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    REGN
    Earnings call· Sep 2025(Q3 FY25)

    REGENERON PHARMACEUTICALS, INC. REGN

    Oct 28, 2025 Source

    Executive summary

    Regeneron Q3 FY25 — Strong Product Growth and Pipeline Advancements Amid Regulatory Headwinds

    Regeneron delivered a solid third quarter, marked by robust growth in Dupixent and Libtayo, and record sales for EYLEA HD, despite ongoing affordability challenges and a regulatory setback for EYLEA HD's prefilled syringe. The company continues to advance a broad pipeline with multiple positive clinical readouts and aggressive plans for early-line oncology and new therapeutic areas, while engaging in constructive discussions with the U.S. government on drug costs and domestic manufacturing.

    Highlights

    5
    • Worldwide net product sales for Dupixent increased by 26% at constant exchange rates compared to Q3 FY24.

    • Worldwide net product sales for Libtayo increased by 24% at constant exchange rates compared to Q3 FY24.

    • EYLEA HD U.S. net product sales reached an all-time high of $431 million, growing 10% quarter-over-quarter.

    • Regeneron generated $3.2 billion in free cash flow through the first 9 months of 2025.

    • Lynozyfic demonstrated a 100% objective response rate in 19 evaluable high-risk smoldering myeloma patients in Phase II.

    Concerns

    4
    • EYLEA HD received a Complete Response Letter (CRL) from the FDA due to unresolved inspection findings at Catalent Indiana, LLC.

    • EYLEA U.S. net sales decreased 10% quarter-over-quarter to $681 million, reflecting demand decline and pricing pressure.

    • The matching program for the Good Days Retinal Vascular and Neovascular Disease Fund only received under $1 million in third-quarter donations, despite Regeneron's commitment of up to $200 million.

    • Fianlimab pivotal trial results in metastatic melanoma are now anticipated in the first half of the coming year due to slower rates of event accrual.

    Guidance & targets

    15
    CategoryTargetConfidence
    Sanofi development balance reimbursement
    Fully reimbursed
    medium materiality
    High
    EYLEA HD sequential demand growth
    High single digits
    medium materiality
    Medium
    EYLEA demand decline
    Similar demand decline
    medium materiality
    Medium
    R&D expense increase
    Mid-teens percentage increase
    high materiality
    High
    Cemdisiran U.S. regulatory application submission
    Submission
    medium materiality
    High
    EYLEA HD alternate pre-filled syringe filler application submission
    Submission
    high materiality
    High
    EYLEA HD alternate vial filler PDUFA date
    Late December
    high materiality
    High
    Geographic atrophy (GA) Phase III study enrollment completion
    Complete enrollment
    medium materiality
    High
    Geographic atrophy (GA) Phase III study initial results
    Expected
    medium materiality
    High
    Garetosmab U.S. regulatory submission
    Submission
    medium materiality
    High
    OTOF gene therapy U.S. regulatory submission
    Finalizing preparations
    medium materiality
    High
    Factor XI pivotal studies launch
    Set to launch
    medium materiality
    High
    Alpha-synuclein siRNA clinical trials start
    Begin clinical trials
    low materiality
    High
    MAPT-tau siRNA clinical trials start
    Begin clinical trials
    low materiality
    High
    Capital return to shareholders
    Approximately $4 billion
    high materiality
    High

