# Regeneron Pharmaceuticals (REGN.US)

Canonical: https://gigainvestors.com/s/REGN

Analysis as of: 2026-10-16T07:31:30.524Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $796.34 per share; close as of 2026-10-15.

Estimated value: low $705.07 per share, central $946.56 per share, high $1,097.13 per share. Buy at or below the central value $946.56 per share. Valuation as of 2026-10-16T07:31:30.524Z; scenarios are not confidence intervals.

Expected annual return: 11.4% at the stated quote. About 11.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.26×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.35×

- FY2018: 0.38×

- FY2019: 0.28×

- FY2020: 0.42×

- FY2021: 0.56×

- FY2022: 0.44×

- FY2023: 0.31×

- FY2024: 0.28×

- FY2025: 0.25×

- LTM to Jun 2026: 0.26×

### moat: pass

- ROIC, median of available years: 25.2%

- ROIC, second-lowest year: 16.0%

- Typical minus recent gross margin: 2.7 pp

- Typical gross margin (annual median): 88.1%

- Recent gross margin (lower of latest and 3-year median): 85.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 5.6%

- ROIC including acquisitions, ten-year median: 23.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 23.0%

- FY2017: 30.6%

- FY2018: 48.6%

- FY2019: 22.4%

- FY2020: 41.7%

- FY2021: 34.3%

- FY2022: 27.3%

- FY2023: 21.4%

- FY2024: 16.0%

- FY2025: 12.2%

### economics: fail

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 0.97×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $25B

- Net income, five-year total: $25B

- Return on incremental invested capital: 24.0%

- Working capital / revenue, annual change: 2.1 pp

- Working capital / revenue, change between three-year averages: 15.0 pp

- Working capital / revenue, final three-year average: 58.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 0.94×

- FY2023: 0.95×

- FY2024: 1.00×

- FY2025: 0.93×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 30.6% vs 16.0%

- Per-share earnings: 7.70 to 38.34 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.6%

- Ordinary dilution, 5-year annual growth: -1.2%

- Market cap gain: $41B

- Cumulative retained earnings: $34B

- Diluted shares, 10-year annual growth: -0.6%

- Diluted shares, 5-year annual growth: -1.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 22.2%

- Per-share value change: $30.64

- Per-share value, starting three-year median: $7.70

- Per-share value, ending three-year median: $38.34

- Buybacks concentrated in cheaper years (correlation): 0.62

- Average buyback yield: 3.3%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $8.1B

- Cumulative net income, 10 years: $35B

- ROIC, first three-year median: 30.6%

- ROIC, last three-year median: 16.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: $7.70

- FY2017: $10.34

- FY2018: $21.29

- FY2019: $18.46

- FY2020: $30.52

- FY2021: $71.97

- FY2022: $38.22

- FY2023: $34.77

- FY2024: $38.34

- FY2025: $41.48

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -1.2%

- Receivables to sales index (DSRI): 0.92×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 20.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.11×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.04×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -8.5%

- FY2017: -1.2%

- FY2018: 2.1%

- FY2019: -2.1%

- FY2020: 5.2%

- FY2021: 3.9%

- FY2022: -2.3%

- FY2023: -1.9%

- FY2024: -0.0%

- FY2025: -1.2%

## Holders

- [David Hoeft](https://gigainvestors.com/DAC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Mason Hawkins](https://gigainvestors.com/SE): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Harry Burn](https://gigainvestors.com/SSHFX): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 33% since Aug 2024 · "Regeneron sees nearly $0.18 per share earnings headwind after Sanofi deal" (seekingalpha.com, Oct 2026) · sales +8.3%

Story as of 2026-10-16T09:59:29.139Z; price observation 2026-10-15.

