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REGN, Regeneron Pharmaceuticals Inc.

Regeneron is a biotechnology company that discovers, makes, and sells prescription medicines for serious illnesses — among them eye disease, inflammatory and allergic disease, cancer, and heart disease. It earns money two ways: selling its own drugs to a small set of large buyers, and sharing the profit on drugs marketed alongside partners, which is why a large slice of revenue arrives as collaboration income rather than direct product sales. A handful of branded medicines carry most of the weight.

Our products and product candidates in development are designed to help patients with eye diseases, allergic and inflammatory diseases, cancer, cardiovascular and metabolic diseases, neurological diseases, hematologic conditions, infectious diseases, and rare diseases.

Our core business strategy is to maintain a strong foundation in scientific research and drug development using our proprietary technologies, and to build on that foundation with our clinical development, manufacturing, and commercial capabilities.

Latest annual: FY2025 10-K

REGN · Regeneron Pharmaceuticals Inc.

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$14.3B

+1.0% YoY · 11% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $14.9B 5-yr avg $14.0B

Operating margin 24.3% 5-yr avg 35.7%

ROIC 10% 5-yr avg 20%

Owner-earnings margin 30% 5-yr avg 34%

Free cash flow margin 28% 5-yr avg 32%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What it is: Revenue is Collaboration revenue (51%), Products (44%) and Other revenue (5%).
What moves the needle: The question is whether the science buys a durable franchise or only a temporary one: a drug sells well until a patent lapses or a better rival arrives, so watch how long the patents and clinical advantage hold the key products and how concentrated the sales remain in a few names and a few buyers. Because the firm leans on collaboration partners for a meaningful share of profit, the split of economics and control in those deals matters as much as the chemistry. The reinvestment test is plain — research spending must keep refilling the pipeline before the established earners fade, and the bad case is a cliff that arrives before the replacement does. The record below carries the margins, the returns, and the balance-sheet figures.
Is it a good business?: Return on capital has run high across the record (median 21%, above 15% in 8 of 10 years). Owner earnings agree: roughly 31% of revenue reaches owners as cash, consistently. Whether these returns reflect real pricing power or an accounting artifact is the judgment the 10-K is for.

Drafted from the company's filings and reviewed by hand; every number is shown in full in the sections below.

Where the money comes from

read the 10-K →

Revenue spreads across 4 lines, the largest Collaboration revenue at 51%.

Revenue by product line, FY2025

Collaboration revenue51%$7.3B
Products44%$6.3B
Other revenue5%$703M
Other products0%$10M

