Regeneron Pharmaceuticals, Inc. is at the forefront of revolutionizing healthcare, transforming how we treat debilitating diseases. With groundbreaking therapies like EYLEA and Dupixent, Regeneron not only enhances the quality of life for patients but also sets new standards in the biotechnology sector. Known for its commitment to innovation and quality, the company continues to expand its product portfolio and collaborations. As we delve into an investment analysis, one must consider whether Regeneron’s robust fundamentals justify its current market valuation and growth trajectory.
Table of contents
Company Description
Regeneron Pharmaceuticals, Inc. is a prominent player in the biotechnology industry, focusing on the discovery, development, and commercialization of innovative medicines for various diseases. Founded in 1988 and headquartered in Tarrytown, New York, the company has made significant strides with products like EYLEA for ocular conditions and Dupixent for atopic dermatitis and asthma. Operating primarily in the U.S. and expanding globally, Regeneron showcases a balanced portfolio between biologics and small molecules across therapeutic areas such as oncology, ophthalmology, and rare diseases. With strategic collaborations and a commitment to research, Regeneron is positioned at the forefront of biotechnology innovation, shaping the future of healthcare through its cutting-edge therapies.
Fundamental Analysis
In this section, I will conduct a fundamental analysis of Regeneron Pharmaceuticals, Inc., covering the income statement, financial ratios, and dividend payout policy.
Income Statement
The following table presents the Income Statement for Regeneron Pharmaceuticals, Inc. (REGN) over the last five fiscal years, highlighting key financial metrics for evaluation.
| Metric | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | 8.50B | 16.07B | 12.17B | 13.12B | 14.20B |
| Cost of Revenue | 1.36B | 2.72B | 1.71B | 2.24B | 1.97B |
| Operating Expenses | 3.56B | 4.40B | 5.08B | 6.52B | 8.24B |
| Gross Profit | 7.14B | 13.35B | 10.47B | 10.87B | 12.23B |
| EBITDA | 4.10B | 9.67B | 5.26B | 4.69B | 5.32B |
| EBIT | 3.87B | 9.38B | 4.92B | 4.27B | 4.84B |
| Interest Expense | 0.06B | 0.06B | 0.06B | 0.07B | 0.06B |
| Net Income | 3.51B | 8.08B | 4.34B | 3.95B | 4.41B |
| EPS | 32.65 | 76.40 | 40.51 | 37.05 | 40.90 |
| Filing Date | 2021-02-08 | 2022-02-07 | 2023-02-06 | 2024-02-05 | 2025-02-05 |
Interpretation of Income Statement
Over the five-year period, Regeneron has shown a consistent upward trend in Revenue, increasing from 8.50B in 2020 to 14.20B in 2024. Notably, the Net Income also reflects positive growth, peaking at 8.08B in 2021 before stabilizing around 4.4B in the last two years. The Gross Profit margin has remained relatively stable, indicating effective cost management despite rising operating expenses. In 2024, while Revenue increased, the margin pressures are evident as Operating Expenses surged, suggesting potential caution for future profitability. Overall, the company is on a solid growth trajectory, but investors should monitor expense management closely.
Financial Ratios
The following table summarizes the financial ratios for Regeneron Pharmaceuticals, Inc. (REGN) over the most recent years.
| Financial Ratios | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net Margin | 41.35% | 50.25% | 35.64% | 30.14% | 31.07% |
| ROE | 31.86% | 43.03% | 19.14% | 15.22% | 15.03% |
| ROIC | 22.80% | 34.86% | 18.44% | 13.81% | 10.89% |
| P/E | 14.80 | 8.27 | 17.81 | 23.70 | 17.42 |
| P/B | 4.71 | 3.56 | 3.41 | 3.61 | 2.62 |
| Current Ratio | 3.63 | 3.56 | 5.06 | 5.69 | 4.73 |
| Quick Ratio | 2.91 | 3.07 | 4.29 | 4.94 | 3.95 |
| D/E | 0.24 | 0.14 | 0.12 | 0.10 | 0.07 |
| Debt-to-Assets | 15.71% | 10.61% | 9.25% | 8.17% | 7.16% |
| Interest Coverage | 62.86 | 156.14 | 90.67 | 59.57 | 72.30 |
| Asset Turnover | 0.50 | 0.63 | 0.42 | 0.40 | 0.38 |
| Fixed Asset Turnover | 2.64 | 4.62 | 3.23 | 3.16 | 3.09 |
| Dividend Yield | 0 | 0 | 0 | 0 | 0 |
Interpretation of Financial Ratios
Analyzing Regeneron Pharmaceuticals, Inc. (REGN) based on the 2024 fiscal year, I observe several strong financial ratios. The liquidity ratios are robust, with a current ratio of 4.73 and a quick ratio of 3.95, indicating excellent short-term financial health. The solvency ratio of 0.58 suggests a solid capital structure, with low debt levels (debt-to-assets ratio at 0.072). Profitability remains notable, highlighted by a net profit margin of 31.07% and an EBITDA margin of 44.98%, although the decreasing trend in margins may warrant monitoring. Efficiency ratios, such as the asset turnover at 0.38, indicate moderate utilization of assets. Overall, while the ratios are strong, potential concerns arise from the declining profitability margins over the past year, necessitating further analysis.
