Regeneron's 36% Growth and Pipeline Promise: Time to Buy REGN?

Regeneron Pharmaceuticals (REGN) reported third-quarter 2026 earnings on October 30, 2026, showcasing remarkable growth. Total revenue reached $5.1 billion, up 36% year-over-year, driven by its commercial portfolio and genetics discovery engine.

Dupixent, the blockbuster anti-inflammatory drug, continued its stellar performance with global net sales of $6.5 billion, a 35% increase at constant currency. Management also extended its development alliance with Sanofi to co-fund next-generation therapies, securing a core cash flow stream.

EYLEA HD, the high-dose treatment for retinal diseases, is rapidly gaining traction. U.S. net sales hit $699 million, up 62% year-over-year, with physician unit demand growing 20% sequentially. This offsets declining sales of the original EYLEA formulation amid rising competition.

The company's internal genetics engine is yielding promising results. Early-stage data for an siRNA therapy targeting CIDEB in nonalcoholic steatohepatitis (NASH) showed a ~70% reduction in liver fat after 12 weeks in 40 participants, bringing mean liver fat to near or below normal levels.

Looking ahead, Regeneron plans to increase research spending by a mid-teens percentage in 2027 to fund 15 late-stage clinical trials. Management emphasized that its commercial infrastructure already reaches major medical specialties, allowing new pipeline candidates to launch without heavy commercial building costs.

The 36% revenue growth demonstrates Regeneron's ability to scale its commercial portfolio while investing in future growth. Dupixent's record sales, despite nearing a decade on the market, underscore its durable competitive advantage and the effectiveness of the Sanofi alliance extension.

EYLEA HD's rapid adoption is critical as it transitions the franchise away from the original EYLEA, which faces biosimilar competition. The 62% growth in HD sales and 20% sequential unit growth show strong physician acceptance, mitigating revenue erosion risks.

The early NASH data from the genetics pipeline is a potential game-changer. A one-time siRNA treatment that reduces liver fat by ~70% could address a massive unmet need. While early-stage, it validates Regeneron's discovery engine and opens a new therapeutic area.

Increased R&D spending in 2027 may pressure near-term earnings, but funding 15 late-stage trials signals a deep pipeline that could drive long-term growth. The company's existing commercial infrastructure provides operating leverage, as new drugs can be launched efficiently.

Overall, these results reinforce Regeneron's position as a biotech leader with multiple growth drivers, supporting a bullish long-term investment thesis.