REGN Soars 21.9% in a Month: Buy, Sell or Hold the Stock?

REGN Outperforms Industry, Sector and S&P 500 Index

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Against this backdrop, a closer evaluation of the company’s strengths and weaknesses can help assess its attractiveness as an investment opportunity.

REGN’s Eylea HD Gains Traction as Eylea Sales Decline

While lead drug Eylea continues to face headwinds, Eylea HD is gaining traction, supported by steady label expansions.

Eylea is an anti-VEGF therapy approved across multiple ophthalmology indications. Declining sales of this drug continue to pressure the company’s overall revenues.

Competitive pressure has intensified, particularly from Roche’s RHHBY Vabysmo, which targets both angiopoietin-2 (Ang-2) and VEGF-A pathways and has gained meaningful traction in the retinal disease market.

RHHBY’s Vabysmo sales grew 8% to CHF 2 billion in the first half of 2026 on continued global growth.

To combat the decline in Eylea sales, Regeneron introduced Eylea HD, a higher-dose formulation of Eylea designed to improve durability and extend dosing intervals,

Eylea HD sales in the United States surged 52% year over year to $596 million in the second quarter of 2026, driven by strong uptake following recent FDA label expansions and growing physician confidence in its differentiated profile and flexible dosing regimen.

In April 2026, the FDA approved the extension of dosing intervals for Eylea HD to up to every 20 weeks (5 months) for patients with wet age-related macular degeneration (wAMD) and diabetic macular edema (DME) following a year of successful response based on visual and anatomic outcomes.

The regulatory body had earlier approved Eylea HD for the treatment of macular edema following retinal vein occlusion (RVO), with dosing of up to once every eight weeks after an initial monthly dosing phase. The FDA also approved a monthly dosing option for certain patients who may benefit from resuming this dosing schedule across all currently approved indications, including wet age-related macular degeneration, DME, diabetic retinopathy and RVO.

Eylea and Eylea HD were co-developed with Bayer BAYRY.

Regeneron records net product sales in the United States, while Bayer records sales outside the country. It expects a further decline in Eylea sales in the second half of 2026 due to ongoing conversion to Eylea HD and increasing competition as multiple biosimilar versions enter the U.S. market.

Strong Dupixent Sales Fuel REGN Profits

REGN’s top line also comprises its share of profits/losses in connection with the global sales of Dupixent. Partner Sanofi records global net product sales of Dupixent.

Dupixent continues to deliver strong growth across key indications, including atopic dermatitis, asthma, nasal polyps and eosinophilic esophagitis, while newer uses such as COPD, chronic spontaneous urticaria, bullous pemphigoid and allergic fungal rhinosinusitis are gaining traction.

Ongoing label expansions for Dupixent remain a key contributor to revenue visibility and profitability.

Regeneron Strengthens Its Oncology Portfolio

Regeneron’s oncology franchise is anchored by its PD-1 inhibitor Libtayo (cemiplimab-rwlc), which is approved for use in certain patients with advanced basal cell carcinoma (BCC), advanced cutaneous squamous cell carcinoma (CSCC) and advanced non-small cell lung cancer (NSCLC).

Libtayo sales continue to be robust, driven by strength across non-melanoma skin cancers and NSCLC. The recent adjuvant CSCC launch is gaining positive physician feedback, while Libtayo’s share of new U.S. first-line NSCLC patient starts has doubled since early 2025 to 20%. Continued uptake across CSCC and potential share gains in lung cancer indication should support growth in the second half of 2026.

The oncology portfolio received an additional boost with the FDA’s accelerated approval of linvoseltamab-gcpt for the treatment of relapsed or refractory multiple myeloma under the brand name Lynozyfic. The drug is also approved in the European Union for adults with relapsed or refractory multiple myeloma who have received at least three prior lines of therapy, including a proteasome inhibitor, an immunomodulatory agent and an anti-CD38 monoclonal antibody.

Regeneron also has a deep pipeline of promising candidates, and additional drug approvals are expected to support the top line.

REGN: Valuation & Estimates

Going by the price/earnings ratio, shares currently trade at 16.80X forward earnings, lower than its mean of 19.67X and the large-cap pharma industry’s value of 18.91X.

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The bottom-line estimate for 2026 has moved north over the past 60 days to $53.11 and the same for 2027 has jumped $7.75.

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Stay Invested in Regeneron

REGN is among the largest biotechnology companies in the sector. Ongoing label expansions for Dupixent continue to drive strong sales growth and contribute meaningfully to profitability. At the same time, the strong uptake of Eylea HD has enabled Regeneron to mitigate the impact of declining sales of Eylea amid rising competition.

Progress across its oncology portfolio should support greater diversification of revenues and reduce reliance on any single franchise. The recent pipeline momentum and favorable regulatory developments have improved the outlook.

However, after the recent rally, we believe the valuation fairly reflects the company’s strong growth prospects and pipeline potential. Although 2026 and 2027 earnings estimates have risen, ongoing Eylea pressure and competitive risks warrant a balanced stance.

Hence, we advise prospective investors to wait and observe for a while before turning positive. Investors already holding the stock may find it prudent to stay invested.

REGN currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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