Regeneron Pharmaceuticals' (REGN) 2026 is shaping up as a "potentially balanced year," with Dupixent likely to continue strong growth and mid-year Sanofi (SNY) collaboration expected to contribute to revenue and EPS, RBC Capital Markets said.

Dupixent revenue reached $4.94 billion in fiscal 2025, compared with the prior consensus of $4.67 billion, while Eylea generated $577 million, helped by label enhancements, the brokerage said in a Friday note.

The investment firm noted that near-term pipeline drivers beyond Fianlimab are limited and that additional biosimilar entries could pressure the ophthalmology market. Fianlimab combined with cemiplimab first-line metastatic melanoma data is expected in H1 2026, with Regeneron targeting progression-free survival comparable to Opdulag.

RBC also highlighted the expected repayment of Sanofi development fees, which could drive a roughly $2.2 billion increase in collaboration revenue and support EPS growth to $46.45.

The firm said Regeneron's ongoing research programs, including new antibody therapies and other pipeline assets, support confidence in the company's long-term growth potential, even if near-term revenue is mainly driven by Dupixent and Sanofi collaboration.

RBC has a sector perform on the company's stock, with a $745 price target.

Shares of Regeneron were up nearly 2% in recent trading.

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