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 $750.11 as of December 1st. REGN’s trailing and forward P/E were 18.70 and 18.52 respectively according to Yahoo Finance.

Regeneron Pharmaceuticals (REGN) reported its third-quarter earnings, again outperforming expectations amid a backdrop of analyst underestimation. The company’s long-standing practice of not issuing quarterly guidance often results in overly conservative forecasts, and for the second consecutive quarter, sell-side estimates proved too low. This pattern likely extends to 2026 projections, which could be materially understated.

A key differentiator for Regeneron remains its exceptional clinical success rate—over three times the industry average—underscoring the company’s ability to efficiently translate R&D investment into viable therapies. Management confirmed plans to invest roughly $6 billion in R&D next year to advance its late-stage pipeline. By comparison, peers would need to spend twice as much to achieve similar productivity, a testament to Regeneron’s operational and scientific efficiency. Larger pharmaceutical companies with such capabilities typically carry market capitalizations two to three times higher than Regeneron’s current valuation.

While the company may not yet trade in that range, its trajectory suggests that continued clinical progress and eventual commercialization of its robust late-stage pipeline could drive a meaningful revaluation over time. As these programs begin converting into revenue streams and earnings visibility improves, analysts’ models will likely reflect the magnitude of this long-term potential. Overall, the quarter reinforced Regeneron’s reputation for consistent execution, disciplined capital allocation, and deep scientific strength—attributes that continue to make it one of the most underestimated yet strategically positioned players in large-cap biotech.

Previously we covered a bullish thesis on Sarepta Therapeutics, Inc. (SRPT) by Magnus Ofstad in January 2025, which highlighted its leadership in Duchenne muscular dystrophy and acquisition potential. The company’s stock price has depreciated approximately by 83.28% since our coverage as M&A catalysts failed to play out. The thesis still stands given SRPT’s rare disease focus. Crashkolnikov shares a similar view but emphasizes Regeneron’s superior R&D productivity.

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Disclosure: None.