Financial Analysis

"Debt a. Senior Notes Long-term debt, net of underwriting discounts and offering expenses (which are being amortized as additional interest expense over the period of issuance through maturity), consists of the following: As of December 31, (In millions) 2025 2024 1.750% Senior Notes due September 2030 $ 1,244.5 $ 1,243.3 2.800% Senior Notes due September 2050 741.4 741.1 $ 1,985.9 $ 1,984.4 Interest on each series of senior notes is payable semi-annually until the applicable maturity dates. Interest expense related to the debt was $44.4 million in each of the years ended December 31, 2025, 2024, and 2023. b. Credit Facility The Company is party to an agreement with a syndicate of lenders (the ""Credit Agreement"") which provides for a $750.0 million senior unsecured five-year revolving credit facility (the ""Credit Facility""). The Credit Agreement includes an option for the Company to elect to increase the commitments under the Credit Facility and/or to enter into one or more tranches of term loans in the aggregate principal amount of up to $500.0 million, subject to the consent of the lenders providing the additional commitments or term loans, as applicable, and certain other conditions. The Credit Agreement also provides a $50.0 million sublimit for letters of credit. Proceeds of the loans under the Credit Facility may be used to finance working capital needs, and for general corporate or other lawful purposes, of Regeneron and its subsidiaries. Regeneron Pharmaceuticals, …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Net product sales consist of the following: Year Ended December 31, (In millions) 2025 2024 2023 EYLEA HD U.S. $ 1,636.9 $ 1,201.1 $ 165.8 EYLEA U.S. 2,747.8 4,767.1 5,719.6 Total EYLEA HD and EYLEA U.S. 4,384.7 5,968.2 5,885.4 Libtayo U.S. 944.7 787.3 538.8 Libtayo Rest of world 507.5 429.5 324.3 Total Libtayo Global 1,452.2 1,216.8 863.1 Praluent U.S. 262.5 241.7 182.4 Evkeeza U.S. 162.2 125.7 77.3 Inmazeb U.S. 37.4 76.8 69.8 Other products Global 10.1 $ 6,309.1 $ 7,629.2 $ 7,078.0 Amounts recognized in the Company's Statements of Operations in connection with its Sanofi collaboration are as follows: Statement of Operations Classification Year Ended December 31, (In millions) 2025 2024 2023 Regeneron's share of profits Collaboration revenue $ 5,241.6 $ 3,923.5 $ 3,136.5 Sales-based milestones earned Collaboration revenue $ $ $ 50.0 Reimbursement for manufacturing of commercial supplies Collaboration revenue $ 642.4 $ 607.9 $ 613.0 Regeneron's obligation for its share of Sanofi R&D expenses, net of reimbursement of R&D expenses (R&D expense) $ (69.5) $ (46.8) $ (83.7) Reimbursement of commercialization-related expenses Reduction of SG&A expense $ 729.3 $ 655.4 $ 534.4 Amounts recognized in the Company's Statements of Operations in connection with its Bayer collaboration are as follows: Statement of Operations Classification Year Ended December 31, (In millions) 2025 2024 2023 Regeneron's share of profits Collaboration revenue $ 1,282.7 $ 1,403.3 $ 1,376.4 Rei …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

