Regeneron Pharmaceuticals (REGN) reported Q4 2024 revenues of $3.8 billion, aligning with expectations, and non-GAAP EPS of $12.07, surpassing consensus estimates. The stock saw a positive reaction, rising 4.5%, largely due to the announcement of a new quarterly dividend of $0.88 per share. Despite this, Citi maintains a "Neutral" rating with a $750 price target, citing ongoing concerns about Eylea's erosion, which saw a 13% y/y decline, amid competition from high-dose alternatives and Amgen's Pavblu.
The report highlights the robust growth of Dupixent and Libtayo, with y/y increases of 20% and 24%, respectively, as potential offsets to Eylea's challenges. Citi notes, "While Regeneron consistently talks up the pipeline, we note that 2025 has quite a few events...which will keep investors engaged." Key upcoming catalysts include pivotal data for itepekimab in COPD and phase 3 results for fianlimab + Libtayo in melanoma.
Citi's model update reflects 2025 and 2026 revenue projections of $14.7 billion and $15.4 billion, with EPS estimates of $42.92 and $45.84, respectively. The valuation is based on a DCF model with a WACC of 8.5% and a 0% terminal growth rate. Regeneron was trading at $697.10 as of February 4.