What Could Send Regeneron Stock Higher

Regeneron Pharmaceuticals (REGN) may get its next boost from an old deal rather than a new drug. Through the first half of 2026, Regeneron was paying down a balance owed to its partner Sanofi. This obligation reduced the revenue Regeneron reported from the partnership. So what does Regeneron gain now that the balance is paid off?

Regeneron Now Records Its Full Share Of Collaboration Profits

Since the start of the third quarter of 2026, Regeneron has been recording its full share of profits from the Sanofi collaboration. The company stated during its second-quarter 2026 earnings call that it expects Sanofi collaboration revenue to step up as a result. That step-up remains a forecast, not yet a realized result.

Sanofi collaboration revenue already reached an all-time high of $2.2 billion in the second quarter of 2026, even with the repayment still underway. During the same call, Regeneron detailed Dupixent's sales as Sanofi reports them, hitting $6 billion worldwide for the quarter. That figure marks a 38% increase from a year earlier at constant currency. Demand across all of Dupixent's approved uses accounted for most of the growth.

How Big Is The Sanofi Step-Up For Regeneron?

The repayment cost Regeneron about $930 million in reported Sanofi collaboration revenue in 2025, followed by roughly $530 million in the first half of 2026. Overall collaboration revenue formed Regeneron's largest reported line item in 2025, making up 51% of total revenue. If the anticipated step-up roughly matches the amount lost to repayment in 2025, it would add about 6.5% to Regeneron's fiscal 2025 revenue of $14.3 billion. An increase of that size is a meaningful addition, though it hardly transforms a company of this scale.

Regeneron stock has returned 34% over the past twelve months, compared with 21% for the S&P 500. Yet the shares have stood still for half a year, losing 0.1% while the index gained 12.6%. The stock currently trades 11.6% below its 52-week high. Priced at 17.9 times earnings, against 22.5 for the S&P 500, the price appears to factor in little beyond the business Regeneron already reports.

Regeneron Sees Dupixent Growth Moderating As Sanofi Talks Continue

During the second-quarter call, the company indicated that Dupixent's global sales growth should stay strong in the second half of 2026, although it should moderate from the first half. A favorable gross-to-net adjustment also lifted U.S. Dupixent sales in the second quarter. This specific lift means some of that quarter's strength may not repeat in future periods.

The terms of the underlying partnership may also change. Regeneron has held productive early talks with Sanofi to explore potential opportunities for further collaboration. These discussions involve several of Regeneron's Dupixent follow-on programs. When pressed on what elements it wants to preserve from the original deal, leadership provided only general answers and cited the ongoing negotiations.

Sanofi collaboration revenue in Regeneron's third-quarter 2026 report is the number to watch, marking the first quarter recorded at a full share.

Does This Mean You Should Act On REGN?

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