Orin
REGNNasdaq·Biotechnology

Regeneron Pharmaceuticals, Inc. REGN

Market cap $81.1BP/E 19.0× trailingGross margin 84.9%Reports Wed 28 Oct, before the open
$786.90
−9.12 (−1.15%)live 11:25 ET
52-wk $541.00 – $859.34
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Orin's take
0.62conviction · moderate
Refreshed 17 Aug · take v6. A new filing or a print queues the next refresh.

Regeneron remains a hold: the stock has rallied sharply to $803 with RSI at 77.3 (deeply overbought) and trades at a ~18% PE premium to the peer median (19.2x vs 16.3x), despite operating income declining for four straight years from $8.95B in 2021 to $3.58B in 2025 and 2025 revenue of $14.34B representing just ~1% growth over 2024. Multiple securities class action lawsuits tied to the failed Phase 3 Fianlimab-Libtayo melanoma trial—which triggered an ~$11B market cap wipeout—create legal overhang, and insiders have been net sellers ($229M over 24 months with no cluster buying).

However, $4.08B in free cash flow, recovering EPS ($41.48 in 2025 vs $34.77 in 2023), and promising GLP-1 pipeline candidates justify staying engaged rather than exiting.

What could go wrong

  • Class action litigation outcome. Multiple securities class action lawsuits filed covering Aug 1, 2025–May 15, 2026 period, tied to failed Phase 3 melanoma trial disclosures; lead plaintiff deadline Sept 14, 2026 could produce adverse headlines or settlements.
  • Operating margin compression. Operating income has declined every year from $8.95B (2021) to $3.58B (2025) while revenue stayed roughly flat, signaling eroding cost structure or mix shift.
  • Technical reversal risk. RSI at 77.3 and stock trading 19% above its 50-day MA ($675.78) leave it vulnerable to a sharp mean-reversion pullback.
  • EYLEA franchise erosion. Core EYLEA revenue faces biosimilar and competitive pressure; with top-line growth stalled at ~1%, any acceleration in erosion could be material.

What would change my mind

GLP-1 pipeline readout. Positive Phase 2/3 data from Regeneron's GLP-1 candidates validating a differentiated profilebullish
Operating income inflection. Quarterly operating income stops declining and shows YoY growth, reversing the four-year downtrendbullish
Class action settlement or dismissal. Material adverse ruling or large settlement in the Fianlimab-Libtayo securities litigationbearish
Insider buying cluster. Multiple insiders open-market purchase shares at current levels, reversing the 24-month net selling patternbullish

Where this comes from: FMP annual fundamentals · FMP annual fundamentals · Technical data as of 2026-08-14 · Peer relative composite. Orin's read on REGN; not advice.

Twelve months actual closes to 2026-09-24 · actual filings

Sept 25Nov 25Jan 26Mar 26May 26Jul 26

50-day average 200-day average · volume below

Largest holders · 13F Q2 2026

Money flow
FilerPositionOf fund
Vanguard Capital Management$4.1B0.1% of fund
State Street$3.0B0.1% of fund
Invesco$2.5B0.2% of fund
Jpmorgan Chase &$2.4B0.1% of fund
Vanguard Portfolio Management$2.0B0.1% of fund
Franklin Resources$1.7B0.4% of fund

97 filers · quarter ended Q2 2026 · positions, not flows

Insiders, last 24 months: 161 Form 4 filings, net −$242.6M. Of the 50 on hand, 0 were open-market purchases and 37 sales— the rest are grants, option exercises and tax withholding.

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Where it trades

vs its own 5y · Healthcare
MetricNowOwn medianSector
P/E19.0×17.8×26.4×
EV/EBITDA14.2×14.5×—
P/S5.28×5.63×—
P/B2.6×3.4×—

Its P/E sits 80th percentile of its own last 5 years (+0.40σ from its own mean).

What the price assumes

7.8%

free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $4.1B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.

What Wall Street published

49 firms · 2026-09-24
Consensus target

$828

$730 – $1030 · +5% against today's price

How they rate it
  • 34 buy or overweight
  • 15 hold
  • 0 underweight or sell

The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.

Against the companies it is compared to

median P/E 16.5× of 6 peers
CompanyMarket capP/EEV/EBITDAGrossNetROE
REGNRegeneron Pharmaceuticals, Inc.$82B19.0×14.2×84.9%27.9%14%
CICigna Corporation$70B10.9×8.1×11.7%2.3%15%
CORCencora, Inc.$60B22.9×13.5×3.7%0.8%106%
ELVElevance Health Inc.$86B17.7×13.4×39.0%2.5%11%
IDXXIDEXX Laboratories, Inc.$40B36.1×25.6×62.4%25.0%72%
INCYIncyte Corporation$25B15.3×10.4×92.6%27.7%30%
ZTSZoetis Inc.$29B11.6×9.6×70.9%27.5%69%

The median is of the 6 peers listed above and nothing else — check it against the column. This company trades 15.2% above it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.

What it has traded at

P/E by fiscal year
FY14 122.1×FY25 17.9×

What its sector has traded at

Healthcare
FY14 6.5×FY26 28.5×

Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.

Discounted cash flow

not recomputed since
ModelFair valueAgainstComputed
Standard DCF$2374$607.69 · +291%2026-06-10
Levered DCF$2568$607.69 · +323%2026-06-10

The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.

Every estimate on one scale

price $786.90
52-week range$541 – $859
Analyst targets$730 – $1030
Standard DCF$2374 as of 2026-06-10, when it was $607.69
Levered DCF$2568 as of 2026-06-10, when it was $607.69
At own 5y-median P/E (18×)$746
At 5y P/E range (8–24×)$346 – $993
At sector P/E (26×)$1106

The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.