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Are We Starting to See Cracks?

By Nathan Brinkman

We entered 2026 asking one question about Regeneron: can the pipeline hold? Q1 2026 offered some early but complicated clues. The company delivered a strong double beat (22% revenue growth, EPS of $9.47 vs. $8.97 consensus), Dupixent and Libtayo grew broadly, and the company notched a success with the FDA approval of Otarmeni, the world’s first gene therapy for genetic hearing loss, which Regeneron is offering to U.S. patients for free. On the concern side: EYLEA HD missed expectations (impacted by wholesaler inventory timing, not underlying demand), fianlimab in NSCLC was abandoned after Phase 2 failure, and a landmark Most-Favored-Nation pricing agreement with the U.S. government introduces long-term uncertainty on pricing power. The stock has fallen ~5% since earnings even as the underlying business printed its best quarterly revenue growth in years. The pipeline must hold while EYLEA transitions, but some cracks might be starting to show.