Regeneron Pharmaceuticals (REGN) Goldman Sachs 45th Annual Global Healthcare Conference summary

Capital allocation and financial strategy

• Capital allocation focuses on internal R&D, manufacturing investments, and targeted business development, including M&A and partnerships.

• Over $12 billion has been spent on share buybacks, with a new $3 billion program authorized in April.

• The Sanofi development balance, currently $2.2 billion, is expected to be fully repaid by end of 2026, unlocking $600–$800 million in additional annual profitability.

• Cash reserves of $17.5 billion provide flexibility for future M&A, though no large deals or dividends are imminent.

• Dividend issuance is periodically reviewed but not planned for 2024; future cash flow inflection may prompt reconsideration.

Product updates and market trends

• EYLEA HD received a permanent J code in April, improving reimbursement and expanding prescriber adoption.

• Most EYLEA HD patients are switches from EYLEA, with 20% from faricimab; a DTC campaign has driven further uptake.

• Over 80% of lives are now covered for EYLEA HD, with expectations it will become the new standard of care.

• Legal actions are ongoing to protect EYLEA’s IP, with injunctions sought against biosimilar entrants until patent expiry in June 2027.

Pipeline and R&D highlights

• Upcoming milestones include the PDUFA date for linvoseltamab in August, Libtayo adjuvant CSCC data, and fianlimab phase II data by year-end.

• Obesity program phase II trials are underway, focusing on muscle preservation and metabolic rate maintenance; initial data expected in 2025.

• Early allergy program data and chronic spontaneous urticaria study results are anticipated by late 2024 and 2025.

• Oncology portfolio advances include promising data for fianlimab and linvoseltamab, with phase III melanoma data expected in 2025.

• Bispecifics platform leverages predictive preclinical models to prioritize targets, with a differentiated VelociSuite mouse program guiding development.