Evolution of Financial Ratios
Over the past five years, Regeneron Pharmaceuticals’ financial ratios have shown a mixed trend. While liquidity ratios have generally improved, profitability margins have declined, indicating potential challenges in maintaining strong profit levels despite increasing revenues.
Distribution Policy
Regeneron Pharmaceuticals, Inc. does not currently pay dividends, which is indicative of its aggressive reinvestment strategy aimed at supporting ongoing research and development. The company is in a high growth phase, prioritizing investments that could yield substantial returns over the long term. Regeneron also engages in share buybacks, reflecting its commitment to returning value to shareholders. This approach aligns with sustainable long-term value creation, as it allows for capital allocation toward high-impact opportunities.
Sector Analysis
Regeneron Pharmaceuticals, Inc. operates in the biotechnology sector, known for its innovative medicines like EYLEA and Dupixent, facing competition from major players such as Amgen and Biogen.
Strategic Positioning
Regeneron Pharmaceuticals, Inc. (REGN) holds a significant position in the biotechnology sector, particularly with its flagship products like EYLEA and Dupixent. The company commands a substantial market share in the ophthalmology and allergic disease markets, driven by its innovative therapies. However, competitive pressure from both established players and emerging biotech firms continues to intensify, especially in the context of rapid technological advancements. Moreover, potential disruptions from novel therapies and treatment modalities necessitate a vigilant approach to maintain its competitive edge. Overall, Regeneron must continue to innovate and adapt to sustain its market position amidst these challenges.
Revenue by Segment
The pie chart illustrates Regeneron Pharmaceuticals’ revenue distribution across different segments for the fiscal year 2024.
In 2024, Regeneron’s revenue was primarily driven by Product sales at $7.63B, followed by Collaboration Revenue at $6.06B, and Other Products and Services at $515M. Notably, Collaboration Revenue experienced a significant increase from $5.50B in 2023, reflecting a growing partnership strategy. However, the Product segment’s growth has begun to stabilize, indicating potential margin pressures or market saturation risks ahead. This mix suggests a robust foundation but highlights the need for continued innovation and strategic collaboration to maintain momentum.
Key Products
Regeneron Pharmaceuticals, Inc. offers a diverse range of innovative products aimed at addressing various medical conditions. Below is a summary of their key products:
| Product | Description |
|---|---|
| EYLEA | An injection used to treat wet age-related macular degeneration and various forms of diabetic macular edema. |
| Dupixent | An injection for the treatment of atopic dermatitis and asthma in both adults and pediatric patients. |
| Libtayo | An injection designed to treat metastatic or locally advanced cutaneous squamous cell carcinoma. |
| Praluent | An injection for managing heterozygous familial hypercholesterolemia or clinical atherosclerotic cardiovascular disease. |
| REGEN-COV | A treatment option for COVID-19, providing monoclonal antibody therapy. |
| Kevzara | A solution for the treatment of rheumatoid arthritis in adults. |
| Inmazeb | An injection for treating infections caused by Zaire ebolavirus. |
| ARCALYST | An injection for managing cryopyrin-associated periodic syndromes, including familial cold auto-inflammatory syndrome. |
| ZALTRAP | An injection for intravenous infusion to treat metastatic colorectal cancer. |
These products highlight Regeneron’s commitment to developing therapies that address critical health challenges across various medical fields.
