Finally Putting The LAG (Mostly) Behind Us

Research evidence excerpt

Finally Putting The LAG (Mostly) Behind Us

Pharmaceuticals (Major) & Large Cap Biotechnology

Biotechnology-Large Cap - Market Weight

REGENERON PHARMACEUTICALS, INC. (REGN) May 18, 2026

Finally Putting The LAG (Mostly) Behind Us Rating:

Outperform

The Wolfe Byte Price: $698.25

We take PoS down to 20% following the LAG-3 miss. Opdualag H2H trial may Price Target:

present FDA path forward, but we're less optimistic. Here, commercial execution $860

will be important for REGN, while 2H26 catalysts may be underappreciated. Prior: $900

% Upside:

Reiterate OP but lower PT to $860 ($900 prior). 23.2%

View REGN Model

Lack of early curve separation may have dampened the hazard ratio. Shares of View Comp Table

REGN are trading -10% following Friday evening's disclosure (our take here) that Company Information

Libtayo+fianlimab failed to demonstrate a stat sig PFS benefit over MRK's Keytruda. 52-Week Range $483 - $812

We caught up with the team this morning who seemed equally surprised as their Market Cap. (MM) $71,935

Enterprise Value (MM) $69,146

internal math pointed to an 11 mo. mPFS for the combo and 7 mo. mPFS for Keytruda Shares Out. (MM) 103.0

being enough for a stat sig benefit. However, it seemed to them that the lack of early Avg. Value Traded (MM) $548.79

curve separation may have had an outsized impact on what happened on the stats SI% of Float 3.2% FCF Yield 6.6%

for the median PFS. Dividend Yield 0.5%

A favorable OS trend, but it doesn't do much to shake our disappointment. Per Price Performance

REGN, a favorable trend was observed on overall survival, and the trial will continue YTD LTM

to run to the final OS analysis. However, we'd note that by design, we'd only see REGN (19)% 5% S&P 500 7% 24%

nominal significance.