DUPIXENT and EYLEA HD Propel Regeneron to 19% Revenue Growth and Higher Profit Share Outlook (REGN Q1 2026 Earnings Call)
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Regeneron Pharmaceuticals delivered a highly impressive first quarter, highlighted by double-digit top- and bottom-line growth. The robust performance was anchored by the continued global dominance of DUPIXENT, rapid adoption of the high-dose EYLEA HD, and strong uptake of its oncology portfolio. Alongside a newly authorized $3 billion share repurchase program, Regeneron announced a major upcoming inflection point in its financials: the Sanofi development balance will be fully repaid in the second quarter, leading to a significant step-up in collaboration profit share beginning in Q3.
Blockbuster Franchises Drive Double-Digit Financial Growth
Regeneron reported first-quarter total revenues of $3.6 billion, representing a 19% year-over-year increase. Non-GAAP earnings per share grew 15% to $9.47, reflecting strong operational leverage while continuing to invest heavily in R&D.
The immunology juggernaut, DUPIXENT, generated $4.9 billion in global net sales, representing a 31% increase on a constant currency basis. The drug continues to add new indications, recently gaining approvals for chronic spontaneous urticaria in children and allergic fungal rhinosinusitis. In the ophthalmology space, combined U.S. net sales for EYLEA and EYLEA HD reached $942 million. While the legacy EYLEA saw a 36% decline as expected, EYLEA HD posted a staggering 52% year-over-year increase to $468 million. HD now accounts for half of the company's U.S. retina franchise net sales, with management anticipating continued 10% sequential demand growth in Q2. In oncology, Libtayo product sales jumped 54% to $438 million, aided by its recent approval in the adjuvant setting for cutaneous squamous cell carcinoma.
Sanofi Collaboration Milestone and Guidance Updates
A major highlight for investors is the status of the Sanofi collaboration. CFO Chris Fenimore confirmed that the Sanofi development balance will be fully repaid by the end of the second quarter. As a result, Regeneron will begin receiving its full share of collaboration profits starting in the third quarter, presenting a significant near-term tailwind to earnings.
Management also slightly revised its full-year GAAP gross margin guidance to 77%-78%, reflecting a temporary manufacturing interruption at its Limerick, Ireland facility. However, full production is expected to resume by the end of Q2, and the interruption has not impacted product availability.
Advancing a Next-Generation Pipeline: Rare Disease to Obesity
Regeneron's pipeline continues to produce groundbreaking results. Notably, the FDA recently approved Otarmeni, a gene therapy that restores sensory function for children born with genetic hearing loss. In a move reflecting the company's patient-first ethos, Regeneron will offer this therapy for free in the U.S.
Looking ahead, Regeneron is aggressively pursuing the highly lucrative obesity market. The company is advancing a unique combination therapy featuring its in-licensed GLP/GIP receptor agonist (olatorepatide) co-formulated with Praluent, its PCSK9 inhibitor. This combination aims to not only drive substantial weight loss but also lower bad cholesterol by over 50%, comprehensively addressing the cardiovascular risks associated with obesity.
Q&A Highlights: DUPIXENT Lifecycle and Bispecific Safety
During the Q&A, analysts probed management on the long-term lifecycle strategy for DUPIXENT. CEO Len Schleifer emphasized that while the exact patent expiration date is uncertain due to a deep moat of formulation and use patents, the company is actively developing next-generation long-acting IL-13 and IL-4 therapies to maintain its immunology leadership. Analysts also inquired about infection risks associated with bispecific antibodies like Lynozyfic in multiple myeloma. Chief Scientific Officer George Yancopoulos clarified that while the disease itself carries high infection risk, clinical data shows that as patients remain on Lynozyfic and achieve deep disease control, bone marrow function recovers and infection rates actually decline over time.