Regeneron Pharmaceuticals

Methodology

Regeneron's earnings visibility centers on Eylea franchise strength offset by biosimilar threats, while Dupixent partnership with Sanofi drives growth. Pipeline execution in obesity and oncology creates uncertainty. Evaluate sustainable earnings considering Eylea HD transition, Dupixent expansion potential, and probability-adjusted pipeline rather than extrapolating current profitability.

Methodology

Regeneron typically trades at moderate PEG ratios reflecting strong Dupixent growth offset by Eylea biosimilar risks and pipeline uncertainty. The metric should account for Eylea HD adoption, international Dupixent expansion, and obesity pipeline progress. Compare to large-cap biotech peers while considering unique Sanofi partnership economics and VelocImmune platform potential.

Methodology

Regeneron pays no dividend, making PEGY equal to PEG as management prioritizes R&D investments in obesity, oncology, and other pipeline opportunities. Capital allocation focuses entirely on drug development and platform expansion. For this biotech innovator, pipeline execution and Dupixent trajectory matter far more than current shareholder income.