Should Regeneron’s Clarified Eylea Biosimilar Timeline Reshape How REGN Investors View Its Core Franchise?

• Alvotech and Teva Pharmaceuticals recently announced a settlement and license agreement with Regeneron over AVT06, a proposed biosimilar to Eylea, setting a licensed U.S. entry date in the fourth quarter of 2026 or earlier under certain conditions.
• This deal reduces legal uncertainty around Eylea’s U.S. exclusivity and provides clearer timing for when biosimilar competition may start to affect Regeneron’s franchise.
• We’ll now examine how clearer timing for U.S. Eylea biosimilar entry could reshape Regeneron’s investment narrative and risk profile.

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Regeneron Pharmaceuticals Investment Narrative Recap

To own Regeneron, you really need to believe the company can gradually offset pressure on its Eylea eye franchise with newer therapies and disciplined capital allocation. The Alvotech and Teva settlement largely confirms what the market already anticipated about U.S. Eylea biosimilar timing, so it mainly reduces legal overhang rather than creating a new short term catalyst or changing the core risk that Eylea faces mounting pricing and volume pressure.

In that context, the recent early data for Lynozyfic in newly diagnosed multiple myeloma matter because they highlight one way Regeneron is trying to diversify beyond Eylea. If later stage results and approvals follow, oncology assets like Lynozyfic could become more important to the story just as biosimilars such as AVT06 prepare to enter the U.S. retinal market.

Yet while this legal clarity is helpful, investors still need to think carefully about how concentrated Regeneron remains in a few blockbuster drugs and what happens if...

Read the full narrative on Regeneron Pharmaceuticals (it's free!)

Regeneron Pharmaceuticals' narrative projects $16.6 billion revenue and $5.0 billion earnings by 2028. This requires 5.4% yearly revenue growth and about a $0.5 billion earnings increase from $4.5 billion today.

Uncover how Regeneron Pharmaceuticals' forecasts yield a $781.13 fair value, in line with its current price.

Exploring Other Perspectives

Some of the most optimistic analysts were previously penciling in about US$17.8 billion of revenue and US$6.2 billion of earnings by 2028, which contrasts with the more cautious focus on Eylea erosion and raises the question of whether this new biosimilar deal will push those bullish expectations higher, or force a rethink of how resilient Regeneron really is.

Explore 11 other fair value estimates on Regeneron Pharmaceuticals - why the stock might be worth over 2x more than the current price!

Build Your Own Regeneron Pharmaceuticals Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Regeneron Pharmaceuticals research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Regeneron Pharmaceuticals research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Regeneron Pharmaceuticals' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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