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2016–2025

realized figures from each filing · older years to the left

2016’16	2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
											Income statement
$4.9B	$5.9B	$5.1B	$6.6B	$8.5B	$16.1B	$12.2B	$13.1B	$14.2B	$14.3B	$14.9B	RevenueRevenue
24%	22%	22%	20%	16%	11%	17%	20%	21%	19%	18%	SG&A / revenueSG&A/rev
42%	35%	29%	37%	31%	18%	30%	34%	36%	41%	41%	R&D / revenueR&D/rev
$1.3B	$2.1B	$2.5B	$2.2B	$3.6B	$8.9B	$4.7B	$4.0B	$4.0B	$3.6B	$3.6B	Operating incomeOp. inc.
27.4%	35.4%	49.3%	33.7%	42.1%	55.7%	38.9%	30.9%	28.1%	24.9%	24.3%	Operating marginOp. mgn
$896M	$1.2B	$2.4B	$2.1B	$3.5B	$8.1B	$4.3B	$4.0B	$4.4B	$4.5B	$4.4B	Net incomeNet inc.
33%	42%	4%	13%	8%	13%	11%	6%	8%	14%	14%	Effective tax rateTax rate
											Cash flow & returns
$1.5B	$1.3B	$2.2B	$2.4B	$2.6B	$7.1B	$5.0B	$4.6B	$4.4B	$5.0B	$5.0B	Operating cash flowOp. cash
$105M	$146M	$148M	$210M	$236M	$286M	$341M	$421M	$483M	$544M	$540M	DepreciationDeprec.
($74M)	($544M)	($825M)	($360M)	($1.6B)	($1.9B)	($390M)	($666M)	($1.5B)	($1.1B)	($946M)	Working capital & otherWC & other
$512M	$273M	$383M	$430M	$615M	$552M	$590M	$719M	$756M	$898M	$900M	CapexCapex
10.5%	4.6%	7.4%	6.6%	7.2%	3.4%	4.8%	5.5%	5.3%	6.3%	6.0%	Capex / revenueCapex/rev
$1.4B	$1.2B	$2.0B	$2.2B	$2.4B	$6.8B	$4.7B	$4.2B	$3.9B	$4.4B	$4.5B	Owner earningsOwner earn.
28.4%	19.8%	39.8%	33.8%	28.0%	42.3%	38.4%	31.8%	27.7%	30.9%	30.0%	Owner earnings marginOE mgn
$974M	$1.0B	$1.8B	$2.0B	$2.0B	$6.5B	$4.4B	$3.9B	$3.7B	$4.1B	$4.1B	Free cash flowFCF
20.0%	17.6%	35.2%	30.5%	23.6%	40.6%	36.3%	29.5%	25.8%	28.4%	27.6%	Free cash flow marginFCF mgn
—	—	—	—	—	$0	$230M	$55M	$17M	$3M	$3M	AcquisitionsAcquis.
—	—	—	—	—	—	—	$0	$0	$370M	$374M	Dividends paidDiv. paid
$0	$0	$4M	$276M	$5.8B	$1.6B	$2.1B	$2.2B	$2.6B	$3.4B	—	BuybacksBuybacks
23%	22%	33%	20%	31%	43%	20%	15%	13%	10%	10%	ROICROIC
20%	20%	28%	19%	32%	43%	19%	15%	15%	14%	14%	Return on equityROE
—	—	—	—	—	—	—	15%	15%	13%	13%	Retained to equityRetained/eq
											Balance sheet
$1.9B	$2.9B	$4.6B	$6.5B	$6.7B	$12.5B	$14.3B	$16.2B	$17.9B	$18.9B	$18.5B	Cash & investmentsCash+inv
$1.3B	$1.5B	$1.7B	$2.1B	$4.1B	$6.0B	$5.3B	$5.7B	$6.2B	$5.7B	$5.7B	ReceivablesReceiv.
$399M	$726M	$1.2B	$1.4B	$1.9B	$2.0B	$2.4B	$2.6B	$3.1B	$3.2B	$3.1B	InventoryInvent.
$135M	$178M	$218M	$418M	$476M	$564M	$589M	$607M	$790M	$939M	$1.0B	Accounts payablePayables
$1.6B	$2.1B	$2.7B	$3.1B	$5.6B	$7.4B	$7.1B	$7.6B	$8.5B	$8.0B	$7.8B	Operating working capitalOper. WC
$3.2B	$4.3B	$6.4B	$7.7B	$9.8B	$14.0B	$15.9B	$19.5B	$18.7B	$18.0B	$18.2B	Current assetsCur. assets
$1.2B	$1.1B	$1.4B	$2.1B	$2.7B	$3.9B	$3.1B	$3.4B	$3.9B	$4.4B	$5.1B	Current liabilitiesCur. liab.
2.6×	3.8×	4.5×	3.7×	3.6×	3.6×	5.1×	5.7×	4.7×	4.1×	3.6×	Current ratioCurr. ratio
$7.0B	$8.8B	$11.7B	$14.8B	$17.2B	$25.4B	$29.2B	$33.1B	$37.8B	$40.6B	$40.9B	Total assetsAssets
—	—	—	$0	$2.0B	$2.0B	$2.0B	$2.0B	$2.0B	$2.0B	$2.0B	Total debtDebt
—	—	—	($6.5B)	($4.7B)	($10.6B)	($12.4B)	($14.3B)	($15.9B)	($16.9B)	($16.6B)	Net debt / (cash)Net debt
184.8×	82.9×	89.9×	73.2×	62.9×	156.1×	79.8×	55.4×	72.3×	81.7×	75.6×	Interest coverageInt. cov.
$4.4B	$6.1B	$8.8B	$11.1B	$11.0B	$18.8B	$22.7B	$26.0B	$29.4B	$31.3B	$31.4B	Shareholders’ equityEquity
11.5%	8.6%	8.3%	7.1%	5.1%	3.7%	6.0%	6.7%	6.9%	6.9%	6.7%	Stock comp / revenueSBC/rev
											Per share
116M	116M	115M	115M	115M	112M	114M	114M	115M	109M	108M	Shares out (diluted)Shares
$41.79	$50.67	$44.82	$57.22	$73.82	$143.24	$107.25	$115.37	$123.39	$132.07	$138.53	Revenue / shareRev/sh
$7.70	$10.34	$21.29	$18.46	$30.52	$71.97	$38.22	$34.77	$38.34	$41.48	$41.07	EPS (diluted)EPS
$11.88	$10.02	$17.83	$19.37	$20.70	$60.56	$41.18	$36.70	$34.21	$40.84	$41.53	Owner earnings / shareOE/sh
$8.37	$8.93	$15.78	$17.46	$17.41	$58.19	$38.99	$34.08	$31.84	$37.57	$38.19	Free cash flow / shareFCF/sh
—	—	—	—	—	—	—	$0.00	$0.00	$3.41	$3.48	Dividends / shareDiv/sh
$4.40	$2.35	$3.34	$3.75	$5.34	$4.92	$5.20	$6.32	$6.57	$8.27	$8.35	Cap. spending / shareCapex/sh
$38.26	$53.01	$76.28	$96.77	$95.79	$167.28	$199.68	$228.44	$255.03	$287.82	$291.77	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	9-yr	5-yr
Revenue / share	+13.6%/yr	+12.3%/yr
Owner earnings / share	+14.7%/yr	+14.6%/yr
EPS	+20.6%/yr	+6.3%/yr
Capital spending / share	+7.3%/yr	+9.2%/yr
Book value / share	+25.1%/yr	+24.6%/yr