"Long-Term Incentive Plans The Company has used long-term incentive plans for the purpose of granting equity awards to employees of the Company, including officers, and non-employee members of the Company's board of directors (collectively, ""Participants""). The Participants may receive awards as determined by a committee of independent members of the Company's board of directors or, to the extent authorized by such committee with respect to certain Participants, a duly authorized employee (collectively, the ""Committee""). The incentive plan currently used by the Company is the Second Amended and Restated Regeneron Pharmaceuticals, Inc. 2014 Long-Term Incentive Plan (the ""Second Amended and Restated 2014 Incentive Plan""). It was most recently adopted and approved by the Company's shareholders in 2020. As of the most recent shareholder approval date, the Second Amended and Restated 2014 Incentive Plan provided for the issuance of up to 22.3 million shares of Common Stock in respect of awards. In addition, upon expiration, forfeiture, surrender, exchange, cancellation, or termination of any award previously granted under the Amended and Restated Regeneron Pharmaceuticals, Inc. 2014 Long-Term Incentive Plan (the ""Amended and Restated 2014 Incentive Plan""), the Regeneron Pharmaceuticals, Inc. 2014 Long-Term Incentive Plan (the ""Original 2014 Incentive Plan""), or the Second Amended and Restated 2000 Long-Term Incentive Plan (the ""2000 Incentive Plan""), any shares subject …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair Value Measurements The table below summarizes the Company's assets and liabilities which are measured at fair value on a recurring basis. The following fair value hierarchy is used to classify assets and liabilities, based on inputs to valuation techniques utilized to measure fair value: Level 1 - Quoted prices in active markets for identical assets or liabilities Level 2 - Significant other observable inputs, such as quoted market prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, or model-based valuations in which significant inputs used are observable Level 3 - Significant other unobservable inputs (In millions) Fair Value Measurements at Reporting Date As of December 31, 2025 Fair Value Level 1 Level 2 Level 3 Assets: Cash equivalents $ 2,121.6 $ 1,127.7 $ 993.9 $ Available-for-sale debt securities: Corporate bonds 10,219.5 10,219.5 U.S. government and government agency obligations 4,367.3 4,367.3 Commercial paper 541.1 541.1 Certificates of deposit 265.9 265.9 Asset-backed securities 242.8 242.8 Sovereign bonds 76.8 76.8 Equity securities (a) 34.3 34.3 Total assets $ 17,869.3 $ 1,162.0 $ 16,707.3 $ Liabilities: Contingent consideration $ 10.3 $ $ $ 10.3 As of December 31, 2024 Assets: Cash equivalents $ 1,452.2 $ 1,264.2 $ 188.0 $ Available-for-sale debt securities: Corporate bonds 8,220.6 8,220.6 U.S. government and government agency obligations 4,817.0 4,817.0 Commercial paper 548.7 …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"Income Taxes The Company is subject to U.S. federal, state, and foreign income taxes. Components of income before income taxes consist of the following: Year Ended December 31, (In millions) 2025 2024 2023 United States $ (476.3) $ (411.3) $ (362.3) Foreign 5,707.0 5,191.2 4,561.6 $ 5,230.7 $ 4,779.9 $ 4,199.3 Components of income tax expense consist of the following: Year Ended December 31, (In millions) 2025 2024 2023 Current: Federal $ 1,012.3 $ 1,092.6 $ 667.9 State 19.8 (11.1) 7.7 Foreign 479.1 43.1 407.9 Total current tax expense 1,511.2 1,124.6 1,083.5 Deferred: Federal (845.2) (935.5) (834.5) State (15.5) (4.9) (6.5) Foreign 75.3 183.1 3.2 Total deferred tax benefit (785.4) (757.3) (837.8) $ 725.8 $ 367.3 $ 245.7 Cash paid for income taxes, net of refunds received, by jurisdiction for the year ended December 31, 2025 is as follows: (In millions) 2025 Federal $ 576.5 State 5.3 Foreign: Ireland 645.2 Other 26.0 $ 1,253.0 Cash paid for income taxes, net of refunds received, were $743.0 million and $870.3 million for the years ended December 31, 2024 and 2023, respectively. On July 4, 2025, bill H.R. 1, commonly referred to as the ""One Big Beautiful Bill Act"" or ""OBBBA,"" was signed into law, with certain provisions effective in 2025 and others in 2026. The OBBBA significantly revises U.S. corporate income tax laws by, among other things, restoring the option for immediate expense recognition for U.S.-based research and development expenditures and making permanent th …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"Legal Matters From time to time, the Company is a party to legal proceedings in the course of the Company's business. The outcome of any such proceedings, regardless of the merits, is inherently uncertain. If the Company is unable to prevail in one or more of such proceedings, its consolidated financial position, results of operations, and future cash flows may be materially adversely impacted. Costs associated with the Company's involvement in legal proceedings are expensed as incurred. The Company recognizes gain contingencies associated with such proceedings when the award or recovery is realized or realizable and loss contingencies when it is probable that a liability will be incurred and the amount of loss can be reasonably estimated. As of December 31, 2025 and 2024, the Company's accruals for loss contingencies were not material. There are certain loss contingencies that the Company deems reasonably possible for which the possible loss or range of possible loss is not estimable at this time. a. Proceedings Relating to EYLEA (aflibercept) Injection (1) United States As described in greater detail below, the Company has filed several patent infringement lawsuits against various parties in the United States alleging infringement of certain Company patents pertaining to EYLEA, and certain of these patents have also been subject to post-grant proceedings before the United States Patent and Trademark Office (""USPTO""). (i) U.S. Patent Litigation In 2025, the Company entere …

