REGN: Positive Trial Results And Approval Will Drive Continued Momentum

Regeneron's analyst price target has increased from approximately $735.72 to $753.17, as analysts cite better-than-expected quarterly results and continued strength across key product lines as drivers for the higher valuation.

Analyst Commentary

• Bullish analysts highlight the robust Q3 results, which surpassed expectations for both revenue and earnings. This strengthens confidence in Regeneron’s core business execution and growth outlook.
• Key products such as Eylea and Dupixent continued to drive performance. Eylea’s alternative manufacturing plans and strong patient share positioning are viewed as positives for ongoing market dominance.
• Pipeline potential, including advancements in treatments for myasthenia gravis and Alzheimer's-related muscle-sparing programs, is seen as a source of additional upside. This supports raised price targets and recommendations to buy the stock.
• Several bullish analysts also note that Regeneron’s operational flexibility and proactive steps to address manufacturing issues could mitigate near-term risks and support future valuation expansion.

• Bearish analysts point to regulatory risks, especially tied to manufacturing delays at third-party facilities. These could potentially impact the launch timeline for products like the Eylea HD prefilled syringe.
• Ongoing headwinds in the Eylea franchise remain a concern, with competitive pressure and dependency on timely regulatory approvals cited as factors that could limit near-term growth.
• Cost pressures, particularly regarding anticipated expenses in 2026, are expected to weigh on margins if not managed effectively. This tempers enthusiasm around recent quarterly beats.

What's in the News

• The FDA has approved Libtayo (cemiplimab) as an adjuvant treatment for adults with cutaneous squamous cell carcinoma (CSCC) at high risk of recurrence after surgery and radiation. (FDA approval)
• Positive pivotal trial results were announced for DB-OTO gene therapy, showing meaningful improvements in hearing for participants with profound hearing loss due to OTOF gene variants. (New England Journal of Medicine, AAO-HNSF meeting)
• Regeneron and Sanofi presented positive Phase 3 results for Dupixent in treating allergic fungal rhinosinusitis (AFRS) in patients aged 6 years and older. (Company announcement)
• The European Medicines Agency’s committee issued a positive opinion for Libtayo as an adjuvant treatment in adults with CSCC at high risk of recurrence, with a final decision expected soon. (EMA opinion)
• The Phase 3 NIMBLE trial for cemdisiran met primary and key secondary endpoints for generalized myasthenia gravis, supporting its potential for regulatory review. (Company announcement)

Valuation Changes

• Consensus Analyst Price Target has risen slightly from $735.72 to $753.17, reflecting higher company valuation expectations.
• Discount Rate increased modestly from 6.91% to 7.05%, indicating a slightly higher required return on investment.
• Revenue Growth projections improved from 5.89% to 6.72% annually, highlighting greater confidence in future sales expansion.
• Net Profit Margin fell from 30.82% to 29.32%, suggesting analysts expect slightly lower profitability in upcoming periods.
• Future P/E ratio edged up from 15.90x to 16.01x, which points to marginally higher earnings valuation multiples going forward.