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Regeneron Just Lost A Cancer Showdown With Keytruda — Should Investors Panic?

Regeneron Pharmaceuticals suffered a sharp investor backlash after its experimental melanoma combination of fianlimab and Libtayo failed to show a statistically significant improvement in progression-free survival versus Merck’s Keytruda in a late-stage trial. The result mattered because fianlimab was not a small, forgotten pipeline asset. It was a visible oncology catalyst that investors were watching closely as Regeneron tried to expand Libtayo’s role beyond its existing strength in skin cancers and lung cancer. The setback triggered analyst downgrades, a nearly 10% one-day stock decline, and renewed questions about whether Regeneron’s future growth remains too dependent on Dupixent, EYLEA HD, and a still-unproven broader pipeline. However, the company entered this disappointment with strong commercial momentum, double-digit revenue growth, rising earnings, a sizeable cash position, and multiple late-stage programs still moving forward. The issue is not whether Regeneron is broken, but whether the market should lower expectations for its next blockbuster engine.