LegalMattersAndContingenciesTextBlock · excerpt; the full note is in the filing

"Leases The Company conducts certain of its research, development, and administrative activities at leased facilities. The Company also leases vehicles and other assets. Tarrytown, New York Corporate Headquarters The Company leases laboratory and office facilities for its corporate headquarters in Tarrytown, New York (the ""Facility"") under the Third Amended and Restated Lease and Remedies Agreement (the ""Lease"") with BA Leasing BSC, LLC, an affiliate of Banc of America Leasing & Capital, LLC (""BAL""), as lessor, and the Third Amended and Restated Participation Agreement (the ""Participation Agreement"") with Bank of America, N.A., as administrative agent, and a syndicate of lenders (collectively with BAL, the ""Participants""), as rent assignees. The Lease, Participation Agreement, and certain related agreements provide for $720.0 million of lease financing (previously advanced by the Participants in March 2017 in connection with the acquisition by BAL of the Facility and the Company's lease of the Facility from BAL), which matures when the term of the Lease expires in March 2027, at which time all amounts outstanding thereunder will become payable in full. The Company has the option to further extend the maturity date of the Participation Agreement and the term of the Lease for an additional five-year period, subject to the consent of the Participants and certain other conditions. The Company also has the option to (a) purchase the Facility by paying an amount equal …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Recently Issued Accounting Standards Standard/Description Effective Date Impact of Adoption on the Company's Financial Statements ASU 2023-09: In December 2023, the FASB issued amended guidance related to improvements to income tax disclosures . The amendments require annually (i) enhanced disclosures in connection with an entity's effective tax rate reconciliation and (ii) income taxes paid disaggregated by jurisdiction. January 1, 2025 Adopted prospectively; see Note 15 ASU 2024-03: In November 2024, the FASB issued new guidance which requires disclosure of disaggregated income statement expense information about specific categories (including purchases of inventory, employee compensation, depreciation, and intangible asset amortization) in the notes to financial statements. January 1, 2027 for annual reporting periods and January 1, 2028 for interim reporting periods Currently evaluating impact ASU 2025-06: In September 2025, the FASB issued new guidance to modernize the accounting for software costs by updating the criteria as to when entities are required to start capitalizing internal-use software (by removing all references to software development ""projects stages""). January 1, 2028 Early adopted January 1, 2026; no significant impact expected"

NewAccountingPronouncementsPolicyPolicyTextBlock

"Employee Savings Plans The Company maintains the Regeneron Pharmaceuticals, Inc. 401(k) Savings Plan, as amended and restated (the ""Savings Plan""). The terms of the Savings Plan allow U.S. employees (as defined by the Savings Plan) to contribute to the Savings Plan a percentage of their compensation. In addition, the Company may make discretionary contributions, as defined, to the accounts of participants under the Savings Plan. The Company also maintains additional employee savings plans outside the United States, which cover eligible employees. Expenses recognized by the Company related to contributions to such plans were $95.7 million, $90.2 million, and $84.7 million for the years ended December 31, 2025, 2024, and 2023, respectively."

