Release Date: July 30, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Total revenues increased 17% year-over-year, with non-GAAP EPS up 11%, marking the second consecutive quarter of double-digit growth.
- Dupixent global net sales reached $6 billion, up 38% year-over-year on a constant currency basis, driven by robust demand across all approved indications.
- EYLEA HD U.S. net sales hit nearly $600 million, up 52% year-over-year, with physician demand growing 24% sequentially and now exceeding EYLEA sales.
- Libtayo global net sales reached nearly $500 million, up 29% year-over-year, with strong adoption in non-small cell lung cancer and non-melanoma skin cancers.
- The company has a deep and diverse pipeline with approximately 50 active clinical programs, including promising next-generation assets like a long-acting IL-13 antibody and obesity portfolio advancing to Phase III.
Negative Points
- EYLEA U.S. net sales declined 45% year-over-year due to ongoing conversion to EYLEA HD and competitive dynamics, with expected further declines from biosimilar launches.
- The EYLEA HD prefilled syringe approval remains delayed, with the timeline pushed to potentially by the end of 2026, impacting a key product enhancement.
- GAAP gross margin was negatively impacted by unabsorbed manufacturing costs from a temporary production interruption at the Limerick, Ireland facility.
- Linazipic growth remains modest in the late-line treatment setting, limiting near-term commercial contribution despite a strong clinical profile.
- The company faces ongoing competitive pressures in ophthalmology and oncology, with the need to navigate FDA leadership changes and regulatory uncertainties.
Q & A Highlights
Q: Given the strong cash position and the Sanofi obligation rolling off, can you square the dynamic of your large cash balance with your past aversion to M&A as a primary use of cash?
A: (Leonard Schleifer, CEO) I don't think I expressed an aversion to M&A, but an aversion to overpaying. We are disciplined in trying to create value with transactions. We look at all external opportunities, small and large, but we want them to make sense and make money for our shareholders over the long-term.
Q: Given recent updates in the I&I space, can you talk about your latest thoughts on expanding the Sanofi collaboration to include additional assets and steps to accelerate their development?
A: (Leonard Schleifer, CEO) We have had productive early discussions with Sanofi's new CEO. We are looking to capture the joint learned capabilities from the Dupixent success. We need to make adjustments to the relationship to reflect where both companies are now, and I am cautiously optimistic we can reach an agreement. (George Yancopoulos, CSO) We know this field better than anyone and will be just as innovative going forward.
Q: Can you provide additional details on the ongoing EYLEA HD prefilled syringe review and the involvement of multiple contract manufacturers?
A: (Leonard Schleifer, CEO) We are leaving no stone unturned with multiple (more than two) contract manufacturers in the mix. We have had good recent conversations and know the path forward. We could see approval by the end of the year or sooner.
Q: From market research in Myasthenia Gravis, what percent of the market is served by IV C5 therapies, and do you expect a robust switch market for Semdisiran?
A: (Marion McCourt, EVP Commercial) We look forward to the potential approval. Our clinical profile, safety, and convenient dosing will be very meaningful. We are preparing for the launch and have attracted amazing talent. (Leonard Schleifer, CEO) The switch population is lower-hanging fruit, but our data on convenience and continuous effect can compete in all segments.
Q: You will be presenting data from an siRNA program in MASH. Could you speak to the expected differentiation versus approved agents like Rezdiffra and the commercial opportunity?
A: (George Yancopoulos, CSO) Other agents work indirectly by decreasing food intake. Our approach, based on genetics from the Regeneron Genetics Center, directly addresses the mechanism of the disease. We believe this could reverse the disease more quickly and deeply than indirect approaches.
Q: For the C5 combination in PNH, what incremental data points beyond LDH control and transfusion avoidance are needed to support a best-in-class label claim?
A: (George Yancopoulos, CSO) We believe improved control of intravascular hemolysis is the most relevant and validated endpoint as it directly reflects the C5 mechanism and is related to preventing devastating consequences like thrombosis. This would demonstrate differentiation and superiority.
Q: How are you thinking about the launch trajectory for Semdisiran in GMG, and what do you think doctors will respond to as a differentiating factor versus the market leader?
A: (Marion McCourt, EVP Commercial) The key differentiating characteristics are efficacy, safety, and convenience of dosing. (Leonard Schleifer, CEO) It's better to have steady improvement without cycling on and off. The unpredictable nature of other treatments compared to a simple quarterly injection will change practice. (George Yancopoulos, CSO) A significant proportion of FcRn-treated patients lose efficacy over time. We have best-in-class efficacy with consistent results and without complete complement inhibition, which is stunning.
Q: As you think about the next phase of the Sanofi partnership, what key elements do you want to preserve and where do you see opportunities to improve the structure?
A: (Leonard Schleifer, CEO) We want to capture the joint learned capabilities from developing and commercializing Dupixent. When we first partnered, we were a different company, so we need to be open-minded to have a relationship that reflects where both companies are now. (George Yancopoulos, CSO) The companies have complementary and overlapping strengths, and the proposed deal will take advantage of both.
Q: Given the maturing obesity landscape, what is the realistic timeline for the GLP-1/GIP plus Praluent combination, and how should we think about its differentiation?
A: (George Yancopoulos, CSO) We are initiating Phase 3 for the GLP-1/GIP over the next few months. Our differentiation is providing a fundamentally different profile, like a GLP-1 that also lowers bad cholesterol by 50-60% and reduces cardiovascular risk. We are also addressing muscle loss, a negative aspect of GLP-1-induced weight loss.
Q: Given setbacks in oncology, can you reassess your solid tumor portfolio and if it still warrants the same spend and attention?
A: (George Yancopoulos, CSO) Cancer is a challenge, and we celebrate incremental advances. We have many programs in solid and liquid tumors and continue to be excited about them. We will continue to take many shots with our unique and first-in-class agents against this tough disease.
Q: What is your bigger-picture strategy in ophthalmology beyond VEGF, and should we expect significant R&D investments in complement, glaucoma, and other areas?
A: (George Yancopoulos, CSO) We have a huge investment belief in our ophthalmology portfolio. We want to deliver the "Eylea for glaucoma" and "Eylea for thyroid eye disease." In geographic atrophy, the field needs safer, longer-acting agents that can address comorbid diseases. We are not just focusing on one thing, which is why we have one of the deepest and most exciting pipelines.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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