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Regeneron (REGN)
NASDAQ:REGN
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Regeneron
(NASDAQ:REGN)78Outperform
Positive Factors
Dividend Policy
Regeneron announced plans to start paying dividends, which contributed to a positive movement in the stock price.
Financial Outlook
Analyst recommends upgrading REGN shares from Market Perform to Outperform, indicating a strong positive outlook for the stock.
Negative Factors
Competitive Pressure
Concerns exist that consensus earnings per share could be at risk from faster-than-expected Eylea erosion, impacting near-term performance.
Regeneron (REGN) vs. S&P 500 (SPY)
Market Cap
$73.85B
Dividend Yield0.13%
Average Volume (3M)932.57K
Price to Earnings (P/E)17.6
Beta (1Y)0.65
Revenue Growth8.27%
EPS Growth10.35%
CountryUS
Employees15,106
SectorHealthcare
Sector Strength74
IndustryBiotechnology
Share Statistics
EPS (TTM)38.28
Shares Outstanding107,507,540
10 Day Avg. Volume814,972
30 Day Avg. Volume932,569
Financial Highlights & Ratios
PEG Ratio1.70
Price to Book (P/B)N/A
Price to Sales (P/S)5.27
Price to Cash Flow (P/CF)14.80
P/FCF Ratio14.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$958.60Price Target Upside41.91% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering20
Regeneron Business Overview & Revenue Model
Company DescriptionRegeneron Pharmaceuticals, Inc. is a leading biotechnology company that specializes in the discovery, development, and commercialization of innovative medicines. The company operates primarily in the healthcare sector, focusing on therapeutic areas such as ophthalmology, immunology, oncology, cardiovascular diseases, and infectious diseases. Core products include EYLEA, a treatment for retinal diseases, Dupixent for allergic and inflammatory diseases, and Libtayo for certain types of cancer.
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 Financial Statement Overview
Summary
Regeneron exhibits strong financial performance with robust profitability margins and a healthy balance sheet characterized by low leverage and solid equity ratios. Although there is a slight reduction in free cash flow growth, overall financial health remains solid, supporting future growth.Income Statement
Regeneron shows strong profitability with a Gross Profit Margin of 93.07% and a Net Profit Margin of 31.08% for 2024, indicating efficient cost management. The company's Revenue Growth Rate from 2023 to 2024 is 8.27%, which is solid but shows a deceleration compared to the previous year. While the EBIT and EBITDA margins have slightly decreased compared to earlier years, they remain healthy, reflecting stable profitability.85
Very Positive
Balance Sheet
The balance sheet is robust with a Debt-to-Equity Ratio of 0.09, implying low leverage risk. The Return on Equity (ROE) for 2024 stands at 15.03%, indicating efficient use of equity. The Equity Ratio is a strong 77.75%, demonstrating a solid capital structure with a significant proportion of assets financed by equity.90
Very Positive
Cash Flow
Regeneron has a stable Free Cash Flow, with a slight decrease of 0.08% from 2023 to 2024. The Operating Cash Flow to Net Income Ratio is 1.00, suggesting that operating cash flow generation is closely aligned with net income. However, the Free Cash Flow to Net Income Ratio of 0.83 indicates that a portion of earnings is being used for capital expenditures.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| 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
Negative
675.49
Price Trends
697.17
Negative
770.06
Negative
922.67
Negative
Market Momentum
-1.65
Negative
42.41
Neutral
18.91
Positive
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 675.49 is below the 20-day moving average (MA) of 693.56, below the 50-day MA of 697.17, and below the 200-day MA of 922.67, indicating a bearish trend. The MACD of -1.65 indicates Negative momentum. The RSI at 42.41 is Neutral, neither overbought nor oversold. The STOCH value of 18.91 is Positive, 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 (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $73.85B | 17.62 | 15.03% | 0.13% | 8.27% | 10.35% | |
75 Outperform | $142.89B | 299.97 | 2.48% | 2.65% | 6.16% | -91.54% | |
75 Outperform | $167.71B | 41.29 | 69.59% | 2.94% | 18.64% | -39.39% | |
69 Neutral | $20.57B | 12.67 | 9.76% | ― | -1.60% | 39.71% | |
64 Neutral | $123.21B | ― | -3.26% | ― | 11.64% | -114.72% | |
60 Neutral | $13.48B | 256.93 | 0.95% | ― | 14.76% | -88.32% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% |
* Healthcare Sector Average
Performance Comparison
REGN
Regeneron
675.49
-295.36
-30.42%
AMGN
Amgen
312.19
43.78
16.31%
BIIB
Biogen
142.65
-74.91
-34.43%
GILD
Gilead Sciences
114.74
44.96
64.43%
INCY
Incyte
69.68
10.42
17.58%
VRTX
Vertex Pharmaceuticals
486.22
74.37
18.06%
Regeneron Earnings Call Summary
Earnings Call Date: Feb 4, 2025 | % Change Since: 1.43% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call highlighted Regeneron's strong financial performance, driven by key products and a robust pipeline. However, challenges such as competitive pressure on EYLEA and increased R&D expenses were noted. The company's strategic capital allocation and pipeline advancements position it well for future growth.Highlights
Strong Revenue Growth
Regeneron reported a 10% revenue growth in Q4 2024, driven by key franchises including Dupixent, Libtayo, EYLEA, and EYLEA HD.
Dupixent's Transformative Impact
Dupixent continues to lead with over 1 million patients worldwide, maintaining leadership in new prescriptions across all approved indications.
EYLEA HD Expansion
EYLEA HD demonstrated best-in-class clinical profile, with plans to enhance its label for broader indications and flexible dosing.
Libtayo's Blockbuster Status
Libtayo achieved blockbuster status with global net sales of $1.2 billion in 2024, showing strong growth in non-melanoma skin cancers and lung cancer.
Innovative Pipeline
Regeneron's pipeline includes potential approvals for linvoseltamab, odronextamab, and pivotal data for several programs, positioning it for long-term growth.
Capital Allocation Strategy
Regeneron announced a quarterly cash dividend and increased share repurchase authorization by $3 billion, demonstrating commitment to returning capital to shareholders.
Lowlights
Competitive Pressure on EYLEA
Despite growth, EYLEA faces competitive pressure, including the impact of a biosimilar in the market, affecting its sales dynamics.
R&D and SG&A Expense Increase
R&D expenses increased to $1.2 billion, driven by the advancement of Regeneron's broad clinical pipeline, impacting overall financials.
Regulatory and Safety Challenges
Regeneron faces regulatory challenges and safety concerns with certain pipeline programs, which could impact development timelines and market entry.
Inventory Fluctuations
EYLEA HD net sales were affected by elevated wholesaler inventory levels, impacting quarterly sales performance.
Company Guidance
During Regeneron Pharmaceuticals' Fourth Quarter 2024 Earnings Conference Call, the company provided guidance for 2025, highlighting several key metrics and strategic focuses. Regeneron anticipates significant growth opportunities driven by new product launches and enhancements, such as the EYLEA HD prefilled syringe and expanded dosing flexibility, which are expected to strengthen its market position. They forecast 2025 R&D expenses to range between $5 billion and $5.2 billion, reflecting investments in late-stage pipeline programs, including Factor XI antibodies and oncology assets. SG&A expenses are projected to be between $2.55 billion and $2.7 billion, with gross margins on net product sales expected to be 87% to 88%. Regeneron also introduced a quarterly dividend of $0.88 per share and announced an additional $3 billion share repurchase authorization, highlighting their commitment to returning capital to shareholders while maintaining strategic investments in R&D to drive long-term growth.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.