Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) reported first-quarter results that exceeded expectations, supported by strong growth from its collaboration with Sanofi on Dupixent.
Adjusted earnings per share came in at $9.47, ahead of the analyst consensus of $8.97 by $0.50. Revenue reached $3.6 billion, up 19% year over year from $3.0 billion and above the $3.48 billion estimate. Shares rose 1.4% following the announcement.
Global net sales of Dupixent, recorded by Sanofi, climbed 33% to $4.9 billion, driving a 36% increase in collaboration revenue to $1.6 billion.
In contrast, combined U.S. net sales of EYLEA HD and EYLEA declined 10% to $941 million. EYLEA HD sales rose 52% to $468 million, while legacy EYLEA revenue dropped 36% to $473 million due to competitive pressures and ongoing patient transitions to the newer formulation.
“In the first quarter of this year, we were able to achieve strong double-digit growth on both the top and bottom line while continuing to invest significant resources in our portfolio of nearly 50 product candidates in clinical development,” said Leonard S. Schleifer.
The company’s GAAP gross margin on net product sales declined to 76%, down from 81% a year earlier, primarily due to unabsorbed manufacturing costs and higher inventory write-offs linked to a temporary production disruption at its Limerick, Ireland facility.
Production resumed in the second quarter, although Regeneron expects margin pressure to persist until operations return to normal levels by the end of the quarter.
The company lowered its full-year 2026 GAAP gross margin guidance to 77%–78%, compared with the previous range of 79%–80%, reflecting the impact of the disruption.
Regeneron repurchased $803 million of shares during the quarter and approved a new $3.0 billion share buyback program in April.