Has Regeneron Stock Become A Different Bet

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Regeneron Pharmaceuticals (REGN) stock trades at 19.2 times earnings, against 22.9 for the S&P 500. Shareholders paying that price need to know what they are buying, and the company's priorities have changed. As recently as its February 2025 call, management discussed preserving market share for EYLEA, then its biggest eye drug. Now it emphasizes something else. So what does management talk up instead?

Management Now Highlights EYLEA HD Passing EYLEA

During its July 30, 2026 call for the second quarter, management highlighted that the newer EYLEA HD had outsold EYLEA for the first time. On the February 2025 call, the company had paired growth for EYLEA HD with keeping EYLEA's market share. The older drug was worth guarding at the time, bringing in 33.6% of Regeneron's 2024 revenue.

Management expects EYLEA to keep losing ground. On its July 30 call, it said it expected demand for EYLEA to fall by a low to mid-teens percentage from one quarter to the next in the second half of 2026. This decline is partly because of more biosimilars, which are close copies sold by other drugmakers.

How Big Are Regeneron's Two Eye Drugs Now?

Over the full year 2025, EYLEA remained the larger drug, accounting for 19.2% of Regeneron's revenue against 11.4% for EYLEA HD. EYLEA's sales fell 42.4% from 2024, while EYLEA HD's rose 36.3%. The newer drug started from a much smaller base at 8.5% of 2024 revenue, so its gain made up only part of EYLEA's loss.

The balance tilts further toward the newer drug in the second quarter of 2026. U.S. sales of EYLEA HD rose 52% from a year earlier, while EYLEA's sales fell 45%. EYLEA HD now makes up about 60% of U.S. sales for the two drugs, compared with 34% a year earlier. Their combined U.S. sales rose 7% from the first quarter, though they remained below the year-earlier level.

Across the company, collaboration revenue, which includes Regeneron's share of profits from its Sanofi partnership, grew 21.0% in 2025. It made up 51.1% of revenue for the year.

Is EYLEA's Decline A Worry For Regeneron Holders?

Mostly not, because Regeneron has returned to growth even as EYLEA shrank. Revenue rose 16.7% from a year earlier in the second quarter of 2026. Management said that growth came from higher Sanofi collaboration revenue, on the strength of Dupixent, alongside gains for EYLEA HD and Libtayo.

The change does make Regeneron a different bet. Shareholders now hold a company that relies less on EYLEA and more on collaboration revenue, as well as on EYLEA HD keeping its pace. On its July 30 call, management said it expected EYLEA HD demand to grow by a low to mid-teens percentage from one quarter to the next in the third and fourth quarters of 2026. That is the same range as EYLEA's expected fall.

When the company reports the third quarter of 2026 on October 30, EYLEA HD's share of Regeneron's U.S. eye-drug sales will be the measure to watch.

Is Too Much Of Your Wealth Riding On One Stock?

What Regeneron Pharmaceuticals' management talks about has changed, and holders are left to work out why. When one position grows into a large part of your wealth, a sharp fall can hurt your whole plan, and selling to spread the money out can bring a large tax bill. Our partner advisory firm offers a free strategy review of ways to protect a concentrated position and unwind it with less tax.

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