lynozyfic. Regeneron is best characterized as a science-driven, platform-based biologics leader — its proprietary VelocImmune and VelociSuite technologies have generated one of the industry's most productive antibody pipelines, and its unusually high-margin collaboration economics with Sanofi and Bayer have historically funded aggressive internal R&D without meaningful leverage. The current investor debate centers on pipeline durability versus concentration risk: a May 2026 Phase 3 oncology combination failure triggered a sharp single-day drawdown, while the subsequent rebound to near 52-week highs reflects renewed confidence in Dupixent expansion, Eylea HD conversion, and the broader pipeline. With roughly $80 billion in market capitalization, a 31% net margin, and a forward P/E near 13x, the stock sits at the center of a value-versus-growth argument — bulls point to a mid-teens revenue grower trading at a discount to biotech peers, while bears flag Eylea erosion, partner-dependent revenue, and binary clinical risk.…
REGN
Regeneron Pharmaceuticals
$790.74
Related headlines
REGN 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Regeneron Pharmaceuticals's 12-month outlook, with a consensus price target around $863.93 and implied upside of +9.3% versus the current price.
Average Target
$863.93
0 analysts
Implied Upside
+9.3%
vs. current price
Analyst Count
—
covering this stock
Price Range
$730 - $1030
Analyst target range
Coverage is deep and constructive: 27 analysts cover REGN with a consensus recommendation of "buy" (mean rating 1.82 on a 1-5 scale where 1 is Strong Buy), and the average target price of $863.93 implies +9.3% upside from the current $790.74. The consensus leans bullish but not aggressively so — the mean rating of 1.82 sits between Buy and Strong Buy, yet the recent institutional ratings flow is dominated by neutral actions: RBC Capital reiterated Sector Perform on 2026-09-29, Leerink reiterated Market Perform on 2026-08-17, Citigroup and Morgan Stanley maintained Neutral/Equal Weight in early August, while HSBC (Buy), Guggenheim (Buy), Cantor Fitzgerald (Overweight), and Truist (Buy) remain positive. The pattern of reiterations rather than upgrades or downgrades suggests analysts are waiting for pipeline catalysts — particularly oncology readouts and Eylea HD conversion data — before changing their stance. The target range is wide, from a low of $730.00 (roughly 7.7% below the current price) to a high of $1,030.00 (+30.3% upside), a spread of $300 or about 35% of the average target, which signals meaningful disagreement about the company's trajectory. The high target likely assumes Dupixent expansion into new indications, successful Eylea HD conversion, pipeline wins that restore oncology credibility after the May 2026 Phase 3 failure, and multiple expansion toward peer biotech levels; the low target of $730 prices in Eylea erosion, partner-related revenue pressure, and continued clinical setbacks. Consensus revenue of $22.49 billion (range $19.82-$24.34 billion) and EPS of $80.25 (range $67.84-$88.82) frame the fundamental debate — the wide EPS range of $21 per share reflects genuine uncertainty about margin durability and pipeline contribution, and with the stock trading at 12.77x forward earnings against a $863.93 average target, the risk/reward skews modestly positive but requires patience for catalysts to materialize.
Bulls vs Bears: REGN Investment Factors
The bull case rests on a hard valuation argument: 12.77x forward earnings for a business growing revenue 16.73% YoY with 86.56% gross margins, a near-zero debt load, and $3.5 billion in TTM free cash flow is historically cheap for large-cap biotech. The bear case is equally concrete: collaboration revenue of $2.455 billion exceeds product revenue of $1.642 billion, the May 2026 Phase 3 failure proved pipeline risk is real, and the stock has lagged SPY by 10.07 points YTD despite its strong trailing-year number. On balance the bull evidence is currently stronger because the valuation discount is quantifiable and the balance sheet removes solvency risk, while the bear points are largely about timing and sentiment. The single most important tension is whether Dupixent expansion and Eylea HD conversion can grow collaboration revenue fast enough to offset Eylea erosion and justify the $80.25 consensus EPS — if that number is met, the 12.77x forward multiple is too cheap; if it slips toward the $67.84 low estimate, the discount is deserved.
