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

We came across a bullish thesis on Regeneron Pharmaceuticals, Inc. on Notes From The Beauty Contest’s Substack by Crashkolnikov. In this article, we will summarize the bulls’ thesis on REGN. Regeneron Pharmaceuticals, Inc.'s share was trading at $759.18 as of February 3rd. REGN’s trailing and forward P/E were 18.30 and 17.24 respectively according to Yahoo Finance.

Regeneron Pharmaceuticals, Inc. discovers, invents, develops, manufactures, and commercializes medicines for treating various diseases worldwide. REGN represents a rare long-term investment opportunity in biopharma, combining a best-in-class antibody platform, a self-sustaining pipeline, and disciplined management. Despite shares trading over 40% below five-month highs, the company’s growth story remains compelling. Eylea, while still significant, is overemphasized by the market; Dupixent, Libtayo, and other assets illustrate the company’s diversified growth potential.

REGN’s founders, Len Schleifer and George Yancopoulos, built a culture and technology ecosystem designed for repeated innovation, combining deep scientific expertise with entrepreneurial discipline. Their VelociSuite platforms enable rapid, cost-effective discovery and development of fully human antibodies, giving REGN a material competitive edge, exemplified during the COVID-19 pandemic when they quickly produced potent antibody cocktails.

The Regeneron Genetics Center (RGC) further strengthens this moat, creating the world’s largest DNA-linked healthcare database and generating novel insights and targets for antibody-based therapeutics. REGN’s approach to R&D maximizes success probability while minimizing costly late-stage failures, resulting in high returns on invested capital. Institutional knowledge, low employee turnover, and a science-led culture amplify these advantages.

Financially, REGN delivers strong organic growth, high returns on equity, and significant cash reserves, with a 12x forward P/E representing a favorable entry point. The company’s IP generation is aggressive, its marketed products robust, and its pipeline expansive, with potential for transformative discoveries. With a management team demonstrating credibility, vision, and execution, REGN combines near-term cash flow from blockbusters with multi-decade optionality in its pipeline, offering a uniquely attractive risk/reward profile for investors willing to focus beyond short-term market fixation on Eylea.

Previously, we covered a bullish thesis on Eli Lilly and Company (LLY) by Kontra in May 2025, which highlighted its leadership in obesity and diabetes therapeutics, blockbuster GLP-1 drugs, and strong revenue growth. LLY’s stock has appreciated by approximately 26.36% since our coverage. Crashkolnikov shares a similar perspective but emphasizes Regeneron Pharmaceuticals’ (REGN) antibody platform and pipeline optionality.

Regeneron Pharmaceuticals, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 78 hedge fund portfolios held REGN at the end of the third quarter which was 73 in the previous quarter. While we acknowledge the risk and potential of REGN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than REGN and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.