Investment firm Baird has adjusted its price target for Regeneron Pharmaceuticals (REGN, Financial), reducing it from $759 to $652 while maintaining a Neutral rating for the company's stock. This adjustment comes as the firm anticipates that the performance of Eylea HD, a key product, will significantly influence market sentiment leading up to the company's first-quarter earnings report.
The revision suggests a tempered outlook reflecting current market conditions or company performance expectations, though Baird continues to view Regeneron's stock without a strong buy or sell stance. Investors will likely keep a close watch on any developments regarding Eylea HD, as these could impact the stock's performance in the near term.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 25 analysts, the average target price for Regeneron Pharmaceuticals Inc (REGN, Financial) is $874.12 with a high estimate of $1,100.00 and a low estimate of $547.00. The average target implies an upside of 45.75% from the current price of $599.76. More detailed estimate data can be found on the Regeneron Pharmaceuticals Inc (REGN) Forecast page.
Based on the consensus recommendation from 28 brokerage firms, Regeneron Pharmaceuticals Inc's (REGN, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Regeneron Pharmaceuticals Inc (REGN, Financial) in one year is $901.75, suggesting a upside of 50.35% from the current price of $599.76. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Regeneron Pharmaceuticals Inc (REGN) Summary page.
REGN Key Business Developments
Release Date: February 04, 2025
- Revenue Growth: 10% year-over-year increase to $3.8 billion in Q4 2024.
- Net Income: $1.4 billion in Q4 2024, with diluted net income per share of $12.07.
- Full Year Revenue: $14.2 billion for 2024, excluding Ronapreve revenues.
- EYLEA and EYLEA HD Sales: Combined US net sales of $1.5 billion in Q4 2024.
- Libtayo Sales: Global net sales of $1.2 billion for 2024, with $367 million in Q4.
- Dupixent Sales: Worldwide net sales of $3.7 billion in Q4 2024, with US sales at $2.7 billion.
- Gross Margin: 86% on net product sales in Q4 2024.
- Free Cash Flow: Approximately $3.7 billion generated in 2024.
- Cash and Marketable Securities: $15.2 billion less debt at the end of 2024.
- Share Repurchase Authorization: Additional $3 billion, increasing capacity to $4.5 billion.
- Quarterly Dividend: Initiation with $0.88 per share, equivalent to $3.52 annually.
- 2025 R&D Spend Guidance: $5 billion to $5.2 billion.
- 2025 SG&A Guidance: $2.55 billion to $2.7 billion.
- 2025 Gross Margin Guidance: 87% to 88% on net product sales.
- 2025 Capital Expenditures Guidance: $850 million to $975 million.
- 2025 Effective Tax Rate Guidance: 11% to 13%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Regeneron Pharmaceuticals Inc (REGN, Financial) reported a strong fourth quarter with 10% revenue growth, driven by key franchises like Dupixent, Libtayo, and EYLEA.
- The company has a robust pipeline with approximately 40 product candidates across various therapeutic areas, showcasing significant future potential.
- Dupixent continues to be a transformative medicine with over 1 million patients worldwide and is well-positioned for future growth with new indications.
- Regeneron Pharmaceuticals Inc (REGN) announced the initiation of a quarterly cash dividend program and an additional $3 billion share repurchase authorization, reflecting confidence in future cash flows.
- The company is advancing several promising R&D programs, including pivotal data expected for Linvoseltamab in multiple myeloma and odronextamab in follicular lymphoma.
Negative Points
- Regeneron Pharmaceuticals Inc (REGN) faces ongoing competitive pressure in the anti-VEGF category, particularly affecting EYLEA sales.
- The company anticipates continued market dynamics that may put downward pressure on EYLEA business due to biosimilar competition.
- There are concerns about the safety profile of some pipeline products, such as the complement programs, which have shown class-specific adverse events.
- The company expects increased operating expenses in 2025, driven by costs to support the expanding late-stage pipeline and international expansion.
- Regeneron Pharmaceuticals Inc (REGN) does not provide specific guidance on sales erosion expectations for the EYLEA franchise, leaving some uncertainty for investors.
