Summary
Regeneron Pharmaceuticals, Inc. (REGN) reported a significant financial turnaround in 2012, achieving profitability with a net income of $750.3 million, a stark contrast to the net loss of $221.8 million in 2011. This profitability was largely driven by the strong performance of its lead product, EYLEA, which generated $837.9 million in U.S. net sales in 2012, following its launch in late 2011. The company also benefited from a substantial income tax benefit of $335.8 million due to the release of its deferred tax asset valuation allowance, and milestone payments from its collaboration partners, Sanofi and Bayer HealthCare. The company's pipeline remains robust, with 13 product candidates in clinical development, primarily monoclonal antibodies. Key collaborations with Sanofi and Bayer HealthCare are crucial for its ongoing research and commercialization efforts, particularly for EYLEA outside the U.S. and for ZALTRAP. Despite the positive financial results, Regeneron faces ongoing risks related to competition, regulatory approvals for new indications and products, and the potential for adverse outcomes in ongoing patent litigations, notably with Genentech.
Financial Highlights
46 data points| Revenue | $1.38B |
| Cost of Revenue | $83.93M |
| Gross Profit | $1.29B |
| R&D Expenses | $625.55M |
| SG&A Expenses | $210.75M |
| Operating Expenses | $920.76M |
| Operating Income | $457.71M |
| Interest Expense | $45.30M |
| Net Income | $750.27M |
| EPS (Basic) | $7.92 |
| EPS (Diluted) | $6.75 |
| Shares Outstanding (Basic) | 94.69M |
| Shares Outstanding (Diluted) | 115.38M |
Key Highlights
- 1Regeneron achieved profitability in 2012 with a net income of $750.3 million, a significant improvement from a net loss of $221.8 million in 2011.
- 2EYLEA, launched in late 2011, generated substantial net sales of $837.9 million in the U.S. during 2012, becoming a key revenue driver.
- 3The company recorded a significant income tax benefit of $335.8 million in 2012 due to the release of its deferred tax asset valuation allowance.
- 4Regeneron continues to advance a robust pipeline with 13 product candidates in clinical development, many of which are monoclonal antibodies.
- 5Key collaborations with Sanofi (for ZALTRAP and antibodies) and Bayer HealthCare (for EYLEA) are central to the company's development and commercialization strategies.
- 6The company faces significant competition in its key markets, particularly in ophthalmology with products like Lucentis and off-label use of Avastin.
- 7Ongoing patent litigation with Genentech regarding VEGF Trap technology presents a notable risk, impacting both financial resources and potential market exclusivity.