Regeneron Pharmaceuticals (REGN) Adjusts Course Amid Mixed Results in Melanoma Drug Trials

Regeneron Pharmaceuticals (REGN) Adjusts Course Amid Mixed Results in Melanoma Drug Trials

Thu, August 27, 2026 at 3:43 PM GMT+3 3 min read

• ^GSPC -0.02%
• REGN -2.25%

Sound Shore Management, an investment management firm, has released its investor letter for the second quarter of 2026. The letter can be downloaded here. The Sound Shore Fund's Investor Class (SSHFX) and Institutional Class (SSHVX) rose 10.48% and 10.58% in the second quarter of 2026, trailing the Russell 1000 Value Index's 13.87% and the S&P 500's 15.20% returns. Over three years, SSHFX and SSHVX posted annualized gains of 19.41% and 19.66%, outperforming the Russell Value (17.79%) but underperforming the S&P 500 (20.61%). The powerful rebound of stocks in the quarter was driven by strong performances in AI and semiconductor sectors, amidst easing inflation fears and a stable labor market. The portfolio also benefited from the AI wave in the second quarter. The ongoing AI revolution is creating significant investment opportunities in multiple sectors, and Sound Shore remains committed to long-term assessments of a company's earning power, targeting stocks with durable management strategies. Also, check the fund's top five holdings to see its best picks in 2026.

In its Q2 2026 investor letter, Sound Shore Management highlighted Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN). Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is a biotechnology company that develops and commercializes medicines to treat various diseases. On August 26, 2026, Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) closed at $814.79 per share, reflecting a market capitalization of $83.89 billion. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) posted a one‑month return of 10.35%, while its shares gained 40.58% over the past 52 weeks.

Sound Shore Management stated the following regarding Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) in its Q2 2026 investor letter:

"Detractors for the period included some of our energy names which gave back a portion of their YTD gains as they retreated with energy prices. Our energy holdings have low-cost operations and strong balance sheets to better manage the volatile nature of the industry. Similarly, biopharmaceutical company Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) returned a portion of its earlier advance after announcing mixed clinical trial results for its melanoma drug. We initiated our position when the stock was trading at a very attractive 13 times earnings with an 8% free cash flow yield. The company has a fortress balance sheet and a number of pipeline drugs that show great promise that we don't think we are paying for at this valuation."

Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 63 hedge fund portfolios held Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) at the end of the first quarter, which was 72 in the previous quarter. While we acknowledge the potential of Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) and shared the list of stocks surpassing earnings expectations. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.