Bullish
- Forward PE of 12.8x is deep discount: REGN trades at 12.77x forward earnings versus a trailing P/E of 17.92x, a 29% compression that implies the market expects roughly 40% EPS growth toward the $80.25 consensus. Large-cap biotech peers typically command 25-40x trailing earnings, so the stock screens as a clear value outlier despite 86.56% gross margins.
- Revenue re-accelerating to high teens: Q2 2026 revenue of $4.291 billion grew 16.73% YoY, following Q1 2026's 19.0% YoY growth from $3.029 billion. The two most recent quarters confirm a mid-to-high-teens cadence after the soft Q4 2025 print of just +2.5% YoY.
- Fortress balance sheet with heavy buybacks: Debt-to-equity of 0.0866, a current ratio of 4.13, interest coverage above 129x, and $1.107 billion in cash give REGN virtually no financial risk. The company repurchased $1.169 billion of stock in Q2 2026 alone while still generating $3.522 billion in TTM free cash flow.
- Analyst consensus buy with 9.3% upside: 27 analysts carry a mean rating of 1.82 (between Buy and Strong Buy) with an average target of $863.93 versus the $790.74 price. The high target of $1,030 implies 30.3% upside if Dupixent expansion and Eylea HD conversion deliver.
Bearish
- Partner-dependent revenue concentration: Collaboration revenue of $2.455 billion is the largest line, ahead of $1.642 billion in product revenue, meaning REGN's economics hinge on profit-sharing with Sanofi (Dupixent) and Bayer (Eylea). This structure caps control over pricing and exposes margins to partner disputes or renegotiation.
- Binary clinical risk already realized: The May 2026 Phase 3 oncology combination failure drove the stock from ~$698 to ~$630 in a single session, contributing to a 26.05% maximum drawdown over the period. With a ~$1.6 billion quarterly R&D budget, further pipeline setbacks remain a live, recurring risk.
- Earnings volatility from non-operating items: Net margin swung from 38.89% in Q3 2025 to 21.74% in Q4 2025 and 20.17% in Q1 2026 before recovering to 30.23% in Q2 2026, driven largely by other income ($736.5 million in Q3 2025 versus $107.3 million in Q2 2026). This makes headline EPS an unreliable signal of core operating performance.
- YTD laggard despite trailing-year strength: REGN's YTD change of just +1.86% badly trails SPY's +11.93%, a relative strength gap of -10.07 points, and the 6-month change of +5.35% versus SPY's +7.48% shows a mid-year stall. The trailing-year outperformance masks a stock that has been dead money for much of 2026.
REGN Technical Analysis
REGN is in a sustained, choppy uptrend: the stock is up 38.93% over the trailing year versus a 15.53% gain for SPY, a relative strength advantage of 23.40 percentage points, and at $790.74 it sits at roughly 76.7% of its 52-week range ($566.11 low to $859.34 high). That positioning is constructive but not euphoric — the shares are about 8.0% below the 52-week high, meaning momentum has room to run before overextension becomes a concern, yet the stock is far above the low, so this is not a falling-knife value setup either. The 26.05% maximum drawdown over the period underscores that the uptrend has been punctuated by violent air pockets rather than a smooth grind higher. Recent momentum is positive but decelerating: the 1-month change of +2.08% and 3-month change of +16.85% both lag the 1-year gain, and the 6-month change of just +5.35% reveals a mid-year stall. The 1-month relative strength of 0.86 versus SPY's +1.22% means REGN slightly underperformed the market over the past month, while the 3-month relative strength of +14.16 shows the stock's recovery from the May 2026 Phase 3 oncology disappointment (which drove a drop from ~$698 to ~$630 in mid-May) has been forceful. The 6-month relative strength of -2.13 and YTD relative strength of -10.07 versus SPY's +11.93% YTD gain confirm the stock has been a laggard for much of 2026 despite the strong trailing-year number — a divergence that argues for mean-reversion caution rather than blind momentum-chasing. Key levels are well defined: support sits at the $566.11 52-week low, with intermediate support around the $600-$630 zone where the May-June 2026 base formed, while resistance is the $859.34 52-week high, with the $840-$852 area (August-September 2026 highs) acting as the immediate ceiling. A breakout above $859 would signal a fresh leg higher and likely draw trend-followers, whereas a breakdown below $600 would invalidate the recovery structure and reopen the lows. Volatility context is critical: the reported beta of 0.153 implies the stock has historically moved with only ~15% of the market's volatility, an extraordinarily low reading for a biotech that likely reflects idiosyncratic, event-driven price action rather than true low risk — position sizing should account for gap risk from clinical readouts, not just the beta statistic.
