Is It Time To Buy Regeneron Pharmaceuticals Stock?

June 2nd, 2025 by Trefis Team

Regeneron Pharmaceuticals (NASDAQ:REGN) shares experienced a significant 19% drop on Friday, May 30, following the unexpected failure of itepekimab, its chronic obstructive pulmonary disease (COPD) treatment partnered with Sanofi, in a late stage clinical trial. One of the two trials failed to meet its primary endpoint, a major blow given that itepekimab was projected to be a blockbuster drug, with peak sales estimates from Sanofi ranging between $2 billion and $6 billion.

This recent development has compounded existing pressures on REGN stock. Currently trading at $490, the stock is down 60% from its 52-week high of around $1,200. Much of this decline can be attributed to the company’s weaker-than-expected performance, particularly concerning its existing blockbuster treatment, Eylea. Adding to Regeneron’s woes, the U.S. Food and Drug Administration (FDA) recently declined to approve a pre-filled syringe version of Eylea HD, citing issues with a third-party supplier.

Given the substantial fall in Regeneron’s stock price, the natural question arises: is REGN now an attractive buying opportunity? From a valuation perspective, the stock appears undervalued, suggesting a compelling entry point for investors. We believe there’s minimal cause for long-term concern with REGN stock, making its current valuation appealingly low.

Our conclusion is based on a comprehensive analysis comparing REGN’s current valuation with its recent operating performance and historical financial health. Our assessment of Regeneron Pharmaceuticals across key parameters—Growth, Profitability, Financial Stability, and Downturn Resilience—indicates that the company maintains a very strong operating performance and financial condition, as detailed further below. However, for investors who seek lower volatility than individual stocks, the Trefis High Quality portfolio presents an alternative — having outperformed the S&P 500 and generated returns exceeding 91% since its inception. Also, see – Buy, Sell, or Hold HIMS Stock?

Relevant Articles
  1. Is CAVA Stock’s Recent Rally Sustainable?
  2. Why Isn’t Chevron Stock Moving in 2025?
  3. What’s Next With Affirm Stock?
  4. What’s Behind Tilray’s 3.5X Surge?
  5. This Strategy Pays You 8.7% While Lining Up MPWR at Bargain Prices
  6. What Could Light a Fire Under Microsoft Stock

Image by Adam from Pixabay

How Does Regeneron Pharmaceuticals’ Valuation Look vs. The S&P 500?

Going by what you pay per dollar of sales or profit, REGN stock looks slightly cheap compared to the broader market.

  • Regeneron Pharmaceuticals has a price-to-sales (P/S) ratio of 4.6 vs. a figure of 3.0 for the S&P 500
  • Additionally, the company’s price-to-free cash flow (P/FCF) ratio is 16.4 compared to 20.5 for S&P 500
  • And, it has a price-to-earnings (P/E) ratio of 14.4 vs. the benchmark’s 26.4

How Have Regeneron Pharmaceuticals’ Revenues Grown Over Recent Years?

Regeneron Pharmaceuticals’ Revenues have declined marginally over recent years.

  • Regeneron Pharmaceuticals has seen its top line shrink at an average rate of 3.9% over the last 3 years (vs. increase of 5.5% for S&P 500)
  • Its revenues have grown 7.5% from $13 Bil to $14 Bil in the last 12 months (vs. growth of 5.5% for S&P 500)
  • Also, its quarterly revenues declined 3.7% to $3.0 Bil in the most recent quarter from $3.1 Bil a year ago (vs. 4.8% improvement for S&P 500)

How Profitable Is Regeneron Pharmaceuticals?

Regeneron Pharmaceuticals’ profit margins are much higher than most companies in the Trefis coverage universe.

Does Regeneron Pharmaceuticals Look Financially Stable?

Regeneron Pharmaceuticals’ balance sheet looks very strong.

  • Regeneron Pharmaceuticals’ Debt figure was $2.7 Bil at the end of the most recent quarter, while its market capitalization is $52 Bil (as of 5/30/2025). This implies a very strong Debt-to-Equity Ratio of 4.2% (vs. 19.9% for S&P 500). [Note: A low Debt-to-Equity Ratio is desirable]
  • Cash (including cash equivalents) makes up $8.3 Bil of the $38 Bil in Total Assets for Regeneron Pharmaceuticals.  This yields a strong Cash-to-Assets Ratio of 22.2% (vs. 13.8% for S&P 500)

How Resilient Is REGN Stock During A Downturn?

REGN stock has seen an impact that was slightly better than the benchmark S&P 500 index during some of the recent downturns. Worried about the impact of a market crash on REGN stock? Our dashboard –  How Low Can Regeneron Pharmaceuticals Stock Go In A Market Crash? – has a detailed analysis of how the stock performed during and after previous market crashes.

Inflation Shock (2022)

  • REGN stock fell 25.8% from a high of $738.84 on 8 April 2022 to $548.35 on 14 June 2022, vs. a peak-to-trough decline of 25.4% for the S&P 500
  • The stock fully recovered to its pre-Crisis peak by 4 October 2022
  • Since then, the stock has increased to a high of $1,201.76 on 27 August 2024 and currently trades at around $490

COVID-19 Pandemic (2020)

  • REGN stock fell 48.1% from a high of $526.53 on 22 June 2017 to $273.46 on 27 September 2019, vs. a peak-to-trough decline of 33.9% for the S&P 500
  • The stock fully recovered to its pre-Crisis peak by 16 April 2020

Global Financial Crisis (2008)

  • REGN stock fell 57.9% from a high of $28.60 on 2 May 2007 to $12.05 on 11 March 2009, vs. a peak-to-trough decline of 56.8% for the S&P 500
  • The stock fully recovered to its pre-Crisis peak by 3 February 2010

Putting All The Pieces Together: What It Means For REGN Stock

In summary, Regeneron Pharmaceuticals’ performance across the parameters detailed above are as follows:

  • Growth: Neutral
  • Profitability: Very Strong
  • Financial Stability: Extremely Strong
  • Downturn Resilience: Neutral
  • Overall: Strong

Regeneron has performed strongly across key financial metrics, and we believe this isn’t fully reflected in its current stock valuation, which makes it an attractive investment. This supports our conclusion that REGN is a good stock to buy. The recent clinical trial setback for itepekimab will likely delay its launch, as the drug will need to undergo further trials. However, Regeneron stands to benefit significantly from the robust growth of Dupixent, a drug developed in partnership with Sanofi. Dupixent’s sales climbed 19% to $3.7 billion last quarter, with peak annual sales potentially exceeding $20 billion. Furthermore, Regeneron boasts a promising pipeline with over a dozen programs currently in late-stage trials, indicating future growth potential.

While a setback in a clinical trial and declining Eylea sales naturally lead to a valuation multiple compression, we believe the selling pressure on REGN stock at levels under $500 is overdone. We think investors can leverage this current dip as a buying opportunity for solid long-term gains. However, before making any investment decisions, it’s crucial to consider the risks. Any adverse results from ongoing clinical trials, particularly concerning its COPD treatment, could drive the stock even lower. Additionally, in times of broader market downturns due to macroeconomic uncertainties, REGN stock could also fall. Although Regeneron has historically outperformed the broader market during some recent corrections, it’s still susceptible to sharp declines. Separately, see – Plug Power’s Hydrogen Hopes Dashed?

While REGN stock looks promising, investing in a single stock can be risky. On the other hand, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.

Invest with Trefis Market-Beating Portfolios

See all Trefis Price Estimates