Last Update 23 Jan 26

Fair value Increased 12%

REGN: Pipeline Catalysts In 2026 Are Expected To Drive Re Rating

Analysts have lifted their fair value estimate for Regeneron Pharmaceuticals from US$890.00 to about US$995.67, reflecting higher modeled revenue growth and profit margins, alongside a slightly lower future P/E assumption and an updated discount rate.

Analyst Commentary

Recent research on Regeneron Pharmaceuticals has tilted clearly positive, with a series of higher price targets and supportive coverage pointing to confidence in the company’s execution, portfolio strength, and pipeline potential.

Bullish analysts highlight the combination of established revenue drivers such as Eylea, Dupixent, and Libtayo alongside earlier stage assets, and see this mix as important for supporting the latest fair value upgrade to about US$995.67.

Bullish analysts also emphasize that Regeneron’s balance sheet and proprietary technology platform provide flexibility for future investment, which they see as relevant to the way markets are pricing long term optionality into the shares.

Several recent research notes maintain positive ratings while adjusting targets to reflect updated models, suggesting that the higher fair value estimate is broadly aligned with the tone of recent Street commentary rather than standing apart from it.

Coverage initiations with positive or neutral stances, including where Regeneron is started at Sector Perform, indicate that even more measured views still recognize the company as a key large cap biopharma name.

On the more cautious side, some research flags higher projected expenses into 2026 and operational work on issues such as Eylea HD fill and finish, which are treated as watch points rather than thesis breakers and are explicitly incorporated into models.

Overall, the current research stream frames Regeneron as a large cap biopharma with an established commercial base, an active pipeline, and ongoing capital allocation capacity, all of which are central inputs behind the revised fair value estimate.

Bullish Takeaways

Multiple bullish analysts have raised Regeneron price targets over time, with recent figures in research notes ranging from US$700 to US$914, which aligns directionally with the updated fair value estimate of about US$995.67 and reflects confidence in the company’s earnings power.
Positive commentary around a strong Q3, with Eylea and Dupixent both beating estimates in one report, feeds into models that support higher valuation ranges tied to execution on existing franchises.
Bullish analysts describe Regeneron as a differentiated large cap biopharma name with a durable commercial foundation and an innovation led pipeline strategy, an assessment that supports assigning higher long term value to the shares.
Research that points to oncology catalysts in 2026 and ongoing work to resolve Eylea HD operational issues treats these as potential upside levers for growth and risk reduction, which factors into more constructive target prices.

What's in the News

Japan's Ministry of Health, Labour and Welfare granted marketing and manufacturing authorization for Dupixent for severe or refractory bronchial asthma in children aged 6 to 11 years whose symptoms are not adequately controlled with existing therapy, expanding the medicine's reach in pediatric asthma care (Product related announcement).
Regeneron and Sanofi received European Commission approval for Dupixent in moderate to severe chronic spontaneous urticaria in adults and adolescents 12 years and older who are inadequately controlled on antihistamines and naive to anti IgE therapy, adding another approved use in the EU (Product related announcement).
The U.S. FDA approved Eylea HD Injection 8 mg for macular edema following retinal vein occlusion with up to every 8 week dosing after an initial monthly period, and also cleared an every 4 week dosing option for some patients across wAMD, DME, DR and RVO, broadening dosing flexibility for the franchise (Product related announcement).
Libtayo secured approval supported by the Phase 3 C POST trial as the first immunotherapy shown to improve disease free survival in cutaneous squamous cell carcinoma in the adjuvant setting, where it reduced the risk of recurrence or death by 68% in the study, reinforcing Regeneron's position in immuno oncology (Product related announcement).
Regeneron and Tessera Therapeutics entered a global collaboration focused on TSRA 196, an investigational in vivo gene writing program for alpha 1 antitrypsin deficiency, adding a gene editing based approach to Regeneron's partnered pipeline (Strategic alliance).

Valuation Changes

Fair Value Estimate has risen from US$890.00 to about US$995.67, a moderate step up in the modeled intrinsic value per share.
Discount Rate has moved slightly higher from 6.776% to about 7.12%, implying a somewhat more cautious required return in the updated model.
Revenue Growth has been marked up from roughly 7.86% to about 10.53%, reflecting higher modeled top line expansion over the forecast period.
Net Profit Margin has edged higher from about 34.74% to roughly 36.52%, indicating modestly stronger expected profitability in future years.
Future P/E has been trimmed slightly from about 16.09x to around 15.68x, suggesting the higher fair value is driven more by earnings assumptions than by a richer valuation multiple.

Regeneron's best-in-class therapies, strong product adoption, and innovative pipeline position it for rapid market share gains and expanded, diversified long-term growth.
Strategic investments in manufacturing and advanced biologics platforms enable operational efficiency, robust supply, and capitalize on rising global demand for precision medicines.
Heavy dependence on key drugs and mounting biosimilar competition, payer pressure, and high R&D spending threaten revenue stability and future earnings growth.

Catalysts

About Regeneron Pharmaceuticals

Regeneron Pharmaceuticals, Inc. discovers, invents, develops, manufactures, and commercializes medicines for treating various diseases worldwide.What are the underlying business or industry changes driving this perspective?

