REGENERON PHARMACEUTICALS, INC. Segments Disclosure
| 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 | $ | 5,132.0 | $ | 4,439.0 | ||||||||||||||
(a) Direct research and development expenses are comprised primarily of costs paid to third parties for clinical and product development activities, and the portion of research and development expenses incurred by our collaborators that we are obligated to reimburse | ||||||||||||||||||||
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.