Price needs cash profits to grow 3.3% a year for ten years

- 2025-05-30: Regeneron Pharmaceuticals Crashes 18% On A Surprise Sanofi-Tied Failure ([finance.yahoo.com](https://finance.yahoo.com/m/ce3e1177-238b-38c7-a4b6-d2a356f18904/regeneron-pharmaceuticals.html))

- 2025-06-27: Bayer, Regeneron get EU nod for Eylea's label extension ([seekingalpha.com](https://seekingalpha.com/news/4463298-bayer-regeneron-get-eu-nod-for-eyleas-label-extension?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2025-10-28: Regeneron beats quarterly estimates on strong demand for Dupixent ([finance.yahoo.com](https://finance.yahoo.com/news/regeneron-beats-quarterly-estimates-strong-122414959.html))

- 2025-11-19: Regeneron gets FDA nod for Eylea in macular edema treatment ([seekingalpha.com](https://seekingalpha.com/news/4524229-regeneron-gets-fda-nod-for-eylea-in-macular-edema-treatment?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-05-18: Regeneron shares fall 12% on disappointing melanoma trial data ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/regeneron-shares-fall-12-disappointing-091114727.html))

- 2026-07-30: Regeneron beats quarterly estimates on eczema drug strength, shares rise ([finance.yahoo.com](https://finance.yahoo.com/healthcare/articles/regeneron-beats-quarterly-estimates-eczema-115431376.html))

### Sales · FY2025–2026

sales +8.3%; source https://www.sec.gov/Archives/edgar/data/872589/000087258926000008/regn-20251231.htm; observed 2026-02-04.

- FY2017: $5.9B 

- FY2018: $6.7B 

- FY2019: $7.9B 

- FY2020: $8.5B 

- FY2021: $16B 

- FY2022: $12B 

- FY2023: $13B 

- FY2024: $14B 

- FY2025: $14B 

- FY2026: $16B 

### Gross margin · FY2025

gross margin 85.4%; source https://www.sec.gov/Archives/edgar/data/872589/000087258926000008/regn-20251231.htm; observed 2026-02-04.

- FY2016: 93.8% 

- FY2017: 93.2% 

- FY2018: 93.5% 

- FY2019: 90.1% 

- FY2020: 84.0% 

- FY2021: 83.1% 

- FY2022: 86.0% 

- FY2023: 93.3% 

- FY2024: 86.1% 

- FY2025: 85.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in biotechnology; annual sales are USD 14.3 billion.

- Source: https://www.sec.gov/Archives/edgar/data/872589/000087258926000008/regn-20251231.htm (filed 2026-02-04); FY2025: revenue 14342900000; grossProfit 12242200000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); REGN.US: Regeneron Pharmaceuticals, Inc. discovers, invents, develops, manufactures, and commercializes medicines to treat various diseases worldwide. The company develops product candidates to treat eye, allergic and inflammatory, cardiovascular, metabolic, neurological, infectious, and rare diseases; and cancer, hematologic conditions. It also offers EYLEA injections for wet age-related macular degeneration and diabetic macular edema; myopic choroidal neovascularization; diabetic retinopathy; neovascular glaucoma; retinopathy of prematurity; Dupixent injection to treat atopic dermatitis and asthma; Libtayo injection for metastatic or locally advanced cutaneous squamous cell carcinoma; Praluent injection to treat heterozygous familial hypercholesterolemia (HoFH); and Kevzara solution for rheumatoid arthritis. It has license and collaboration agreement with Bayer for the development and commercialization of EYLEA 8 mg and EYLEA; Alnylam Pharmaceuticals, Inc. to discover, develop, and commercialize RNAi therapeutics for diseases by addressing therapeutic disease targets expressed in eye and central nervous system; Intellia Therapeutics, Inc. to advance CRISPR/Cas9 gene-editing technology for in vivo therapeutic development for therapies focused on neurological and muscular diseases; Hansoh Pharmaceuticals Group Company Limited to acquire development and commercial rights for HS-20094, a dual GLP-1/GIP receptor; and Tessera Therapeutics, Inc. develops and commercializes TSRA-196, an investigational gene editing therapy for Alpha-1 antitrypsin deficiency. The company has a strategic collaboration with Telix Pharmaceuticals Limited to develop and commercialize radiopharmaceutical therapies. It also has a strategic collaboration with CytomX Therapeutics, Inc. to create conditionally-activated bispecific cancer therapies. It has a strategic alliance with Sanofi to develop long-acting immunology antibodies. The company was incorporated in 1988 and is based in Tarrytown, New York.

### Why customers stay

Margins ranged from 85.4% to 93.3% during 2023–25; it earns 25.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); FY2023: grossProfit / revenue = 93.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); FY2024: grossProfit / revenue = 86.1%.

