Regeneron Pharmaceuticals, Inc. (REGN): A Bull Case Theory
We came across a bullish thesis on Regeneron Pharmaceuticals, Inc. on Value investing subreddit by Significant-Foot3928. In this article, we will summarize the bulls’ thesis on REGN. Regeneron Pharmaceuticals, Inc.'s share was trading at $589.48 as of August 22nd. REGN’s trailing and forward P/E were 14.86 and 16.18 respectively according to Yahoo Finance.
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Regeneron Pharmaceuticals operates as a fully integrated biotech, designing, developing, manufacturing, and commercializing its own medicines, with leading products including EYLEA/EYLEA HD (ophthalmology), Libtayo (oncology), and Dupixent (immunology). The company maintains a long-standing alliance with Sanofi on Dupixent, sharing profits and global commercialization.
In 2024, Regeneron initiated a quarterly dividend (~0.67% yield) and expanded its $4.5 billion buyback program, signaling strong shareholder alignment. Its main competitors include Roche, Eli Lilly, Amgen, Biogen, and Gilead across ophthalmology, immunology, and oncology, while threats such as biosimilars, regulatory setbacks, and reimbursement pressures persist.
Regeneron’s financials show resilience and growth: total revenue reached $3.676 billion in Q2 2024, up 4% year-over-year, with GAAP net income of $1.392 billion (-3% YoY) and non-GAAP net income of $1.424 billion (+5% YoY). Non-GAAP EPS rose 12% to $12.89. Dupixent continues as the key growth driver, with global net sales up 22% to $4.34 billion, while EYLEA HD U.S. sales increased 29% despite a 25% decline in the legacy EYLEA franchise. Libtayo net sales grew 27% YoY to $377 million. The rising contribution from newer products demonstrates successful portfolio diversification, while margins remain stable and R&D investment continues.
Regeneron is attractively valued at a forward P/E of 12.6x, well below peers trading in the high teens or 20s. Its balance sheet is strong, with a D/E ratio of 0.07, $10 billion in cash and marketable securities, and a current ratio exceeding 5x. Proprietary platforms like VelociSuite and TRAP, along with partnerships with Sanofi and BARDA, create durable moats. Founder-led management with substantial insider ownership aligns incentives, reinforced by robust capital returns. Analysts rate it a moderate buy, and the combination of strong franchises, diversified pipeline, attractive valuation, healthy cash flow, and shareholder-friendly capital returns makes Regeneron a compelling long-term investment.
Previously we covered a bullish thesis on Sarepta Therapeutics, Inc. (SRPT) by Magnus Ofstad in January 2025, which highlighted the company’s leadership in Duchenne muscular dystrophy, robust revenue growth, and acquisition potential. The company's stock price has depreciated approximately by 82.86% since our coverage. This is because the thesis did not fully play out amid market and execution challenges. Significant-Foot3928 shares a similar perspective but emphasizes Regeneron Pharmaceuticals’ diversified franchise, proprietary platforms, and strong shareholder returns.
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