REGENERON PHARMACEUTICALS, INC. Annual Report, Year Ended Dec 31, 2006

Regeneron Pharmaceuticals, Inc. reported a net loss of $102.3 million for the fiscal year ended December 31, 2006, an increase from the previous year's loss of $95.4 million. Total revenues decreased slightly to $63.4 million from $66.2 million in 2005, primarily due to the expiration of contract manufacturing agreements. The company continues to invest heavily in research and development, with a focus on three key programs: IL-1 Trap for inflammatory diseases, VEGF Trap for oncology (in collaboration with sanofi-aventis), and VEGF Trap-Eye for eye diseases (in collaboration with Bayer HealthCare). The company's financial position remains stable, with approximately $522.9 million in cash, cash equivalents, and marketable securities at the end of 2006, bolstered by a successful public offering in November 2006. However, Regeneron faces significant risks, including the high cost and uncertainty of drug development, potential competition, and the need for future financing. The company has no products currently approved for sale, and its strategy hinges on advancing its pipeline candidates through clinical trials and regulatory approvals. Key developments during 2006 include positive Phase 3 data for IL-1 Trap in Cryopyrin-Associated Periodic Syndromes (CAPS), with a BLA submission anticipated in Q2 2007. Significant progress was also made in the VEGF Trap programs, with Phase 2 studies ongoing and plans for Phase 3 trials initiated. The company also entered into a collaboration with Bayer HealthCare for the VEGF Trap-Eye, receiving a $75 million upfront payment. Regeneron's proprietary VelocImmune technology is also being leveraged for future antibody candidates.