While analyst consensus expects Dupixent's label expansions to steadily expand revenues, there is substantial evidence that Dupixent's best-in-class efficacy and unique safety profile across multiple, highly prevalent Type 2 inflammatory diseases-combined with market under-penetration and rapid initial uptake in recent launches-could yield a much steeper ramp in both US and global market share, supporting significantly higher long-term revenue and earnings growth.
Although analysts broadly agree that EYLEA HD's upcoming label enhancements and monthly dosing should solidify its position, they may be underestimating EYLEA HD's potential to rapidly capture a dominant branded share in the expanding retinal disease market, particularly given strong early adoption, robust product profile, and expected resolution of manufacturing bottlenecks, which could drive margin and revenue expansion well beyond current projections.
Regeneron's emerging portfolio in hematology and oncology-most notably Lynozyfic and odronextamab, each demonstrating best-in-class efficacy and safety with potential for use in earlier disease settings-positions the company to unlock multi-billion dollar opportunities in large, underserved populations like multiple myeloma and lymphoma, diversifying the revenue base at a time when industry standards of care are shifting toward advanced biologics.
Continued aggressive investment in U.S. manufacturing infrastructure, including a new state-of-the-art fill/finish facility and expanded biologics capacity, is likely to generate long-term operational advantages, enabling faster global launches, improved supply reliability, and sustainable improvements to gross and net margins as advanced therapies become a greater share of the portfolio.
Regeneron's leadership in antibody, siRNA, and genetic medicines-coupled with first-mover advantage in combining these advanced platforms-aligns with the accelerating global adoption of precision and personalized therapeutics, which will expand addressable markets as the aging population and rising chronic disease prevalence worldwide fuel higher, stickier demand for next-generation biologics, substantially boosting top-line growth over the next decade.

Regeneron Pharmaceuticals Earnings and Revenue Growth

Regeneron Pharmaceuticals Future Earnings and Revenue Growth

Assumptions

How have these above catalysts been quantified?

This narrative explores a more optimistic perspective on Regeneron Pharmaceuticals compared to the consensus, based on a Fair Value that aligns with the bullish cohort of analysts.
The bullish analysts are assuming Regeneron Pharmaceuticals's revenue will grow by 7.9% annually over the next 3 years.
The bullish analysts assume that profit margins will increase from 31.4% today to 34.7% in 3 years time.
The bullish analysts expect earnings to reach $6.2 billion (and earnings per share of $58.86) by about September 2028, up from $4.5 billion today. The analysts are largely in agreement about this estimate.
In order for the above numbers to justify the price target of the more bullish analyst cohort, the company would need to trade at a PE ratio of 16.1x on those 2028 earnings, up from 12.9x today. This future PE is greater than the current PE for the US Biotechs industry at 15.3x.
Analysts expect the number of shares outstanding to decline by 3.63% per year for the next 3 years.
To value all of this in today's terms, we will use a discount rate of 6.78%, as per the Simply Wall St company report.

Regeneron Pharmaceuticals Future Earnings Per Share Growth

Risks

What could happen that would invalidate this narrative?

Regeneron's heavy reliance on EYLEA and Dupixent for the majority of its revenue exposes it to significant risk from biosimilar competition and loss of U.S. or global pricing power in high-cost biologics, which could result in declining top-line revenue and compressed earnings as these products face market exclusivity erosion and payer pressure.
Ongoing global scrutiny of drug costs and reimbursement, especially for leading drugs like EYLEA and Dupixent, combined with increasing consolidation among payers and providers, threatens to drive lower prices and restrict formulary access, putting downward pressure on both revenue growth and net margins over the long term.
The rising prevalence of biosimilars in the anti-VEGF and immunology space, coupled with current branded share declines and physician demand pressures experienced by EYLEA, suggests intensified competition and continued unit erosion, risking future revenue streams from one of Regeneron's largest franchises.
Delays in regulatory approvals and manufacturing enhancements, as seen with EYLEA HD and pipeline assets due to third-party site issues, highlight the risk of slower commercial launches and missed revenue expectations, while mounting R&D and manufacturing expenditures may not be offset by sufficient new product wins, leading to margin compression.
Elevated research and development spending and ambitious pipeline expansion carry the risk of stagnating returns should clinical trial productivity slow or pivotal readouts underperform, as evidenced by Wall Street's skepticism on the commercial value of Regeneron's pipeline versus its high R&D investment, potentially resulting in weaker future earnings and lower valuation multiples.

Valuation

How have all the factors above been brought together to estimate a fair value?

The assumed bullish price target for Regeneron Pharmaceuticals is $890.0, which is the highest price target estimate amongst analysts. This valuation is based on what can be assumed as the expectations of Regeneron Pharmaceuticals's future earnings growth, profit margins and other risk factors from analysts on the bullish end of the spectrum.
However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $890.0, and the most bearish reporting a price target of just $543.0.
In order for you to agree with the bullish analysts, you'd need to believe that by 2028, revenues will be $17.8 billion, earnings will come to $6.2 billion, and it would be trading on a PE ratio of 16.1x, assuming you use a discount rate of 6.8%.
Given the current share price of $556.53, the bullish analyst price target of $890.0 is 37.5% higher.
We always encourage you to reach your own conclusions though. So sense check these analyst numbers against your own assumptions and expectations based on your understanding of the business and what you believe is probable.

Have other thoughts on Regeneron Pharmaceuticals?

Create your own narrative on this stock, and estimate its Fair Value using our Valuator tool.

Create Narrative

How well do narratives help inform your perspective?

Disclaimer

AnalystHighTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystHighTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystHighTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.

Dupixent And EYLEA Will Seize Expanding Global Markets