Beta
0.15
0.15x market volatility
Max Drawdown
-26.1%
Largest decline past year
52-Week Range
$573-$859
Price range past year
Annual Return
+38.9%
Cumulative gain past year
| Period | REGN Return | S&P 500 |
|---|---|---|
| 1m | +2.1% | +0.2% |
| 3m | +16.9% | +2.9% |
| 6m | +5.4% | +8.4% |
| 1y | +38.9% | +14.9% |
| ytd | +1.9% | +11.9% |
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REGN Fundamental Analysis
Revenue is growing at a healthy clip: Q2 2026 revenue of $4.291 billion rose 16.73% year over year from $3.676 billion in Q2 2025, and the sequential trajectory from Q1 2026's $3.605 billion (+19.0% YoY versus Q1 2025's $3.029 billion) confirms acceleration rather than deceleration. The Q4 2025 quarter at $3.884 billion (+2.5% YoY versus Q4 2024's $3.789 billion) was the soft spot, showing the business is not immune to quarterly lumpiness, but the two most recent quarters re-established a mid-to-high-teens growth cadence. Segment disclosure shows collaboration revenue of $2.455 billion as the largest line, ahead of product revenue of $1.642 billion and other product/service revenue of $193.3 million — a mix that highlights the company's dependence on profit-sharing economics from Sanofi (Dupixent) and Bayer (Eylea) rather than wholly owned product sales, which is both a margin advantage and a strategic concentration risk. Profitability is robust and improving: Q2 2026 net income of $1.297 billion on a 30.23% net margin and an 86.56% gross margin, with operating income of $1.421 billion (33.11% operating margin) and EBITDA of $1.663 billion (38.75% EBITDA margin). Gross margin has been stable in the 81%-87% band across the last eight quarters (Q1 2026 dipped to 81.43% before recovering), while net margin has been more volatile — 38.89% in Q3 2025, 21.74% in Q4 2025, 20.17% in Q1 2026, and 30.23% in Q2 2026 — driven largely by swings in other income (Q3 2025 benefited from $736.5 million in other income versus just $107.3 million in Q2 2026). The balance sheet is fortress-like: debt-to-equity of 0.0866, a current ratio of 4.13, interest coverage above 129x in the most recent quarter, and $1.107 billion in cash at the end of Q2 2026. Free cash flow is substantial at $3.522 billion TTM, though quarterly FCF has been uneven ($334.3 million in Q2 2026 versus $848.3 million in Q1 2026 and $1.418 billion in Q3 2025), reflecting working-capital swings and heavy buyback activity — $1.169 billion repurchased in Q2 2026 alone. ROE of 14.41% and ROA of 6.53% are solid for a company that funds a ~$1.6 billion quarterly R&D budget internally; the capital expenditure coverage ratio of 2.39x and operating cash flow of $574.5 million in Q2 2026 confirm the business generates more than enough cash to self-fund growth, buy back stock, and pay its modest dividend (payout ratio 8.2%, yield 0.46%).
Quarterly Revenue
$4.3B
2026-06
Revenue YoY Growth
+16.7%
YoY Comparison
Gross Margin
86.6%
Latest Quarter
Free Cash Flow
$3.5B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is REGN Overvalued?