    Segment performance

    8
    SegmentRevenueYoYQoQMargin
    Dupixent (Worldwide)
    Strong growth continuing across approved indications and geographic regions, positioning it as a strong growth driver.
    Patients treated globally: 1.3 millionApproved indications in US: 8 distinct diseasesPotential US patients: 4 million
    $4.9 billion26% (constant currency)
    Dupixent (U.S.)
    Maintained leadership position and strong uptake across recent launches in COPD, chronic spontaneous urticaria, and bullous pemphigoid.
    Market leadership: new-to-brand prescription shareMarket leadership: total prescription share across all indications approved prior to this year
    $3.6 billion28%
    Libtayo (Worldwide)
    Supported by strong demand across all approved indications and ongoing launches in international markets.
    $365 million24% (constant currency)
    Libtayo (U.S.)
    Strong performance based on established market leadership and encouraging early progress with adjuvant CSCC launch.
    Market leadership: non-melanoma skin cancersMarket share: second most commonly prescribed immunotherapy for newly diagnosed lung cancer patientsAddressable patients in adjuvant CSCC: up to 10,000
    $219 million12%
    Libtayo (Ex-U.S.)
    Sales supported by sustained demand and ongoing launches in international markets.
    $146 million47% (constant currency)
    EYLEA HD (U.S.)
    Achieved an all-time high in net product sales, driven by robust physician unit demand growth, partially offset by lower net price.
    Unit demand growth: 18% QoQShare of Regeneron's U.S. retina franchise: approximately 40%
    $431 million10%
    EYLEA (U.S.)
    Reflects a commensurate decline in unit demand driven by conversion to EYLEA HD, patient affordability issues, and competitive dynamics.
    Unit demand: declined commensurate with sales
    $681 million-10%
    EYLEA and EYLEA 8 mg (Outside U.S.)
    Sales inclusive of EYLEA 8 mg, reported through the Bayer collaboration.
    EYLEA 8 mg sales: $232 million
    $854 million

    Operational metrics

    21
    Sanofi collaboration revenue (total)
    $1.6 billion
    Q3 FY25

    Total revenues from the Sanofi collaboration.

    Sanofi collaboration profit share
    $1.5 billion34% YoY growth
    Q3 FY25

    Regeneron's share of collaboration profits, driven by Dupixent sales growth and improving collaboration margins.

    Sanofi development balance
    $900 millionReduced by $300 million since Q2 FY25; Reduced by $730 million since start of FY25
    End of Q3 FY25

    Balance at the end of the third quarter, with rapid reimbursement expected.

    Bayer collaboration revenue (total)
    $345 million
    Q3 FY25

    Total revenues from the Bayer collaboration.

    Bayer collaboration profit share
    $312 million
    Q3 FY25

    Regeneron's share of net profits outside the U.S. from the Bayer collaboration.

    Other revenue
    $198 millionIncreased from prior year
    Q3 FY25

    Includes $165 million of profit share and royalties from license agreements, driven by higher royalty income from Alaris and growth in ARCALYST profits.

    R&D expense
    $1.3 billion
    Q3 FY25

    Reflecting continued investments to support the late-stage pipeline.

    SG&A expense
    $541 millionDown 12% from prior year
    Q3 FY25

    Primarily driven by lower charitable contributions to an independent nonprofit patient assistance foundation.

    Gross margin on net product sales
    86%Lower vs prior year
    Q3 FY25

    Reflects a change in product mix and higher ongoing investments to support manufacturing operations.

    Cash and marketable securities less debt
    $16 billion
    End of Q3 FY25

    Balance at the end of the quarter.

    Share repurchases
    $2.8 billionMost ever allocated to open market repurchases in any full fiscal year
    First 9 months of 2025

    Executed through the first 9 months of 2025.

    Dupixent potential US patients
    4 million
    Ongoing

    Approved indications could potentially address this many patients.

    Cat allergy patients (severe)
    1.6 million
    Ongoing

    Potential beneficiaries of cat allergy therapies.

    Birch allergy patients (severe)
    1.4 million
    Ongoing

    Potential beneficiaries of birch allergy therapies.

    Lynozyfic objective response rate
    100%
    Phase II

    Demonstrated in high-risk smoldering myeloma patients with Lynozyfic monotherapy.

    Lynozyfic molecular complete response rate
    100%
    Phase II

    Achieved by all patients followed for at least 1 year in high-risk smoldering myeloma.

    Lynozyfic overall response rate
    83%
    Monotherapy

    Demonstrated as monotherapy in newly diagnosed multiple myeloma patients, with responses deepening over time.