- Source: https://www.sec.gov/Archives/edgar/data/872589/000087258926000008/regn-20251231.htm (filed 2026-02-04); FY2025: grossProfit / revenue = 85.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); 10-year return on capital observations [[2016,0.23026849814691686],[2017,0.30580082749871107],[2018,0.48603002189822686],[2019,0.22409100088355216],[2020,0.4167680745141878],[2021,0.3425125561529601],[2022,0.27286784268036446],[2023,0.21368753555473993],[2024,0.1598595903412371],[2025,0.12151933770226094]]; median 0.25156817041364066. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 1% of cash earnings on expansion; earns 24% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); FY2016: growth capex 255561744.43860656; upkeep 256338255.56139344; owner earnings 743928744.4386065. Growth capex / owner earnings = 0.343529869425145.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); FY2017: growth capex 127133000; upkeep 145467000; owner earnings 1198511000. Growth capex / owner earnings = 0.10607578904156909.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); FY2018: growth capex 234900000; upkeep 148200000; owner earnings 2444400000. Growth capex / owner earnings = 0.09609720176730487.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); FY2019: growth capex 219300000; upkeep 210300000; owner earnings 2115800000. Growth capex / owner earnings = 0.10364873806597977.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); FY2020: growth capex 248518203.25524485; upkeep 366081796.74475515; owner earnings 3383018203.2552447. Growth capex / owner earnings = 0.07346049838458242.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); FY2021: growth capex 265700000; upkeep 286200000; owner earnings 8075300000. Growth capex / owner earnings = 0.03290280237266727.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); FY2022: growth capex 0; upkeep 590100000; owner earnings 4089700000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); FY2023: growth capex 300026280.3044827; upkeep 626373719.6955173; owner earnings 3748226280.3044825. Growth capex / owner earnings = 0.08004486865721203.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); FY2024: growth capex 273000000; upkeep 482900000; owner earnings 4412600000. Growth capex / owner earnings = 0.061868286271132666.

- Source: https://www.sec.gov/Archives/edgar/data/872589/000087258926000008/regn-20251231.htm (filed 2026-02-04); FY2025: growth capex 42911820.83158553; upkeep 855488179.1684145; owner earnings 4193111820.8315854. Growth capex / owner earnings = 0.010233884204660962.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); Incremental return on capital 0.239912231636626, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); Dividend observations: [[2016,500183000],[2017,358688000],[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,370300000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/872589/000087258926000008/regn-20251231.htm (filed 2026-02-04); FY2025: cash repurchases 3970700000 USD.

### Are managers owners

Insiders own 2.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); REGN.US SharesStats.PercentInsiders = 2.085 percentage points; cache date 2026-10-16.

### What could break it

"We are substantially dependent on the success of EYLEA HD, EYLEA, and Dupixent." (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/872589/000087258926000008/regn-20251231.htm (filed 2026-02-04); We are substantially dependent on the success of EYLEA HD, EYLEA, and Dupixent.

### What the price says

The price assumes cash profits grow 3.3% yearly over ten years; actual growth was 22.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); Ten-year compound average after fade. Initial solved rate 0.03456929197342873. Price 796.34; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 4.934660504088943 → FY2025 38.610606085005394. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $345.02 per share

