Regeneron Pharmaceuticals (REGN) shares soared to a fresh two-year high on Oct. 30 after blockbuster inflammation drug Dupixent powered a substantial Q3 earnings beat. Developed in collaboration with Sanofi (SNY), the treatment brought in roughly $6.5 billion in quarterly sales, handily beating the $6.1 billion consensus estimate.
Versus its year-to-date low, Regeneron stock is now trading roughly 50% higher.
More Top Stocks Daily: Go behind Wall Street’s hottest headlines with Barchart’s Active Investor newsletter.
www.barchart.comWhat Drove Regeneron Stock to a New High
Regeneron recorded $20.07 in earnings per share (EPS) on $5.12 billion in revenue for its fiscal Q3, both ahead of Street estimates. Earnings increased 70%, outpacing revenue growth of 36%. Dupixent’s prescription momentum signals continued underlying demand, although favorable U.S. pricing adjustments also contributed to sales.
Meanwhile, high-dose Eylea’s U.S. revenue came in up 62% at $699 million, exceeding the standard formulation’s $400 million. Combined U.S. Eylea revenue still slipped 1%, so the franchise has yet to return to growth. That said, the newer formulation’s expansion offers evidence that REGN can defend an important business while Dupixent drives its broader earnings momentum.
Why Investors Should Wait for a Pullback in REGN Shares
Regeneron shares’ post-earnings surge raises the bar for the company’s next catalyst.
Leerink Partners analyst David Risinger described the earnings as exceptional, but maintained a “Market Perform” rating, underscoring the distinction between strong business performance and an attractive entry price.
RBC’s Brian Abrahams similarly argued that pipeline success would be needed to propel REGN beyond its recent advance. Investors should also distinguish repeatable demand growth from favorable gross-to-net pricing adjustments, which may not provide the same benefit every quarter.
Even from a technical perspective, Regeneron’s relative strength index (RSI) now sits in the late 70s, indicating overbought conditions that often trigger a near-term selloff.
What’s the Consensus Rating on Regeneron Pharmaceuticals?
Wall Street analysts also seem to believe that Regeneron’s ongoing rally has gone a bit too far.
While the consensus rating on REGN stock remains at “Moderate Buy,” the mean price objective of about $869 signals potential downside of about 6% from current levels.
www.barchart.com On the date of publication, Wajeeh Khan did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
If Taiwan Semi Raises Prices, It Could Be Bad News for Intel Stock. Here’s Why. Why Wedbush Is Betting Big on SK Hynix Stock After Earnings Lumentum Jumped on Reports Marvell Is in Late-Stage Talks to Acquire the Company. LITE Stock Is a Buy No Matter What. Regeneron Stock Just Hit a 2-Year High. Here's Why.