    Odronextamab complete response rate
    100%
    Lead-in cohort

    Demonstrated in the lead-in cohort for the Phase III study in first-line follicular lymphoma.

    Garetosmab reduction in abnormal bone formation
    >99%
    56 weeks

    Observed in the Phase III OPTIMA trial.

    OTOF gene therapy hearing gains
    Meaningful in 11 out of 12
    Clinical trial

    Meaningful hearing gains in treated children, with several achieving normal hearing levels.

    US manufacturing investment
    $7 billion
    Coming years

    Planned investment in infrastructure and manufacturing facilities.

    Industry KPIs

    8
    MetricValueDetails
    Launch access metricsProgressing very well
    Pipeline read out calendarMultiple positive readouts
    Regulatory approvals filingsApproved
    Therapeutic drug market shareLeadership position
    Prescription volume new startsLeadership position
    Clinical trial efficacy safety dataStatistically significant and clinically meaningful outcomes
    Collaboration milestone royalty revenue$165 millionUSD
    Cumulative patients uptake since launch1.3 millionpatients

    Deals & partnerships

    3
    SanofiDevelopment and commercialization of Dupixent.

    Beginning with the Sanofi collaboration, revenues were approximately $1.6 billion, of which $1.5 billion related to our share of collaboration profits.

    BayerCommercialization of EYLEA and EYLEA 8 mg outside the U.S.

    Moving to Bayer. Third quarter net sales of EYLEA and EYLEA 8 mg outside the U.S. were $854 million, inclusive of $232 million of EYLEA 8 mg sales. Total Bayer collaboration revenue was $345 million, of which $312 million related to our share of net profits outside the U.S.

    AlarisResearch collaboration for siRNA portfolio.

    Other revenue in the third quarter was $198 million, which included $165 million of profit share and royalties associated with license agreements. The increase from the prior year was driven by higher royalty income from Alaris and growth in our share of profits from ARCALYST.

    Risks & headwinds

    6
    Affordability issues dampening anti-VEGF category growthOngoing

    EYLEA HD U.S. net product sales of $431 million were partially offset by a lower net price; EYLEA U.S. net sales decreased 10% QoQ.

    Mitigation: Initiated matching program for up to $200 million in contributions to the Good Days Retinal Vascular and Neovascular Disease Fund.

    Unresolved inspection findings at Catalent Indiana, LLC leading to EYLEA HD prefilled syringe sBLA Complete Response LetterImmediate impact, ongoing until resolved.

    CRL issued for prefilled syringe sBLA.

    Mitigation: Plan to submit application for alternate pre-filled syringe filler by January 2026; submitted application for alternate vial filler with PDUFA date in late December.

    Slower event accrual for fianlimab pivotal trial in metastatic melanomaH1 2026

    Results anticipated in H1 2026, later than initially expected.

    Competitive pricing pressures in anti-VEGF categoryOngoing

    EYLEA HD unit demand grew 18% QoQ, "partially offset by ongoing competitive pricing pressures"; EYLEA U.S. net sales decreased 10% QoQ, reflecting "competitive dynamics."

    Mitigation: Focus on EYLEA HD's efficacy, safety, and durability; awaiting label enhancements.

    Potential for meningococcal infections with C5 inhibitorsLong-term

    N/A

    Mitigation: Cemdisiran only partially inhibits the complement pathway, potentially offering safety benefits.

    Potential for serious infections (e.g., EBV resurgence) with FcRn class therapiesLong-term with longer usage

    N/A

    What to watch in Q4 FY25

    5

    EYLEA HD label enhancements approval

    Late December / Q1 2026
    CurrentCRL received for prefilled syringe sBLA; alternate vial filler PDUFA in late Dec.
    TargetApproval of 4-week dosing and RVO indication

    Why it matters

    Critical for unlocking EYLEA HD's full commercial potential and driving significant demand inflection.

    Looking ahead to the fourth quarter for EYLEA HD, we anticipate sequential demand growth to moderate to high single digits as we await label enhancements. Once approved, we believe these enhancements have the potential to generate a significant positive inflection in demand.