The record, charted

FY2016–2025

Each measure over its full record; the current point and the worst year marked.

Share count

109Mpeak FY2016

ROIC

10%low FY2025

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$4.4Bowner earningsvs.$4.5Bnet incomelow FY2017

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetained

Each year's operating cash, by what management did with it: the mix, and how it drifts.

FY2016FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business earned $4.4B of owner earnings, the operating cash left after the $544M it takes just to hold its position. It put $355M more into growth; free cash flow, after that spending, was $4.1B.

Reported net income$4.5B

Owner earnings$4.4B · 31% of revenue

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	$4.5B	$4.4B	$4.0B	$4.3B	$8.1B
Depreciation & amortizationnon-cash charge added back	+$544M	+$483M	+$421M	+$341M	+$286M
Stock-based compensationreal costnon-cash, but a real cost	+$994M	+$983M	+$885M	+$725M	+$602M
Working capital & othertiming of cash in and out, other non-cash items	−$1.1B	−$1.5B	−$666M	−$390M	−$1.9B
Cash from operations	$5.0B	$4.4B	$4.6B	$5.0B	$7.1B
Maintenance capital expenditurethe spending needed just to hold position and volume	−$544M	−$483M	−$421M	−$341M	−$286M
Owner earnings	$4.4B	$3.9B	$4.2B	$4.7B	$6.8B
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	−$355M	−$273M	−$298M	−$249M	−$266M
Free cash flow	$4.1B	$3.7B	$3.9B	$4.4B	$6.5B
Owner-earnings marginowner earnings ÷ revenue	31%	28%	32%	38%	42%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the maintenance capital it must spend to hold its position (here about $544M, roughly its depreciation, the rate its assets wear out). The other $355M of its capital spending is growth it chose, not upkeep it owed; charged only with the maintenance it must do, the business earns well more than the year's free cash flow shows. The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $994M), owner earnings is nearer $3.4B.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? 81.7×

Comfortable

Operating income $3.6B ÷ interest expense $44M

What this means
Operating profit covers interest with the kind of margin Graham wanted for a defensive holding. Necessary, not sufficient, it says solvent, not cheap.
How heavy is the debt, net of cash? +$6.6B

Net cash

Cash $3.1B + ST investments $5.5B − debt $2.0B

What this means
Cash and short-term investments exceed every dollar of debt by $6.6B, on net the company owes nothing, and can act from strength when others can't. It also holds $10.3B in longer-dated marketable securities; counting those, it sits at net cash of $16.9B. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 2196d

Long (60+ days)

DSO 146 + DIO 2900 − DPO 851 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.

Is it a good business?

Return on invested capital 20%

High through the cycle

10-yr median, range 10%–43%; 10% latest = NOPAT $3.1B ÷ invested capital $30.1B

Industry peers: median 2%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 10 years (it ran 10% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 31%

High through the cycle

10-yr median margin, range 20%–42%; latest $4.4B = operating cash $5.0B − maintenance capex $544M

Industry peers: median 13%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 31% of revenue this year, a 31% median across 10 years. Treating stock comp as the real expense it is (less $994M of SBC) leaves $3.4B.
Are earnings backed by cash? 1.11×

