Regeneron Pharmaceuticals Inc. ( REGN ) shares are trading higher on Wednesday, recovering after a drop on Tuesday that followed the release of weaker-than-expected first quarter 2025 financial results.

What To Know: Regeneron reported first quarter revenues of $3.03 billion, a 4% decrease year-over-year and a 20% drop in net product sales to $1.42 billion.

Despite the revenue decline, GAAP net income rose 12% to $809 million and diluted GAAP EPS increased 16% to $7.27. However, on a non-GAAP basis, net income and EPS declined 17% and 14%, respectively, underscoring pressure on profitability due to shifting product dynamics and increased costs.

The drop in total EYLEA U.S. sales — down 39% to $736 million — dragged revenue down as the drug faces ongoing competition and patient affordability challenges. Still, EYLEA HD posted a 54% increase in U.S. sales to $307 million, partially offsetting the decline.

Dupixent remains a growth driver with global net sales up 19% to $3.67 billion, although these sales are booked by Sanofi. Regeneron's share of profits from the Sanofi collaboration rose to $1.02 billion.

The company is navigating mixed regulatory outcomes. While the FDA accepted a priority review for EYLEA HD for retinal vein occlusion and monthly dosing, it also issued two Complete Response Letters — one for the pre-filled syringe format and another rejecting extended dosing intervals beyond 16 weeks. Separately, Dupixent gained U.S. approval for chronic spontaneous urticaria and Japanese approval for COPD, helping support longer-term growth expectations.

Regeneron also reported regulatory progress in oncology, including submissions for Libtayo in adjuvant CSCC and approvals for linvoseltamab (Lynozyfic) in the EU. Key pipeline advancements include progress in gene therapy for hearing loss, new Phase 2 trials in hypertension and sepsis, and a Phase 3 trial in nasal polyps.

Despite the revenue decline and FDA setbacks, the company reiterated its full-year financial guidance, maintaining R&D and SG&A spending estimates, while slightly lowering gross margin expectations. It also declared a quarterly dividend and continues share buybacks, with $3.874 billion in repurchase capacity remaining.

REGN Price Action: Regeneron shares were up 5.43% at $599.65 at the time of writing, according to Benzinga Pro.

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