Key Takeaways
Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN) reported first-quarter revenue of $3.61 billion, a 19% increase year-over-year, as surging sales from its cancer drug Libtayo and its Dupixent collaboration offset declines in its flagship Eylea eye treatment franchise.
"Regeneron delivered strong first quarter 2026 financial results, achieving total revenue and non‑GAAP net income per share growth of 19% and 15%, respectively," said Christopher Fenimore, Executive Vice President, Finance and Chief Financial Officer of Regeneron, in a statement.
The Tarrytown, New York-based biotechnology firm posted non-GAAP earnings of $9.47 per share, up 15% from the prior year. Revenue growth was primarily driven by a 36% increase in collaboration revenue from Sanofi to $1.61 billion, fueled by the blockbuster immunology drug Dupixent. Global sales of the cancer treatment Libtayo also surged 54% to $438 million. This helped to counter a 10% drop in combined U.S. sales for Eylea and Eylea HD to $941 million.
The results highlight Regeneron's successful diversification beyond its aging Eylea franchise. While the original Eylea patent faces competitive pressure, the transition to its higher-priced successor, Eylea HD, is underway with U.S. sales growing 52% to $468 million. Investors will watch if this transition and a pipeline of nearly 50 candidates can sustain momentum, a positive sign in a biotech sector where competitor Ionis Pharmaceuticals also recently raised its 2026 revenue guidance.
For the full year 2026, Regeneron lowered its guidance for GAAP gross margin on net product sales to a range of 77% to 78%, down from a prior forecast of 79% to 80%. However, the company's board authorized a new $3.0 billion share repurchase program in April, adding to the $688 million remaining under its previous program as of March 31. The company also declared a cash dividend of $0.94 per share.
The lowered gross margin guidance suggests cost pressures may be a factor for the remainder of the year, but the new buyback authorization signals confidence from management. Investors will continue to monitor the Eylea HD adoption rate and Dupixent's powerful growth trajectory in the upcoming quarters.
This article is for informational purposes only and does not constitute investment advice.
