Regeneron Stock Rises on Q2 Earnings and Sales Beat, Eylea HD Sales Up
REGN
) reported second-quarter 2025 adjusted earnings per share (EPS) of $12.89, which comfortably beat the Zacks Consensus Estimate of $8.03. The bottom line increased 12% from $11.56 recorded in the year-ago quarter.
The improvement can be attributed to higher revenues.
Total revenues grew 4% year over year to $3.7 billion due to higher sales of Eylea HD and increased Dupixent profits. Revenues also beat the Zacks Consensus Estimate of $3.3 billion. Sales of the oncology drug Libtayo also beat estimates.
Shares are trading up in response to the better-than-expected quarterly results.
Regeneron's shares have lost 23.4% year to date compared with the industry 's decline of 0.3%.
Eylea HD, Dupiexent Power REGN's Q2 Results
Eylea's sales in the United States plunged 39% year over year to $754 million, primarily due to increased competition from other drugs like Roche's (RHHBY) Vabysmo, loss in market share to compounded bevacizumab due to patient affordability constraints and transition of patients to higher doses of the drug (Eylea HD).
Nonetheless, Eylea sales in the United States beat the Zacks Consensus Estimate of $686 million.
Please note that Regeneron co-developed Eylea with the HealthCare unit of Bayer AG (
BAYRY
). Regeneron records net product sales of Eylea in the United States and Bayer does the same outside the country. The company records its share of profits in connection with Eylea sales outside the United States as collaboration revenues.
In August 2023, the FDA approved Eylea HD (higher dose of Eylea) for the treatment of patients with wet age-related macular degeneration, diabetic macular edema and diabetic retinopathy.
Eylea HD generated revenues of $393 million in the United States, up 29% year over year, due to higher sales volumes driven by increased demand. Eylea HD sales beat the Zacks Consensus Estimate of $320 million.
Total revenues include collaboration revenues of $1.9 billion from Sanofi (
SNY
) and Bayer. The figure increased 22.1% from that recorded in the year-ago quarter. Total collaboration revenues beat the Zacks Consensus Estimate of $1.7 billion.
Sanofi's collaboration revenues increased 26% to $1.44 billion, driven by profits associated with higher Dupixent sales. The figure beat the Zacks Consensus Estimate of $1.36 billion. We note that Sanofi records global net product sales of Dupixent and Kevzara, while Regeneron records its share of profits/losses in connection with the global sales of both drugs. Dupixent's sales increased 22% year over year to $4.3 billion.
Bayer's collaboration revenues totaled $415 million, up 11% year over year.
Regeneron records net product sales of Praluent in the United States and Sanofi does the same outside the country. SNY pays REGN a royalty on such sales. Regeneron records global net product sales of Libtayo and pays Sanofi a royalty on such sales.
Total Libtayo sales were $376.5 million, up 27% year over year. The figure beat the Zacks Consensus Estimate of $322 million.
Praluent's net sales in the United States were $65.8 million. Kevzara recorded global sales of $152.2 million, up 39% from the year-ago quarter's level.
Gross margin on net product sales decreased to 86% from 89% due to ongoing investments to support the manufacturing operations and higher inventory write-offs and reserves in the second quarter of 2025 compared to the second quarter of 2024.
Adjusted R&D expenses increased 20% year over year to $1.3 billion due to the advancement of the company's pipeline. Adjusted SG&A expenses decreased 19% to $542 million.
In February 2025, the board of directors authorized a new share repurchase program to repurchase up to an additional $3.0 billion of the common stock. During the second quarter of 2025, REGN repurchased shares for $1.07 billion. As of June 30, 2025, approximately $2.814 billion remained available for share repurchases.
Regeneron Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
Regeneron Pharmaceuticals, Inc. price-consensus-eps-surprise-chart | Regeneron Pharmaceuticals, Inc. Quote
REGN's Key Pipeline and Regulatory Updates
The FDA approved a label expansion of Dupixent for the treatment of adults with bullous pemphigoid. Regulatory applications are under review in the European Union (EU) and Japan.
In April, the FDA approved Dupixent for the treatment of adults and adolescents aged 12 years and older with chronic spontaneous urticaria who remain symptomatic despite antihistamine treatment.
Regeneron expects regulatory approvals to be delayed for its currently pending FDA applications for Eylea HD (pre-filled syringe, every-four-week dosing, and for the treatment of macular edema following retinal vein occlusion), which have target action dates in August 2025. The anticipated delay is related to observations from an FDA general site inspection at the filler for Eylea HD in these regulatory applications, Catalent Indiana LLC (which was recently acquired by Novo Nordisk).
In July 2025, the FDA granted accelerated approval to Lynozyfic (linvoseltamab) to treat adults with relapsed or refractory multiple myeloma who have received at least four prior lines of therapy. The drug is also approved in the EU for the same indication.
The FDA accepted for priority review a supplemental biologics license application (sBLA) for Libtayo (cemiplimab) in adjuvant CSCC, with a target action date in October 2025.
However, the FDA recently issued a complete response letter for the BLA for odronextamab, a bispecific antibody targeting CD20 and CD3, in relapsed/refractory follicular lymphoma after two or more lines of systemic therapy. The BLA was impacted by the Catalent Indiana LLC site inspection.
REGN recently entered into an in-licensing agreement for an obesity drug with Hansoh Pharmaceuticals Group Company Limited, in a bid to expand its clinical-stage obesity portfolio.
The licensing agreement with Hansoh Pharma provides Regeneron with HS-20094, a GLP-1/GIP receptor agonist.
Regeneron will acquire exclusive clinical development and commercial rights for HS-20094, a dual GLP-1/GIP receptor agonist, outside the Chinese Mainland, Hong Kong and Macau.
Our Take on REGN's Q2 Performance
Regeneron's performance in the second quarter was encouraging. The company has finally managed to post revenue growth despite declining sales of lead drug Eylea.
Eylea sales continue to be on the downslide due to competition from Vabysmo. We note that Vabysmo's uptake has been outstanding. Roche designed Vabysmo to block pathways involving Ang-2 and VEGF-A.
REGN is looking to strengthen its oncology portfolio to diversify its revenue stream.
The recent progress with its oncology pipeline has been encouraging. The approval of Lynozyfic is a boost for its oncology portfolio.
Zacks Rank
Regeneron currently carries a Zacks Rank #4 (Sell).
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