Should Regeneron be worried about the future?

The rosy version of Regeneron Pharmaceuticals’ future is that the storied company will offset the decline of its aging products with money made in the newly embraced field of oncology. But Regeneron’s latest corporate update suggests things might get a little more complicated.

Yesterday, Regeneron reported earnings that fell 17% below analyst expectations, and the news came alongside a setback for one of its cancer programs. A study combining the bispecific antibody REGN1979 alongside Regeneron’s approved PD-1 inhibitor resulted in two deaths among 30 patients. The combination is meant to be a safer alternative to CAR-T in advanced blood cancers, but if worrying safety signals persist, that thesis could go out the window.

It wasn’t all bad news, as Regeneron’s anti-inflammatory drug Dupixent is continuing to grow, and the rest of the company’s cancer pipeline is moving as expected. But revenue from the blockbuster drug Eyelea will not last forever, and Regeneron will have to execute on its grand plan to keep the narrative intact.