Companies generally decide to engage in stock splits after their shares have soared to a level that may put them out of reach for many retail investors. A stock split doesn't change the real market value of a company, nor does it alter the value of any investor's holdings, but it does bring down the price of each individual share. Companies do this by issuing more shares to current holders.

Last year, top companies including Amazon and Tesla completed such maneuvers. A stock split itself doesn't spur improved share performance. But it does indicate that a company has been doing well -- so it's worth checking out the companies that choose to split their stock and evaluating whether they are likely to continue to excel.

Of course, it's impossible to predict which company may perform a stock split with 100% accuracy, but a top performer that has been setting new share price highs could make a good candidate. And that's why I'm taking a close look at Regeneron Pharmaceuticals (REGN -4.14%), which is trading at about $830 after touching a recent peak of $847.50. Could this big biotech company be next to announce a split?

Regeneron's biggest product

Regeneron sells nine treatments for an array of conditions such as atopic dermatitis, rheumatoid arthritis, and cancer. But its biggest product is blockbuster Eylea, a treatment for wet age-related macular degeneration and four other eye-related conditions. The product brought in $9.6 billion in revenue last year.

Now here's the really good news. The Food and Drug Administration last month approved a higher-dose version of Eylea for wet age-related macular degeneration and two other eye diseases. This is key because it could extend the revenue potential of Eylea: Lower-dose Eylea is set to lose exclusivity in the U.S. as of next spring, but this new version's patents will protect it through the late 2030s.

Regeneron, of course, now must help doctors transition patients to the high-dose Eylea, which should be an attainable goal since the treatment is longer lasting -- requiring doses every eight to 16 weeks instead of every month. This profile should appeal to patients.

Regeneron also generates significant revenue through its relationship with Sanofi, including their partnership on the atopic dermatitis drug Dupixent. That product's sales soared by 33% in the second quarter, resulting in $944 million in collaboration revenue for Regeneron.

These products have helped the biotech grow its earnings over the long term. The dip in recent times had to do with the peak and then subsequent decline in sales of Regeneron's coronavirus antibody cocktail, but the general trends have been positive.

REGN Net Income (Annual) Chart

REGN Net Income (Annual) data by YCharts.

Revenue drivers of the future

Meanwhile, Regeneron is working on other programs that could boost its revenue down the road. The biotech has more than 40 candidates in clinical development, and eight of them are in phase 3 trials. So Regeneron could launch at least a handful of new products or indications over the next few years.

The company, an early player in the coronavirus treatment and prevention market, also may take part in the post-pandemic market. Regeneron recently announced that the U.S. government will partially fund its work on a next-generation monoclonal antibody therapy to treat and prevent COVID infections. Its most advanced candidate may enter clinical trials this year.

Considering all of this, could Regeneron soon join the stock split list? It's possible. The stock has climbed by more than 100% over the past five years, and is trading at a level that may be out of reach for some retail investors. Yes, they could buy fractional shares, but certain brokerages don't offer them -- and some investors prefer buying full shares. A split could put Regeneron on the radar screens of these potential buyers.

Regeneron also has the products and pipeline necessary to keep its growth going. So the company has plenty of fuel to drive future share gains, which means the stock could take off once again from a new, lower starting point.

The biotech has never performed a stock split before. But there really is no need to wait for it to announce one if you're interested in buying this top biotech stock. Whether you buy the shares today or after any potential stock split, you could win over time thanks to Regeneron's strong products and pipeline.