PensionAndOtherPostretirementBenefitsDisclosureTextBlock

Product Sales Net product sales consist of the following: Year Ended December 31, (In millions) 2025 2024 2023 EYLEA HD U.S. $ 1,636.9 $ 1,201.1 $ 165.8 EYLEA U.S. 2,747.8 4,767.1 5,719.6 Total EYLEA HD and EYLEA U.S. 4,384.7 5,968.2 5,885.4 Libtayo U.S. 944.7 787.3 538.8 Libtayo Rest of world 507.5 429.5 324.3 Total Libtayo Global 1,452.2 1,216.8 863.1 Praluent U.S. 262.5 241.7 182.4 Evkeeza U.S. 162.2 125.7 77.3 Inmazeb U.S. 37.4 76.8 69.8 Other products Global 10.1 $ 6,309.1 $ 7,629.2 $ 7,078.0 As of December 31, 2025 and 2024, the Company had $3.458 billion and $4.278 billion, respectively, of trade accounts receivable that were recorded within Accounts receivable, net. As of December 31, 2025 and 2024, two individual customers accounted for 87% and 79%, respectively, of the Company's net trade accounts receivable balances. The Company had product sales to certain customers that each accounted for more than 10% of total gross product revenue for the years ended December 31, 2025, 2024, and 2023. Sales to each of these customers as a percentage of the Company's total gross product revenue are as follows: Year Ended December 31, 2025 2024 2023 Customer A 50 % 50 % 51 % Customer B 27 % 24 % 25 % Revenue from product sales is recorded net of applicable provisions for rebates, chargebacks, and discounts, distribution-related fees, and other sales-related deductions. Accruals for chargebacks and discounts are recorded as a direct reduction to accounts receivable. Accruals for r …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"Segment Information The Company operates in one business segment, which includes all activities related to the discovery, development, and commercialization of medicines for serious diseases. The determination of a single business segment is consistent with the consolidated financial information regularly provided to the Company's chief operating decision maker (""CODM""). The Company's CODM is its Chief Executive Officer, who reviews and evaluates consolidated net income for purposes of assessing performance, making operating decisions, allocating resources, and planning and forecasting for future periods. In addition to the significant expense categories included within consolidated net income presented on the Company's Consolidated Statements of Operations, see below for disaggregated amounts that comprise research and development expenses: Year Ended December 31, (In millions) 2025 2024 2023 Direct research and development expenses (a) $ 1,758.1 $ 1,588.8 $ 1,295.6 Indirect research and development expenses: Payroll and benefits 1,800.8 1,681.7 1,537.0 Lab supplies and other research and development costs 258.2 241.5 210.6 Occupancy and other operating costs 635.4 614.9 518.2 Total indirect research and development expenses 2,694.4 2,538.1 2,265.8 Clinical manufacturing costs 1,391.2 1,195.9 1,053.9 Priority review voucher 155.0 Reimbursement of research and development expenses by collaborators (148.5) (190.8) (176.3) Total research and development expenses $ 5,850.2 $ …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Business Overview and Summary of Significant Accounting Policies Organization and Business Regeneron Pharmaceuticals, Inc. and its subsidiaries (""Regeneron,"" ""Company,"" ""we,"" ""us,"" and ""our"") is a fully integrated biotechnology company that invents, develops, manufactures, and commercializes medicines for people with serious diseases. The Company's products and product candidates in development are designed to help patients with eye diseases, allergic and inflammatory diseases, cancer, cardiovascular and metabolic diseases, neurological diseases, hematologic conditions, infectious diseases, and rare diseases. The Company's research and development efforts have led to numerous products that have received marketing approval. The Company is a party to collaboration and license agreements to develop and commercialize, as applicable, certain products and product candidates (see Note 3). The Company's business is subject to certain risks including, but not limited to, uncertainties relating to conducting research activities, product development, obtaining regulatory approvals, competition, and obtaining and enforcing patents. Basis of Presentation The consolidated financial statements include the accounts of Regeneron and its wholly-owned subsidiaries. Intercompany balances and transactions are eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estim …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Stockholders' Equity The Company's Restated Certificate of Incorporation, as amended, provides for the issuance of up to 40 million shares of Class A Stock, par value $0.001 per share, and 320 million shares of Common Stock, par value $0.001 per share. Shares of Class A Stock are convertible, at any time, at the option of the holder into shares of Common Stock on a share-for-share basis. Holders of Class A Stock have rights and privileges