Disappointing Trial Results Hurt Regeneron Pharmaceuticals (REGN) in Q2

1 month ago 9

Soumya Eswaran

Mon, July 13, 2026 astatine 9:33 AM CDT 3 min read

Longleaf Partners, managed by Southeastern Asset Management, released its second-quarter 2026 capitalist missive for its "Partners Fund". A transcript of the missive tin beryllium downloaded here. The missive states that the portfolio holdings are charismatic present based connected some P/V and P/FCF metrics. However, the Fund returned 3.87% successful the quarter, importantly lagging the S&P 500's 15.20% instrumentality and the Russell 1000 Value Index's 13.87% gain. An underweight successful Information Technology (IT) chiefly contributed to the underperformance. The market's penchant for overvalued stocks successful Industrials and different sectors led to inflated multiples, overshadowing existent net power. The Firm's concern attack focuses connected median, unweighted multiples, prioritizing maturation successful escaped currency travel per share, the imaginable for aggregate expansion, and strategical initiatives. In addition, delight cheque the Fund's apical 5 holdings to cognize its champion picks successful 2026.

In its Q2 2026 capitalist letter, Longleaf Partners Fund highlighted Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN). Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is simply a biotechnology institution that develops and commercializes medicines to dainty assorted diseases. On July 10, 2026, Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) closed astatine $664.52 per share, reflecting a marketplace capitalization of $69.66 billion. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) posted a one-month instrumentality of 8.06%, portion its shares gained 16.46% implicit the past 52 weeks.

Longleaf Partners Fund stated the pursuing regarding Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) successful its Q2 2026 capitalist update:

"Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) – Healthcare institution Regeneron was a detractor successful the 4th aft disappointing proceedings results for 1 of its pipeline drugs. When we archetypal invested successful the institution past year, the keys to the lawsuit were continued spot astatine Dupixent, Eylea stabilization, pipeline occurrence and intelligent superior allocation. Dupixent (over 50% of the value) has outgrown our expectations and Eylea (less than 15% of the value) has stabilized aft immoderate archetypal hiccups. There were 3 cardinal pipeline readouts coming implicit the adjacent 18 months erstwhile we invested, and Regeneron has present fundamentally gone 1 retired of three, erstwhile we thought 2 retired of 3 was much likely. We trimmed immoderate of our holding erstwhile the marketplace was moving hotter connected Regeneron's pipeline prospects earlier this year. The marketplace is present focused connected that weaker near-term batting mean and ignoring the company's beardown semipermanent record. We person been encouraged to spot the institution thin into stock repurchase erstwhile it has been astir undervalued and proceed to debar large, value-destructive M&A."

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