Main Competitors
The biotechnology sector is competitive, with several key players vying for market share. Below is a table of Regeneron Pharmaceuticals, Inc. and its main competitors, sorted by descending market capitalization.
| Company | Market Cap |
|---|---|
| Regeneron Pharmaceuticals, Inc. | 74.2B |
| Elevance Health Inc. | 73.5B |
| Cigna Corporation | 70.9B |
| Cencora, Inc. | 65.8B |
| Alnylam Pharmaceuticals, Inc. | 60.5B |
| IDEXX Laboratories, Inc. | 57.0B |
| argenx SE | 55.1B |
| Zoetis Inc. | 52.3B |
| United Therapeutics Corporation | 21.9B |
| Incyte Corporation | 20.1B |
| Genmab A/S | 19.6B |
The main competitors in the biotechnology industry, particularly in the United States, include major firms like Elevance Health and Cigna, which highlight the diverse applications and competitive offerings in healthcare solutions.
Competitive Advantages
Regeneron Pharmaceuticals, Inc. (REGN) boasts several competitive advantages that position it strongly within the biotechnology sector. Its robust pipeline of innovative therapies, such as EYLEA and Dupixent, underscores its commitment to addressing unmet medical needs. The company’s established partnerships with industry leaders like Sanofi and AstraZeneca enhance its market reach and resource capabilities. Looking ahead, Regeneron is exploring new therapeutic areas and expanding into emerging markets, presenting notable growth opportunities. These factors, combined with its strong financial performance and a resilient business model, contribute to a positive long-term outlook.
SWOT Analysis
The following SWOT analysis provides insights into Regeneron Pharmaceuticals, Inc. and helps evaluate its strategic position.
Strengths
- Strong product pipeline
- Robust collaborations
- High market cap of 74.2B
Weaknesses
- Dependence on key products
- Market competition
- Regulatory hurdles
Opportunities
- Expansion in global markets
- New drug approvals
- Increasing demand for innovative therapies
Threats
- Patent expirations
- Pricing pressures
- Economic downturns
Overall, Regeneron Pharmaceuticals has a solid foundation with significant strengths and growth opportunities, but it must navigate weaknesses and external threats effectively to optimize its strategy and maintain competitiveness in the biotechnology industry.
Stock Analysis
In analyzing Regeneron Pharmaceuticals, Inc. (REGN), we observe significant price movements and trading dynamics over the past year, marked by a notable decline in stock value and fluctuations in trading volumes.
Trend Analysis
Over the past year, REGN’s stock has experienced a percentage change of -23.02%, indicating a bearish trend. This trend is characterized by acceleration, suggesting that the downward momentum is strengthening. The stock reached a high of 1199.12 and a low of 490.28, which reflects considerable volatility, as evidenced by a standard deviation of 205.35.
Volume Analysis
In the last three months, REGN has seen a total trading volume of 445.55M, with buyer-driven activity accounting for approximately 50.47% of the volume. Notably, the volume trend is increasing, with recent data indicating a strongly buyer-dominant sentiment, as buyers accounted for 70.5% of the volume in the latest period. This suggests a growing interest among investors, despite the overall downward price trend.
Analyst Opinions
Recent analyst recommendations for Regeneron Pharmaceuticals, Inc. (REGN) indicate a consensus to “buy.” Analysts, including those from reputable firms, have given an overall score of 4, reflecting strong fundamentals. The discounted cash flow score is particularly impressive at 5, suggesting robust future cash generation. The return on equity and return on assets scores are also high, at 4 and 5, respectively, indicating efficient management. While the price-to-earnings score is lower at 2, the overall sentiment remains positive, reinforcing a buy recommendation for investors considering this stock in 2025.
Stock Grades
Regeneron Pharmaceuticals, Inc. (REGN) has received consistent evaluations from various reputable grading companies. Below is a summary of the recent stock ratings:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Canaccord Genuity | Maintain | Buy | 2025-12-04 |
| BMO Capital | Maintain | Outperform | 2025-12-04 |
| Morgan Stanley | Downgrade | Equal Weight | 2025-12-03 |
| Scotiabank | Maintain | Sector Perform | 2025-11-24 |
| Wells Fargo | Maintain | Equal Weight | 2025-11-20 |
| UBS | Maintain | Neutral | 2025-11-07 |
| B of A Securities | Maintain | Underperform | 2025-10-29 |
| Guggenheim | Maintain | Buy | 2025-10-29 |
| RBC Capital | Maintain | Sector Perform | 2025-10-29 |
| Wells Fargo | Maintain | Equal Weight | 2025-10-29 |
Overall, the trend in grades for REGN shows a mix of stability with several maintain ratings, yet a notable downgrade from Morgan Stanley to Equal Weight. This suggests that while some analysts remain positive about the stock, others are taking a more cautious stance, indicating potential volatility in the near future.
