Regeneron, a leading biotechnology firm, recently announced a remarkably strong second quarter for 2025, significantly outperforming market expectations in both earnings per share and revenue. This impressive financial display underscores the company’s resilience and strategic operational discipline amidst evolving market dynamics, signaling robust growth in its core therapeutic areas and collaborations.
The biotechnology giant posted Non-GAAP earnings per share of $12.89, representing an impressive 52.9% surge above the consensus estimate of $8.43, clearly showcasing its robust profitability. Furthermore, reported GAAP revenue climbed to $3.68 billion, comfortably exceeding the projected $3.29 billion, and marking a solid 3.6% increase year-over-year, despite persistent manufacturing and regulatory challenges, particularly within its critical retinal disease portfolio.
Regeneron’s fundamental strength lies in its extensive research and development endeavors and pivotal strategic partnerships, notably with Sanofi and Bayer. These collaborations are instrumental in sharing the financial burdens and risks associated with drug development, while simultaneously broadening access to crucial global markets. The company’s business model prioritizes innovation, aiming to accelerate the creation of novel treatments for conditions with significant unmet medical needs across immunology, ophthalmology, and oncology.
The second quarter’s financial results highlight exceptional operational leverage and a significant beat on key financial metrics. Non-GAAP earnings per share demonstrated an 11.5% increase year-over-year, while GAAP revenue grew 4%, primarily propelled by substantial growth in collaboration income and the strong performance of high-margin products. This sustained momentum demonstrates Regeneron’s capacity to drive revenue growth even as certain segments face headwinds.
A cornerstone of Regeneron’s collaborative success is Dupixent, an immunology biologic drug developed with Sanofi, which saw a remarkable 29.7% increase in collaboration revenue compared to Q2 2024. Regeneron’s share of Dupixent profits alone rose 30% to $1.28 billion, reflecting the drug’s expanding indications and growing global adoption. Additionally, Libtayo, an oncology immunotherapy, delivered robust global net product sales, surging 27%, further solidifying its market presence.
Despite the overall positive momentum, the EYLEA franchise, a flagship ophthalmology treatment, experienced a complex quarter. While EYLEA HD product sales in the U.S. increased by 29%, this was notably offset by a sharp decline in legacy EYLEA revenue. This reduction was primarily attributed to market share losses, patient affordability concerns, and shifts in insurance reimbursement trends, leading to a combined U.S. sales slide of 25% for the EYLEA HD + EYLEA franchise.
In the oncology segment, Regeneron achieved significant milestones, including the U.S. Food and Drug Administration (FDA) approval for Lynozyfic, a critical multiple myeloma treatment. Furthermore, strong clinical data continues to support expanded approvals for Libtayo in various skin cancer indications, underscoring the company’s ongoing commitment to advancing cancer therapies and expanding its oncology portfolio.
Financially, the period reflected prudent cash deployment and a very healthy liquidity position. The company repurchased $1.07 billion in shares, signaling confidence in its future outlook and a commitment to shareholder returns. Regeneron concluded the quarter with a substantial $17.5 billion in cash and marketable securities as of June 30, 2025, providing significant financial flexibility for future investments and strategic initiatives.
Looking ahead to fiscal 2025, management provided updated Non-GAAP guidance, indicating an increase in R&D expenses to $5.10–$5.20 billion and lower selling, general, and administrative cost expectations. The Non-GAAP gross margin target was set at 86%. While formal revenue or earnings-per-share guidance was not provided, management expressed strong confidence in the sustained growth of collaboration income, the continued expansion of Dupixent, and the consistent progress of its robust pipeline.
