2Q26 Preview - Capital Deployment Will Be Key

Research evidence excerpt

2Q26 Preview - Capital Deployment Will Be Key

Pharmaceuticals (Major) & Large Cap Biotechnology

Biotechnology-Large Cap - Market Weight

2Q26 Preview - Capital Deployment Will Be Key July 22, 2026

Regeneron Pharmaceuticals (REGN)

The Wolfe Byte

We touched base with REGN around quarter-end, with our key takeaways that Eylea SD+HD headwinds remain &

it's unclear when we can expect approval for Eylea HD's PFS. And, post the LAG-3 failure, we'd like REGN to focus

on capital deployment. Reiterate Outperform and $860 PT.

Eylea franchise still in focus. While mgmt. continues to tout 10% demand growth for Eylea HD, as compared to double-

digit declines for Eylea SD, we'd remind investors of the $20M in standard dose inventory stocking that is expected to

carry over into 2Q26, in addition to the low- to mid-single digit pricing declines for the entire franchise. Looking forward,

we are hopeful for an imminent FDA approval on the Eylea HD prefilled syringe (PFS), which we anticipate will drive

adoption, however, per the company, it's still unclear when we could expect a decision.

REGN 2Q26 Variance Table

REGN 2Q26E Change 2026E Change

$ in millions Wolfe Consensus Delta q/q y/y Wolfe Consensus Delta

Eylea SD $370 $381 ($11) (22%) (51%) $1,374 $1,432 ($58)

Eylea HD $543 $525 $17 16% 38% $2,210 $2,210 $0

Libtayo $452 $447 $5 3% 20% $1,820 $1,838 ($18)

Net product sales $1,535 $1,503 $32 0% (6%) $6,112 $6,112 ($0)

Sanofi collaboration $1,849 $1,795 $54 15% 28% $8,000 $7,724 $275

Revenue $3,901 $3,772 $129 8% 6% $16,186 $15,762 $424

2Q26E Change 2026E Change

$ in millions¹ Wolfe Consensus Delta q/q y/y Wolfe Consensus Delta

COGS $246 $242 $4 18% 11% $981 $972 $9

COCM $236 $226 $11 (16%) (7%) $1,005 $938 $67

Gross Profit $3,656 $3,531 $125 8% 6% $15,205 $14,790 $415