- 2016-11: $379.24 per share

- 2016-12: $367.09 per share

- 2017-01: $359.29 per share

- 2017-02: $373.50 per share

- 2017-03: $387.51 per share

- 2017-04: $388.49 per share

- 2017-05: $459.06 per share

- 2017-06: $491.14 per share

- 2017-07: $491.62 per share

- 2017-08: $496.90 per share

- 2017-09: $447.12 per share

- 2017-10: $402.62 per share

- 2017-11: $361.86 per share

- 2017-12: $375.96 per share

- 2018-01: $366.65 per share

- 2018-02: $320.44 per share

- 2018-03: $344.36 per share

- 2018-04: $303.68 per share

- 2018-05: $300.32 per share

- 2018-06: $344.99 per share

- 2018-07: $368.01 per share

- 2018-08: $406.75 per share

- 2018-09: $404.04 per share

- 2018-10: $339.24 per share

- 2018-11: $365.65 per share

- 2018-12: $373.50 per share

- 2019-01: $429.27 per share

- 2019-02: $430.74 per share

- 2019-03: $410.62 per share

- 2019-04: $343.14 per share

- 2019-05: $301.72 per share

- 2019-06: $313.00 per share

- 2019-07: $304.76 per share

- 2019-08: $290.05 per share

- 2019-09: $277.40 per share

- 2019-10: $306.28 per share

- 2019-11: $369.00 per share

- 2019-12: $375.48 per share

- 2020-01: $337.94 per share

- 2020-02: $444.57 per share

- 2020-03: $488.29 per share

- 2020-04: $525.88 per share

- 2020-05: $612.81 per share

- 2020-06: $623.65 per share

- 2020-07: $632.07 per share

- 2020-08: $619.93 per share

- 2020-09: $559.78 per share

- 2020-10: $543.56 per share

- 2020-11: $516.03 per share

- 2020-12: $483.11 per share

- 2021-01: $503.84 per share

- 2021-02: $450.57 per share

- 2021-03: $473.14 per share

- 2021-04: $481.30 per share

- 2021-05: $502.43 per share

- 2021-06: $558.54 per share

- 2021-07: $574.61 per share

- 2021-08: $673.40 per share

- 2021-09: $605.18 per share

- 2021-10: $639.94 per share

- 2021-11: $636.53 per share

- 2021-12: $631.52 per share

- 2022-01: $608.59 per share

- 2022-02: $618.36 per share

- 2022-03: $698.42 per share

- 2022-04: $659.11 per share

- 2022-05: $664.74 per share

- 2022-06: $591.13 per share

- 2022-07: $581.69 per share

- 2022-08: $581.06 per share

- 2022-09: $688.87 per share

- 2022-10: $748.75 per share

- 2022-11: $751.70 per share

- 2022-12: $721.49 per share

- 2023-01: $758.47 per share

- 2023-02: $760.42 per share

- 2023-03: $821.67 per share

- 2023-04: $801.79 per share

- 2023-05: $735.56 per share

- 2023-06: $718.54 per share

- 2023-07: $741.91 per share

- 2023-08: $826.49 per share

- 2023-09: $822.96 per share

- 2023-10: $779.89 per share

- 2023-11: $823.81 per share

- 2023-12: $878.29 per share

- 2024-01: $942.78 per share

- 2024-02: $966.09 per share

- 2024-03: $962.49 per share

- 2024-04: $890.66 per share

- 2024-05: $980.16 per share

- 2024-06: $1,051.03 per share

- 2024-07: $1,079.19 per share

- 2024-08: $1,184.69 per share

- 2024-09: $1,051.24 per share

- 2024-10: $838.20 per share

- 2024-11: $750.22 per share

- 2024-12: $712.33 per share

- 2025-01: $672.98 per share

- 2025-02: $698.74 per share

- 2025-03: $634.23 per share

- 2025-04: $598.76 per share

- 2025-05: $490.28 per share

- 2025-06: $525.00 per share

- 2025-07: $545.46 per share

- 2025-08: $580.70 per share

- 2025-09: $562.27 per share

- 2025-10: $651.80 per share

- 2025-11: $780.19 per share

- 2025-12: $771.87 per share

- 2026-01: $741.45 per share

- 2026-02: $781.67 per share

- 2026-03: $772.64 per share

- 2026-04: $707.06 per share

- 2026-05: $614.78 per share

- 2026-06: $623.54 per share

- 2026-07: $762.63 per share

- 2026-08: $799.08 per share

- 2026-09: $758.27 per share

- 2026-10: $753.12 per share

## Annual estimated value (USD per share)

- FY2016: low $95.06 per share, central $132.32 per share, high $154.02 per share

- FY2017: low $129.40 per share, central $174.58 per share, high $200.89 per share

- FY2018: low $160.23 per share, central $212.36 per share, high $242.71 per share

- FY2019: low $217.07 per share, central $298.65 per share, high $346.16 per share

- FY2020: low $326.98 per share, central $442.70 per share, high $510.08 per share

- FY2021: low $757.22 per share, central $1,061.18 per share, high $1,238.18 per share

- FY2022: low $597.17 per share, central $824.76 per share, high $957.28 per share

- FY2023: low $620.01 per share, central $845.81 per share, high $977.30 per share

- FY2024: low $528.94 per share, central $591.42 per share, high $674.58 per share

- FY2025: low $617.52 per share, central $825.16 per share, high $954.63 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:37:15.603Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/872589/000087258926000008/regn-20251231.htm); period 2025-12-31, filed 2026-02-04.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.