Regeneron Pharmaceuticals (REGN) Morgan Stanley 24th Annual Global Healthcare Conference summary

Dupixent growth and market dynamics

• Dupixent is a major growth driver, with strong performance across nine indications and significant headroom in atopic dermatitis, which currently has only about 20% market penetration in the U.S.

• High adherence rates are driven by efficacy across multiple comorbidities, and the product is self-administered for a wide age range, enhancing its appeal.

• Competition is respected but has helped expand the market, with atopic dermatitis now accounting for about half of Dupixent net sales.

• Other indications such as asthma, COPD, CSU, eosinophilic esophagitis, and bullous pemphigoid are also key growth drivers.

• The collaboration with Sanofi is ongoing, with both parties working toward a new agreement to leverage the value created.

Pipeline and immunology strategy

• Four new antibodies are in development to sustain leadership in immunology and inflammation, targeting IL-13, IL-4, and bispecifics, with clinical entries expected through 2027.

• A new antibody targeting genetically linked diseases is in early trials, with phase II studies planned for 2027.

• No immediate plans to expand into IBD unless scientific developments warrant it.

Business development and capital allocation

• Business development is not limited to platform or early-stage deals; later-stage assets are considered if they align with scientific and commercial priorities.

• Capital allocation prioritizes internal R&D, selective external opportunities, and disciplined shareholder returns through dividends and share buybacks.

• Dividend growth is not a major focus, while share buybacks remain opportunistic and valuation-sensitive.