Because Regeneron is solidly profitable — Q2 2026 net income of $1.297 billion and trailing EPS of $12.59 — the PE ratio is the appropriate primary metric, and the trailing P/E of 17.92x against a forward P/E of 12.77x is the single most important valuation signal in this dataset. The 29% compression between trailing and forward multiples implies the market expects earnings to grow roughly 40% over the next twelve months, consistent with consensus EPS estimates of $80.25 (versus the current quarterly run-rate of ~$12.59), and that gap is the crux of the bull case: investors are paying ~13x forward earnings for a business growing revenue at ~17%. The PS ratio of 5.63x and EV/Sales of 4.78x are moderate for a high-margin biotech, while the PEG ratio of 3.38 looks elevated only because it is computed off a depressed trailing base. Against the broader Biotechnology industry, REGN screens as a clear value outlier: a trailing P/E of 17.92x versus the sector's typical 25-40x range for large-cap biotech, a PS of 5.63x versus sector norms well into double digits, and an EV/EBITDA of 13.81x that is modest for a company with 38.75% EBITDA margins. The premium/discount question is really a discount question — the market is pricing in Eylea erosion, partner concentration, and pipeline binary risk, and the 12.77x forward multiple embeds skepticism that Dupixent growth and new launches can offset those headwinds. Historical context reinforces the point: REGN's own P/E history over the past several years has ranged from roughly 7.5x (Q4 2021) to 36.2x (Q1 2024), with the current 17.92x sitting near the middle of that band but well below the 2024 peak — and the PS ratio of 5.63x is near the low end of its historical 13.5x-33.2x range, suggesting the market is applying a historically conservative multiple to a business whose margins (86.56% gross, 30.23% net) remain near record highs.
PE
17.9x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 8x~28x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
13.8x
Enterprise Value Multiple
Investment Risk Disclosure
Financial and operational risk centers on revenue concentration and earnings quality rather than solvency. Collaboration revenue of $2.455 billion dwarfs product revenue of $1.642 billion, so a shift in Sanofi or Bayer profit-sharing terms would hit the largest line directly. Net margin has been erratic — 38.89% in Q3 2025, 21.74% in Q4 2025, 20.17% in Q1 2026, 30.23% in Q2 2026 — largely because other income swung from $736.5 million to $107.3 million, meaning headline EPS can disappoint even when operations are stable. Quarterly free cash flow is also uneven ($334.3 million in Q2 2026 versus $1.418 billion in Q3 2025), and R&D runs at roughly $1.6 billion per quarter, so any revenue air pocket compresses margins quickly.
Market and competitive risk is dominated by Eylea erosion and valuation sentiment. The stock's reported beta of 0.153 implies only ~15% of market volatility, but that statistic understates event risk — the May 2026 Phase 3 oncology failure produced a single-day drop from ~$698 to ~$630, and the 26.05% maximum drawdown shows how violent the air pockets can be. At 12.77x forward earnings the multiple already embeds skepticism, so the risk is less about compression from a premium and more about a value trap: if Eylea HD conversion stalls or Dupixent growth decelerates, the discount persists rather than closes. Competitive pressure in immunology is intensifying, evidenced by AbbVie's $10.9 billion Apogee Therapeutics deal extending its immunology dominance, and the stock's YTD relative strength of -10.07 versus SPY shows the market has been rotating away from this name.
The worst-case scenario is a second pipeline failure combined with Eylea erosion and a downward revision to the $80.25 consensus EPS toward the $67.84 low estimate. In that chain, the forward multiple would likely stay depressed near current levels while the earnings base shrinks, driving the stock toward the $730 analyst low (about -7.7%) and potentially to the $566.11 52-week low, a decline of roughly -28.4% from $790.74. The May-June 2026 base around $600-$630 is the first real support shelf; a break below $600 would invalidate the recovery structure and reopen the lows. Investors should size positions for gap risk from clinical readouts, not for the 0.153 beta.