Regeneron: Pipeline Strength vs. Execution Risks

Broad catalysts support long-term value, but near-term execution—Eylea stabilization, earnings momentum, and reliance on partners—must improve before a premium multiple returns.

Regeneron’s 2Q25 results reinforced our core thesis: the company retains enviable pipeline breadth, but execution on its ophthalmology franchise remains the gating factor for near-term upside. Eylea 2mg erosion has been faster than expected, and while Eylea HD adoption is improving incrementally, delays in convenience features and competitive pressure have hindered stabilization.

As a result, consensus forecasts for 2025–27 product revenues remain flat, with growth reliant on collaboration revenue streams from Sanofi and Bayer.

Meanwhile, Dupixent continues to expand globally, and collaboration revenues now represent a significant—and increasingly profitable—share of the business. Oncology provides another important pillar, with fianlimab + Libtayo and hematology bispecifics (linvoseltamab, odronextamab) positioned as near-term catalysts. Itepekimab, despite mixed data, still holds blockbuster potential if Sanofi advances regulatory filings.

Relative to peers, Regeneron trades broadly in line on valuation and margins, but its bottom line reflects the loss of outsized profitability from legacy Eylea. Governance factors, including a dual-class structure and relatively limited float, also warrant attention.

We remain constructive on Regeneron’s long-term potential, but believe investors should closely monitor execution on Eylea HD and upcoming pipeline catalysts before re-rating enthusiasm further.

Risks To Watch

Key risks include continued erosion of U.S. Eylea 2mg, slower-than-expected conversion to Eylea HD, and regulatory setbacks in itepekimab or bispecific programs. Over-reliance on partner revenues (Sanofi, Bayer) reduces internal visibility, while Regeneron’s dual-class governance and limited float may constrain flexibility during transitions or strategic inflection points.

View of Midtown East, Queensboro Bridge, NYC. Hartaj Singh, Summer 2025.

Coming Up on The Biotech Capital Compass

September 2025 – FDA in Flux

This September, The Biotech Capital Compass (BCC) returns to the topic of FDA leadership and regulatory stability, issues that continue to reverberate across the BioPharma landscape.

In the wake of Dr. Peter Marks’ departure, and now Dr. Prasad’s exit from — and return to — CBER, we’ve seen a string of high-level resignations and growing uncertainty inside the FDA. With more regulatory decisions under scrutiny and timelines facing increasing delays, it’s an ideal moment to take another temperature check on the agency that sits at the center of therapeutic innovation.

We’ll speak with another seasoned FDA insider to explore what these changes might mean for drug development, industry oversight, and investor confidence.

Stay tuned…

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Biotech Capital Compass: August Newsletter

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About the Author

Hartaj Singh brings over 30 years of experience in drug development, corporate strategy, hedge fund management, and biotech analysis. With a career spanning top investment banks, Hartaj has been a highly ranked analyst, known for providing astute guidance on biotech investments for over a decade. His deep sector knowledge, honed through years of navigating the biotech landscape, is now being put to use to help investors capitalize on biotech opportunities.