    Q&A highlights

    7

    What specific ground-level commercial strategies (volume-based discounts) are driving EYLEA HD's share gains against competitors, and is price erosion affecting EYLEA HD as well as EYLEA? Will volume gains continue ahead of label enhancements?

    Management declined to provide specific details on commercial strategy due to competitive issues but highlighted EYLEA HD's clinical efficacy, safety, and durability as key drivers. They anticipate EYLEA HD sequential demand growth to moderate to high single digits until label enhancements are approved, and EYLEA demand decline to continue.

    I think that there's so many competitive issues ongoing there in terms of our strategy on the ground, our rebates and so forth. So I'm not sure we're able to really help you out there.

    asked by Akash Tewari · answered by Leonard Schleifer

    2 min read7 chapters

    Detailed Narrative

    01

    Dupixent's Broad Impact and Growth Trajectory

    Dupixent continues to demonstrate strong global growth, with worldwide net sales reaching $4.9 billion (up 26% constant currency) and U.S. net sales at $3.6 billion (up 28% YoY). It maintains market leadership across established indications and is approved for 8 distinct type 2 inflammatory diseases in the U.S., treating over 1.3 million patients globally. The drug's approved indications could address over 4 million U.S. patients, positioning it as a significant long-term growth driver.

    02

    EYLEA HD Regulatory Challenges and Commercial Strategy

    EYLEA HD achieved record U.S. net sales of $431 million, driven by robust physician demand despite competitive pricing. However, its prefilled syringe sBLA received a Complete Response Letter due to unresolved inspection findings at a Catalent facility. Regeneron is pursuing an alternate prefilled syringe filler submission by January 2026 and an alternate vial filler with a PDUFA date in late December to address these issues and unlock full commercial potential through label enhancements like 4-week dosing and RVO indication.

    03

    Libtayo's Expanding Oncology Footprint

    Libtayo global net sales grew 24% constant currency to $365 million, with U.S. sales up 12% to $219 million. It maintains market leadership in non-melanoma skin cancers and is gaining share in lung cancer. The recent FDA approval for adjuvant cutaneous squamous cell carcinoma (CSCC) makes it the first and only PD-1 antibody for this setting, with an estimated 10,000 addressable patients in the U.S., marking a strong early launch.

    04

    Aggressive Pipeline Advancement and Strategic Investments

    Regeneron reported positive Phase III or registration-enabling data for 6 distinct programs in immunology, neurology, allergy, and rare diseases. The company plans to rapidly expand pivotal programs in hematology/oncology, thrombosis, obesity, metabolic diseases, and allergies. Significant R&D investments are ongoing, with a projected mid-teens percentage increase in R&D expense for 2026 to support these efforts.

    05

    Commitment to Domestic Manufacturing and Drug Cost Discussions

    Regeneron is engaged in constructive discussions with the U.S. government to lower drug costs while preserving innovation and strengthening domestic manufacturing. The company has committed over $7 billion to infrastructure and manufacturing facilities in New York and North Carolina, aligning with the administration's goals to ensure equitable global burden-sharing for drug development and safeguard national security.

    06

    Lynozyfic's Potential in Multiple Myeloma

    Lynozyfic, a BCMAxCD3 bispecific, has been approved for relapsed/refractory multiple myeloma in the U.S. and EU, showing potential for best-in-class efficacy in late-line settings. Promising Phase II results in high-risk smoldering myeloma (100% ORR) and newly diagnosed patients (83% ORR) support a planned Phase III head-to-head study against Darzalex and aggressive pursuit of earlier treatment lines.

    07

    Cemdisiran's Best-in-Class Potential for gMG

    The C5 siRNA cemdisiran demonstrated statistically significant Phase III results for generalized myasthenia gravis (gMG) with convenient subcutaneous quarterly dosing. Its efficacy, safety, and convenience profile position it as a potential best-in-class treatment option, with a U.S. regulatory application planned for Q1 2026.

    AI-generated summary of the company’s earnings call. Not investment advice.