Target Prices
The consensus target prices for Regeneron Pharmaceuticals, Inc. (REGN) indicate a range of expectations among analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 1,057 | 584 | 770.47 |
Overall, analysts project a target price consensus of approximately 770.47, reflecting a positive outlook within the established range.
Consumer Opinions
Consumer sentiment surrounding Regeneron Pharmaceuticals, Inc. (REGN) reveals a mix of appreciation for its innovative treatments and concerns over pricing.
| Positive Reviews | Negative Reviews |
|---|---|
| “Regeneron’s drugs have transformed my life.” | “The prices are exorbitant and unaffordable.” |
| “Excellent customer service and support.” | “I faced issues with reimbursement from my insurer.” |
| “Their research and development are top-notch.” | “Lack of transparency in clinical trial results.” |
Overall, consumer feedback highlights Regeneron’s strong innovation and customer support but raises concerns about drug pricing and reimbursement processes.
Risk Analysis
In assessing Regeneron Pharmaceuticals, Inc. (REGN), it’s crucial to consider the various risks that could affect its performance. Below is a summary of potential risks.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Regulatory Risk | Changes in regulations affecting drug approval processes. | High | High |
| Market Competition | Increased competition from other biotech firms. | Medium | High |
| Product Liability | Risks associated with adverse effects from products. | Low | Very High |
| R&D Failures | Potential failures in clinical trials impacting pipeline. | Medium | High |
| Supply Chain Issues | Disruptions in supply chain affecting production. | Medium | Medium |
The most significant risk for REGN appears to be regulatory changes and product liability, which could have considerable implications for its market position and financial health.
Should You Buy Regeneron Pharmaceuticals, Inc.?
Regeneron Pharmaceuticals, Inc. (REGN) exhibits strong profitability with a net profit margin of 31.07% and an impressive return on invested capital (ROIC) of 10.89%, surpassing its weighted average cost of capital (WACC) of 5.39%, indicating value creation. The company maintains a solid balance sheet with total debt at 2.70B, translating to a debt-to-equity ratio of 0.033, reflecting prudent debt management. Recent fundamentals show positive growth, with a revenue increase of 10.06% year-over-year, while the current rating stands at an “A”, suggesting robust performance relative to peers.
Favorable signals
The analysis indicates several favorable elements for Regeneron Pharmaceuticals, Inc. The company enjoys a strong revenue growth rate of 8.27% and a gross margin of 86.13%. Additionally, it achieves an impressive EBIT margin of 34.05% and an EBIT growth of 13.17%. With a net margin of 31.07% and favorable interest expense at 0.39%, the overall income statement evaluation is positive. Furthermore, the company demonstrates solid financial ratios, including a ROIC of 10.89% compared to a WACC of 5.39%, suggesting value creation, alongside a healthy quick ratio of 3.95 and a low debt-to-equity ratio of 0.09.
Unfavorable signals
Despite these favorable signals, there are some unfavorable elements to consider. The operating expenses growth compared to revenue growth is unfavorable, with a rate of 8.27%. Additionally, the current ratio of 4.73 indicates potential liquidity imbalances, while the asset turnover ratio of 0.38 is also unfavorable. Furthermore, the company does not provide a dividend yield, which could be a concern for income-focused investors.
Conclusion
Overall, the income statement evaluation is favorable, and the ratios indicate value creation. However, the long-term price trend is bearish, which may suggest waiting for buyers to return before making any investment decisions.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- First Trust Advisors LP Increases Position in Regeneron Pharmaceuticals, Inc. $REGN – MarketBeat (Dec 06, 2025)
- Regeneron Pharmaceuticals, Inc. (REGN): A Bull Case Theory – Insider Monkey (Dec 05, 2025)
- Regeneron Pharmaceuticals, Inc. $REGN Shares Sold by Amundi – MarketBeat (Dec 06, 2025)
- REGN Gains 21.5% in a Month: Time to Buy, Sell or Hold the Stock? – Yahoo Finance (Dec 01, 2025)
- Regeneron Pharmaceuticals, Inc. $REGN Holdings Lowered by Epoch Investment Partners Inc. – MarketBeat (Dec 05, 2025)
For more information about Regeneron Pharmaceuticals, Inc., please visit the official website: regeneron.com