identical to Common Stockholders except that each share of Class A is entitled to ten votes per share, while each share of Common Stock is entitled to one vote per share. Class A Stock may only be transferred to specified Permitted Transferees, as defined. Under the Company's Restated Certificate of Incorporation, the Company's board of directors is authorized to issue up to 30 million shares of Preferred Stock, in series, with rights, privileges, and qualifications of each series determined by the board of directors. a. Share Repurchase Programs The Company's board of directors has authorized share repurchase programs, including a share repurchase program for up to $3.0 billion of the Company's Common Stock which was authorized in February 2025. The programs have no time limit and can be discontinued at any time. The table below summarizes the shares of the Company's Common Stock that the Company repurchased under its share repurchase programs and the cost of such shares, which were recorded as Treasury Stock. Year Ended December 31, (In mi …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Net product sales consist of the following: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2026 2025 2026 2025 EYLEA HD U.S. $ 596.3 $ 393.2 $ 1,064.7 $ 700.0 EYLEA U.S. 412.2 754.3 885.3 1,490.3 Total EYLEA HD and EYLEA U.S. 1,008.5 1,147.5 1,950.0 2,190.3 Libtayo U.S. 342.6 247.8 628.7 440.3 Libtayo Rest of world 146.8 128.7 298.9 221.3 Total Libtayo Global 489.4 376.5 927.6 661.6 Praluent U.S. 74.7 65.8 141.3 122.6 Evkeeza U.S. 53.3 41.2 99.0 72.1 Lynozyfic Global 16.5 27.7 Other products Global 31.3 $ 1,642.4 $ 1,631.0 $ 3,176.9 $ 3,046.6 Amounts recognized in the Company's Statements of Operations in connection with its Sanofi collaboration are as follows: Statement of Operations Classification Three Months Ended June 30, Six Months Ended June 30, (In millions) 2026 2025 2026 2025 Regeneron's share of profits Collaboration revenue $ 2,032.6 $ 1,282.1 $ 3,483.4 $ 2,300.2 Reimbursement for manufacturing of commercial supplies Collaboration revenue $ 141.7 $ 161.5 $ 296.0 $ 326.6 Regeneron's obligation for its share of Sanofi R&D expenses, net of reimbursement of R&D expenses (R&D expense) $ (19.4) $ (18.0) $ (36.1) $ (33.5) Reimbursement of commercialization-related expenses Reduction of SG&A expense $ 188.8 $ 194.0 $ 372.9 $ 353.2 Amounts recognized in the Company's Statements of Operations in connection with its Bayer collaboration are as follows: Statement of Operations Classification Three Months Ended June 30, Six Months Ended June …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Fair Value Measurements The following fair value hierarchy is used to classify assets and liabilities, based on inputs to valuation techniques utilized to measure fair value: Level 1 - Quoted prices in active markets for identical assets or liabilities Level 2 - Significant other observable inputs, such as quoted market prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, or model-based valuations in which significant inputs used are observable Level 3 - Significant other unobservable inputs The following tables summarize the Company's assets that are measured at fair value on a recurring basis: (In millions) Fair Fair Value Measurements at Reporting Date As of June 30, 2026 Value Level 1 Level 2 Cash equivalents $ 1,336.0 $ 1,205.3 $ 130.7 Available-for-sale debt securities: Corporate bonds 10,751.9 10,751.9 U.S. government and government agency obligations 3,303.5 3,303.5 Commercial paper 558.3 558.3 Certificates of deposit 304.1 304.1 Asset-backed securities 193.1 193.1 Sovereign bonds 78.3 78.3 Equity securities (a) 177.9 177.9 $ 16,703.1 $ 1,383.2 $ 15,319.9 As of December 31, 2025 Cash equivalents $ 2,121.6 $ 1,127.7 $ 993.9 Available-for-sale debt securities: Corporate bonds 10,219.5 10,219.5 U.S. government and government agency obligations 4,367.3 4,367.3 Commercial paper 541.1 541.1 Certificates of deposit 265.9 265.9 Asset-backed securities 242.8 242.8 Sovereign bonds 76.8 76.8 Equity s …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Income Taxes The Company's effective tax rate was 15.1% and 8.4% for the three months ended June 30, 2026 and 2025, respectively, and 14.2% and 9.2% for the six months ended June 30, 2026 and 2025, respectively. The Company's effective tax rate for the three and six months ended June 30, 2026 and 2025 was positively impacted, compared to the U.S. federal statutory rate, primarily by income earned in foreign jurisdictions with tax rates lower than the U.S. federal statutory rate and, to a lesser extent, tax benefits from cross-border tax laws and federal tax credits for research activities, partly offset by changes in unrecognized tax benefits. In addition, the Company's effective tax rate for the three and six months ended June 30, 2025 was positively impacted by the release of liabilities associated with unrecognized tax benefits upon the settlement of the IRS audit of the Company's 2017 and 2018 federal income tax returns.

