The Long View

Ah, Regeneron (REGN). Once the golden child of ophthalmology, now the grizzled veteran of biotech, hobbling through a few Eylea-induced aches and pains.

But here’s the punchline: this old dog is learning some new tricks. And Wall Street is finally starting to notice.

After a year in the earnings penalty box, Regeneron just delivered a Q3 so strong it practically needed its own cape. EPS crushed expectations. Revenue jumped. And investors, bless their whiplashed hearts, are beginning to see a company no longer shackled to the fading glory of Eylea.

Let’s get the bad news out of the way first: Eylea, the once-mighty eye drug, is in decline. Between biosimilars, label rejections, and a competitor with a cooler dosing schedule (hi, Vabysmo), the franchise took a hit.

US sales fell over 40% year-over-year in Q3. Even the souped-up Eylea HD got tripped up by manufacturing snafus courtesy of Catalent.

Despite all that, the market is no longer pricing Regeneron like a one-product company. And that’s largely because of one glorious monoclonal antibody that’s become a cornerstone of the company’s next chapter. Dupixent is no longer just a success story; it’s a biotech blockbuster with a rocket strapped to its back.

With over $4.9 billion in global sales in Q3 and growth across a sprawling landscape of indications – atopic dermatitis, asthma, COPD, and counting – this drug is turning Regeneron into something new: a genuine growth story.

Even better, the collaboration with Sanofi (SNY) is paying off faster than expected.

Development costs are nearly paid down, and once those checks stop, Regeneron’s bottom line gets a $300 million quarterly tailwind. That’s what you call free cash flow with attitude.

Libtayo, meanwhile, is no slouch. The checkpoint inhibitor just secured another FDA nod and is creeping toward $1.5 billion in annualized sales.

The checkpoint inhibitor just secured another FDA nod and is creeping toward $1.5 billion in annualized sales. And then there’s the company’s pipeline – broad, promising, and increasingly hard to ignore.

There’s Lynozyfic in multiple myeloma, rare disease treatments like the one for fibrodysplasia ossificans progressiva, and even some gene therapy programs that could soon graduate from the lab bench to Wall Street darling status.

Obesity is in their sights too, with a GLP-1/GIP agonist that could eventually nibble at the multi-billion-dollar pie currently dominated by Eli Lilly (LLY) and Novo Nordisk (NVO).

Late-stage allergy treatments are also in the mix, because why not try to fix every broken immune system while you’re at it?

Financially, this is a company that walks the walk.

A pristine balance sheet with $18.7 billion in cash, $7 billion in manufacturing expansion underway, and the kind of buyback swagger – $2.8 billion year-to-date – that says, “Yeah, we know we’re cheap.”

They even tossed in a dividend, just to show they could.

What we’re witnessing here is a classic pivot story. Eylea fades into the sunset, stage left. Dupixent takes center stage. And a robust pipeline queues up backstage, ready for its cue.

What once looked like a company treading water now reads like the first chapter of a serious revival. Will it hit $1,000 a share again in 2026? Maybe not. But $800? That’s well within reason.

The biggest risk now is ironically the one that comes with success.

Dupixent is so dominant that Regeneron could become overly reliant on it, the way it once leaned too hard on Eylea. But this time, the company seems prepared.

The pipeline is wide. The balance sheet is deep. The strategy is working. And the market, once skeptical and sulking, is starting to believe again.

So here we are, watching a biotech rebirth in real time. Regeneron may be graying at the temples, but it’s still sharp as hell. And if you blink, you just might miss the comeback of the decade.