Regeneron Pharmaceuticals, Inc. (REGN): A Bull Case Theory

We came across a bullish thesis on Regeneron Pharmaceuticals, Inc. on Options Coach’s Substack by Taylor Selden. In this article, we will summarize the bulls’ thesis on REGN. Regeneron Pharmaceuticals, Inc.'s share was trading at $547.93 as of July 16^th. REGN’s trailing and forward P/E were 13.93 and 15.29 respectively according to Yahoo Finance.

Regeneron (REGN) presents a compelling asymmetric opportunity as its valuation (~12–13× forward earnings) fails to reflect the durability of its flagship drug Dupixent or the potential embedded in its pipeline. While the bear case—centered on an early and sharp Eylea patent cliff, pipeline delays, and rising competition—has largely played out, the damage now appears priced in. Standard-dose Eylea sales fell 39% YoY in Q1 2025, and while high-dose uptake is slower than hoped, investors anticipated this erosion.

Meanwhile, Dupixent’s surprise approval for COPD in 2024, a major bullish catalyst, validated its growth trajectory with projected $3.5B in annual COPD sales. Competitive threats in eczema, like Ebglyss, have so far been minor, and Dupixent still grows ~20% YoY. Pipeline setbacks, such as odronextamab’s FDA delay, dented the bispecifics franchise but didn’t collapse it. Programs like fianlimab (LAG-3) and the RNAi-antibody combo for PNH remain viable shots on goal, with Phase 3 readouts due by late 2025 or 2026.

Though these assets are not fully derisked, early data is encouraging and a commercial opportunity exists, especially with minimal competition. Despite current revenue contraction, growth may reaccelerate in 2026 as Dupixent scales and pipeline assets mature. With gross margins over 80% and lean operations, REGN is structurally primed to convert revenue into earnings.

A re-rating to 15–18× earnings is plausible if execution follows. For value-conscious investors or put sellers, the current setup—defined downside, visible upside, and near-term catalysts—offers an attractive risk/reward skew. It’s not a momentum play, but a durable, underpriced innovator positioned for its next leg of growth.

Previously we covered a bullish thesis on Sarepta Therapeutics, Inc. (SRPT) by Magnus Ofstad in January 2025, which highlighted the company’s leadership in Duchenne muscular dystrophy and its strong M&A appeal. The company’s stock price has depreciated approximately by 84.4% since our coverage. This is because the expected acquisition interest and revenue acceleration didn’t materialize. Taylor Selden shares a similar outlook on Regeneron but emphasizes valuation-driven upside with clearer near-term catalysts.

Regeneron Pharmaceuticals, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 66 hedge fund portfolios held REGN at the end of the first quarter which was 68 in the previous quarter. While we acknowledge the potential of REGN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None.