Cash-backed

Cash from ops $5.0B ÷ net income $4.5B

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 86%

Returns about half

Dividends + buybacks $3.8B ÷ Owner Earnings $4.4B

What this means
Of $4.4B Owner Earnings, $3.8B (86%) went back to shareholders, $370M dividends, $3.4B buybacks. Net of $994M stock comp, the real buyback was about $2.4B. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
Investing or harvesting? 1.65×

Expanding

Capex $898M ÷ depreciation $544M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 5 of 6 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Pass

Revenue ≥ $2B · $14.3B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Pass

Current ratio ≥ 2× · 4.13×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Pass

Debt ≤ working capital · $2.0B vs $13.7B WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Pass

A profit every year (10-yr record) · no losses

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · 1 of 10 yrs

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth Pass

Earnings +33% over the record · +184%

What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $41.25/share (latest year $43.32), the averaged base the calculator's gate runs on, and book value is $300.55/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2016–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 10 of 10

What this means
Never lost money over the record, the earnings stability Graham insisted on.
Return on capital ≥ 15% 5 of 7 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin 37% → 28% (3-yr avg ends)

What this means
Through the cycle the operating margin slipped — about 37% early to 28% lately, median 34% — competition or costs are biting in.
Reinvestment, incremental ROIC 13%

What this means
Reinvested capital came back at only a modest incremental return — near the cost of capital, where extra growth adds little per dollar. The record shows whether it is a soft stretch or a thinning moat.
Owner earnings growth +14%/yr

What this means
Owner earnings grew about 14% a year over the record.
Worst year 2025 · 24.9% op. margin

What this means
Stayed profitable even in its hardest year, the resilience that survives recessions.
Share count −0.8%/yr

What this means
The share count is shrinking, buybacks are quietly growing your slice of the business.
Dividend record paid

What this means
Paid a dividend in 1 of the years on record.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

In its own filing Raised, but not as a competitor

The filing raises AI among its risks, but in other terms (security, regulation, energy or the like), not as a competitor to its product.

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$18.2B

Cash & short-term investments$8.8B
Receivables$5.7B
Inventory$3.1B
Other current assets$621M

Current liabilities$5.1B

Accounts payable$1.0B
Other current liabilities$4.1B

Current ratio3.57×all current assets ÷ what's due · Graham looked for 2×

Quick ratio2.96×stricter: inventory excluded

Cash ratio1.71×strictest: cash alone against what's due

Working capital$13.1Bthe cushion left after near-term bills

Revenue, latest quarter vs. a year ago+19.0%the freshest read on whether the business is still growing

Current ratio, recent quarters5.4× → 3.6×

Deeper floors

Tangible book value$30.1Bequity stripped of goodwill & intangibles

Net current asset value$8.8BGraham's net-net: current assets less all liabilities

Debt incl. operating leases$2.3B$267M of it operating leases; with finance leases, “total fixed claims” below reaches $3.0B (annual-report basis)

Deferred revenue$861Mcustomer cash collected before delivery; operating float

From the company's latest filing.

Lease obligations

the lease note, SEC EDGAR →

Debt by another name. What the business owes on the property, aircraft, stores and equipment it rents rather than owns is a fixed claim due on a schedule; added back to the debt, it is the true leverage. That ladder, operating and finance leases together, and what it adds to the debt on the page above.

Operating leasesFinance leases

'26$86M

'27$780M

'28$49M

'29$40M

'30$31M

later$98M

Lease payments by year, scaled to the largest; “later” is everything beyond year five, shown apart. These are the contractual cash payments, before the interest the filing imputes back out to the balance-sheet liability.

Due in the next 12 months$86Ma fixed cash payment, owed whether or not the business has a good year

Total lease payments$1.1Bevery year plus the tail, undiscounted: the full cash the leases will take

On the balance sheet$987Mthe present value of those payments, the recognised lease liability

True leverage: debt plus leases

On-balance-sheet debt$2.0B

Lease obligations (present value)$987M

Total fixed claims on the business$3.0B

Counting the leases the way Buffett does, the fixed claims on this business come to $3.0B, of which the leases are 33%. The lease wall above and the debt schedule together are the calendar of what must be paid, and when.

Lease ladder read from the ASC 842 tags in the company’s Dec 31, 2025 annual report and reconciled: the yearly buckets sum to the undiscounted total, which less the imputed interest equals the balance-sheet liability; a ladder that doesn’t tie out is withheld.

How the cash was used, 2016–2025

Over the record, the business generated $36.1B of operating cash; how management split it reads as a balanced allocator, splitting cash between the business, owners, and the balance sheet.

