Regeneron Pharmaceuticals: A Golden Opportunity Hidden in Plain Sight

The market's relentless focus on Regeneron Pharmaceuticals' (NASDAQ: REGN) Eylea decline has created a rare mispricing opportunity. While investors fixate on the $2.5 billion sales drop for Eylea by 2027, they're overlooking a portfolio of high-growth assets—Dupixent, oncology therapies, and gene therapies—that could push Regeneron's valuation far beyond its current $63.52 billion market cap. Here's why this is a buy now moment.

The Eylea Distraction: Market Myopia at Its Worst

Eylea's U.S. sales fell 26% YoY in Q1 2025 to $1.04 billion, driven by competition and off-label Avastin use. But fixating on this decline ignores two critical facts:
1. Eylea's global sales remain resilient: Despite U.S. headwinds, Dupixent's sales surged 19% globally to $3.67 billion, proving its dominance in atopic dermatitis, asthma, and COPD.
2. Regeneron's pipeline is firing on all cylinders: With 45 clinical candidates, including four 2025 regulatory approvals and nine submissions, the company is primed to diversify its revenue streams.

RBC's $843/share DCF: A Blueprint for Undervaluation

RBC Capital Markets' discounted cash flow (DCF) analysis reveals a stark disconnect between Regeneron's stock price and its intrinsic value. Using an 8.5% WACC discount rate and a 4% terminal growth rate, RBC calculates a $1,352/share DCF value—55% above the current price of $603.64. Even their hypothetical Eylea divestiture scenario (selling rights to Bayer) yields a $843/share valuation, implying 43% upside, as Eylea's drag is stripped away.

Why the Market Misses the Bigger Picture

1. Dupixent's Unstoppable Momentum:
2. Dupixent's global sales are on track to hit $18 billion by 2027, fueled by approvals for chronic spontaneous urticaria (CSU) in the U.S. and COPD in Japan.

3. R&D efficiency: Regeneron's $5.56–5.795 billion R&D budget is optimized for high-impact programs, not legacy drugs.

4. Oncology Pipeline Breakthroughs:

5. Libtayo (cancer immunotherapy) secured an FDA approval for head and neck cancer in 2024, with a $1.5 billion sales forecast by 2026.

6. Linvoseltamab (multiple myeloma): Phase 3 data showed a 92% overall response rate, positioning it for a 2025 FDA submission.

7. 23andMe Acquisition: The Future of Precision Medicine:

8. The $620 million acquisition of 23andMe gives Regeneron access to 30 million genetic profiles, accelerating drug discovery for rare diseases.

The Catalysts Igniting a Revaluation

• 2025 Regulatory Milestones:
• FDA approval decision for EYLEA HD (high-dose Eylea) by Q4 2025.
• Data readouts for REGENEBIO (Alzheimer's gene therapy) and velunsurtoclax (AML treatment).
• Balance Sheet Strength:
• $17.6 billion in cash and a current ratio of 4.93x provide a fortress-like liquidity position.

Risks? Yes. But Manageable

• Eylea competition: Off-label Avastin use and biosimilars will pressure U.S. sales, but global markets (e.g., Asia-Pacific) offer growth.
• Pipeline execution: Regulatory delays (e.g., FDA's CRL for EYLEA HD) pose near-term risks, but the pipeline's depth mitigates this.

Conclusion: A 55% Upside Awaits

The market's narrow focus on Eylea's decline has masked Regeneron's $1,352/share DCF value and $843/share post-Eylea scenario. With Dupixent's dominance, oncology breakthroughs, and 23andMe's data treasure trove, Regeneron is primed for a valuation renaissance.

Action Item: Buy REGN now at $603.64. The catalysts of 2025—FDA approvals, pipeline data, and a re-rated multiple—could deliver 50–70% returns over the next 18 months. This is a rare chance to profit from a $75 billion undervaluation.

The writing is on the wall: Regeneron's future is brighter than its Eylea past. Don't let myopia cost you this opportunity.