Regeneron Pharmaceuticals profit fell in the fourth quarter, despite higher revenue, on the back of higher research-and-development expenses.

The biotechnology company posted on Friday a lower net income of $845 million, or $7.86 a share, compared with $918 million, or $8.06 a share, in the same quarter a year earlier.

Adjusted earnings came to $11.44 a share. According to FactSet, analysts were expecting $10.74 a share.

Total revenue rose 3% to $3.88 billion, topping analyst forecasts of $3.81 billion.

R&D expenses rose 15% to $1.63 billion in the quarter.

For 2026, Regeneron estimates R&D expenses to be in the range of $6.45 billion to $6.68 billion, and when adjusting for stock-based compensation expenses, the range is forecasted at between $5.9 billion and $6.1 billion.

Chief Financial Officer Christopher Fenimore said the company's priorities this year remain on internal investments, evaluating complementary business-development opportunities, and capital returns through share repurchases and dividends.

Shares were down 2.1% to $733.49 in premarket trading.