Reinvested$5.7B · 16%
Dividends$370M · 1%
Buybacks$18.1B · 50%
Retained (debt / cash)$11.9B · 33%

Returned to owners$18.5B
56% of the owner earnings the business produced over the span, $370M as dividends and $18.1B as buybacks.
Source of fundingOperating cash
Operating cash covered reinvestment and returns; over the span cash and short-term investments rose $7.7B.
Average price paid for buybacks—
Buybacks ran $18.1B over the span, but a stock split in the window left the reported buyback-share counts on a basis the diluted-share count doesn't match, so a comparable average price can't be drawn.
Net change in share count−7.4%
The diluted count fell from 116M to 108M, so the buybacks outran the stock issued to staff.
Dividend record$3.41/sh
Paid in 1 of the years on record. It was never cut over the span.
Return on what it retained16%
Of the earnings it kept rather than paid out ($16.9B over the span), annual owner earnings (first three years vs last three) grew $2.7B, so each retained $1 added about 0.16 of yearly owner earnings. Buffett's test, run on owner earnings instead of market value.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Owner earnings
2021	Leonard S. Schleifer	$6.5M	$123.7M	$6.8B
2022	Leonard S. Schleifer	$7.0M	$98.8M	$4.7B
2023	Leonard S. Schleifer	$8.2M	$141.1M	$4.2B
2024	Leonard S. Schleifer	$6.8M	−$37.7M	$3.9B
2025	Leonard S. Schleifer	$7.3M	$39.0M	$4.4B

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Stock-based compensation$994M
The slice of the business handed to employees in shares this year, 7% of revenue, equal to 28% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why Regeneron Pharmaceuticals Inc. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2025.

1 of the 4 tests turned up something to look into; the other 3 came back clean.

Look hereDid receivables and inventory outpace sales?36% → 59% of sales
Receivables and inventory grew from $1.7B to $8.8B while revenue grew 207%: working capital is climbing faster than sales (36% of revenue then, 59% now). That can mean customers paying slower, stock building up, or revenue pulled forward. The filing's cash-flow and receivables notes say which.

And these came back clean

Is it less profitable than it was?
Did the share count rise anyway?
Did reported profit become cash?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2025

read the 10-K →

How much of the revenue rides on one buyer?
≈$1.5B · 10% of revenue on the largest customers (TTM)
“For the year ended December 31, 2025, we had sales to two customers that each accounted for more than 10% of total gross product revenue.”verify →
Which reported numbers are a judgment call?
Management names Income taxes, Inventory, Stock compensation, Contingencies as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Pharmaceuticals

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
TEVATeva Pharmaceutical Industries Limited	$17.3B	48%	-2.2%	-2%	6%
REGNRegeneron Pharmaceuticals Inc.	$14.3B	—	34.6%	21%	31%
VTRSViatris	$14.3B	34%	2.5%	0%	14%
VRTXVertex Pharmaceuticals Incorporated	$12.0B	87%	31.8%	36%	34%
BHCBausch Health Companies Inc.	$10.3B	76%	5.5%	2%	13%
ZTSZoetis Inc.	$9.5B	69%	34.2%	26%	22%
OGNOrganon	$6.2B	62%	25.0%	17%	12%
ONCBeOne Medicines Ltd.	$5.3B	86%	-124.4%	-46%	-112%
Group median	—	—	15.2%	10%	14%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Regeneron Pharmaceuticals Inc. has delivered.

Today’s price $

Through the cycle, Regeneron Pharmaceuticals Inc. earns about $4.5B on its 31.4% median owner-earnings margin. This year’s 30.9% margin runs in line with that. Normalize, below, values the price on that through-cycle figure rather than the latest year.

Base Normalize · through-cycle ($4.5B) Net of stock comp (−$995M) Steady-state · maintenance capex ($4.5B)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’21→’25−8%/yr

Owner-earnings growth · ’16→’25+16%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Free cash flow $4.1B on 104M shares outstanding (a weighted basic average, the only count this filer tags); net cash $16.6B. The if-converted diluted count is 108M, 4% above the shares outstanding: the dilution overhang (convertibles, options) a buyer inherits. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. Capex ($900M) runs well above depreciation ($540M), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about $4.5B, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh REGN against another business →

The owners of REGN: the meeting and the votes →

Cite: Owner Scorecard, "Regeneron Pharmaceuticals Inc. (REGN), the owner's record," https://ownerscorecard.com/c/REGN, data as of 2026-07-09.

Manual order: ← REGCP its page in the Manual RELY →

Industry order: ← RDY the Pharmaceuticals chapter RIGL →