IncomeTaxDisclosureTextBlock

"Legal Matters The Company is a party to legal proceedings that arise in the ordinary course of its business. The outcome of any such proceedings, regardless of the merits, is inherently uncertain. If the Company is unable to prevail in one or more of such proceedings, its consolidated financial position, results of operations, and future cash flows may be materially adversely impacted. The Company recognizes gain contingencies associated with such proceedings when the award or recovery is realized or realizable and loss contingencies when it is probable that a liability will be incurred and the amount of loss can be reasonably estimated. As of June 30, 2026 and December 31, 2025, the Company's accruals for loss contingencies were not material. There are certain loss contingencies that the Company deems reasonably possible for which the possible loss or range of possible loss is not estimable at this time. Costs associated with the Company's involvement in legal proceedings are expensed as incurred. a. Proceedings Relating to EYLEA (aflibercept) Injection (1) United States In addition to the patent infringement proceedings in the United States alleging infringement of certain Company patents pertaining to EYLEA discussed below, certain of these patents have also been subject to post-grant proceedings before the United States Patent and Trademark Office. On January 10, 2024, the Company filed a patent infringement lawsuit (as amended on January 7, 2026) against Amgen Inc. (""A …

LegalMattersAndContingenciesTextBlock · excerpt; the full note is in the filing

Recently Issued Accounting Standards Standard/Description Effective Date Impact of Adoption on the Company's Financial Statements ASU 2024-03: In November 2024, the FASB issued new guidance which requires disclosure of disaggregated income statement expense information about specific categories (including purchases of inventory, employee compensation, depreciation, and intangible asset amortization) in the notes to financial statements. January 1, 2027 for annual reporting periods and January 1, 2028 for interim reporting periods Currently evaluating impact

NewAccountingPronouncementsPolicyPolicyTextBlock

Product Sales Net product sales consist of the following: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2026 2025 2026 2025 EYLEA HD U.S. $ 596.3 $ 393.2 $ 1,064.7 $ 700.0 EYLEA U.S. 412.2 754.3 885.3 1,490.3 Total EYLEA HD and EYLEA U.S. 1,008.5 1,147.5 1,950.0 2,190.3 Libtayo U.S. 342.6 247.8 628.7 440.3 Libtayo Rest of world 146.8 128.7 298.9 221.3 Total Libtayo Global 489.4 376.5 927.6 661.6 Praluent U.S. 74.7 65.8 141.3 122.6 Evkeeza U.S. 53.3 41.2 99.0 72.1 Lynozyfic Global 16.5 27.7 Other products Global 31.3 $ 1,642.4 $ 1,631.0 $ 3,176.9 $ 3,046.6 As of June 30, 2026 and December 31, 2025, the Company had $3.784 billion and $3.458 billion, respectively, of trade accounts receivable that were recorded within Accounts receivable, net. The Company had product sales to certain customers that each accounted for more than 10% of total gross product revenue for the three and six months ended June 30, 2026 and 2025. Sales to each of these customers as a percentage of the Company's total gross product revenue are as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Customer A 45 % 52 % 45 % 52 % Customer B 32 % 24 % 31 % 24 % …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"Segment Information The Company operates in one business segment, which includes all activities related to the discovery, development, and commercialization of medicines for serious diseases. The determination of a single business segment is consistent with the consolidated financial information regularly provided to the Company's chief operating decision maker (""CODM""). The Company's CODM is its Chief Executive Officer, who reviews and evaluates consolidated net income for purposes of assessing performance, making operating decisions, allocating resources, and planning and forecasting for future periods. In addition to the significant expense categories included within consolidated net income presented on the Company's Condensed Consolidated Statements of Operations, see below for disaggregated amounts that comprise research and development expenses: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2026 2025 2026 2025 Direct research and development expenses (a) $ 539.2 $ 454.1 $ 1,037.8 $ 842.5 Indirect research and development expenses: Payroll and benefits 460.4 449.4 944.5 901.1 Lab supplies and other research and development costs 71.5 64.9 130.8 124.9 Occupancy and other operating costs 182.0 158.6 352.9 313.0 Total indirect research and development expenses 713.9 672.9 1,428.2 1,339.0 Clinical manufacturing costs 404.7 337.0 768.9 647.3 Reimbursement of research and development expenses by collaborators (26.2) (42.3) (59.8) (79.7) Total research …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Stockholders' Equity a. Share Repurchase Programs The Company's board of directors has authorized share repurchase programs, including a share repurchase program for up to $3.0 billion of the Company's Common Stock which was authorized in April 2026. The programs have no time limit and can be discontinued at any time. The table below summarizes the shares of the Company's Common Stock that the Company repurchased under its share repurchase programs and the cost of such shares, which were recorded as Treasury Stock. Three Months Ended June 30, Six Months Ended June 30, (In millions) 2026 2025 2026 2025 Number of shares 1.7 1.9 2.7 3.4 Total cost of shares $ 1,164.5 $ 1,069.9 $ 1,967.7 $ 2,122.3 As of June 30, 2026, $2.534 billion remained available for share repurchases under the Company's share repurchase programs. b. Dividends In each of the first and second quarters of 2026, the Company's board of directors declared a quarterly cash dividend of $0.94 per share on its Common Stock and Class A Stock. Each quarterly dividend was paid to the Company's shareholders in the quarter in which the dividend was declared. Additionally, in July 2026, the Company's board of directors declared a cash dividend of $0.94 per share on its Common Stock and Class A Stock. The dividend will be payable to the Company's shareholders in August 2026.

StockholdersEquityNoteDisclosureTextBlock