Regeneron Tops Its Buy Zone Despite Mixed Eye-Drug Sales

Regeneron stock edged higher Thursday despite mixed results for its bread-and-butter eye-disease treatment franchise, Eylea.

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Regeneron Pharmaceuticals (REGN) launched a high-dose version of Eylea last August. Eylea HD requires fewer injections for patients. It also extends the patent thicket around the company’s biggest moneymaker.

But in the second quarter, Eylea HD generated $304 million in sales, missing analysts’ projections for $320 million, RBC Capital Markets analyst Brian Abrahams said. He estimated a lower $279 million. Total U.S. Eylea sales came in at $1.23 billion, down 18% vs. the year-earlier period. Analysts called for a lower $1.15 billion. Bayer (BAYRY) books Eylea sales abroad.

This suggests “that the market conversion to Eylea HD has been strong — a positive given our (key opinion leader) feedback that the overall market should transition to longer-acting (drugs in this class) over time,” he said in a report.

Regeneron stock rose 1.7% to 1,093 in midmorning trades. Shares broke out of a cup-with-handle base with a buy point at 997.87 in early June, MarketSurge shows. The stock is now extended beyond that buy point’s buy zone.

Regeneron Stock: Strong Dupixent Sales

Overall, Regeneron sales climbed 12% to $3.55 billion, beating forecasts for $3.38 billion. On an adjusted basis, earnings advanced almost 13% to $11.56 per share, topping analysts’ $10.62 view.

Notably, revenue from Dupixent — which treats allergic conditions like asthma and eczema — brought in $3.56 billion in sales. Partner Sanofi (SNY) records Dupixent sales and Regeneron takes a cut of the profits. That led to strong Sanofi collaboration revenue of $1.15 billion, up 21%.

U.S. sales of Praluent, which Regeneron books as revenue, surged 37% to $56 million. That beat views for $47 million, Piper Sandler analyst Christopher Raymond said in a report. He maintained his overweight rating on Regeneron stock.

Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.

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