10-KPeriod: FY2013

REGENERON PHARMACEUTICALS, INC. Annual Report, Year Ended Dec 31, 2013

Filed February 13, 2014For Securities:REGN

Summary

Regeneron Pharmaceuticals, Inc. (REGN) reported strong revenue growth in 2013, primarily driven by its flagship product, EYLEA. Net revenues reached $2.1 billion, a significant increase from $1.38 billion in 2012, showcasing EYLEA's rapid market penetration in ophthalmology for wet AMD and macular edema. The company's product pipeline is robust, with 16 product candidates in clinical development, many of which are being developed in collaboration with major pharmaceutical partners like Sanofi and Bayer HealthCare. Key pipeline candidates include those for rheumatoid arthritis (sarilumab), LDL cholesterol reduction (alirocumab), and various allergic and immune conditions (dupilumab), indicating a diversified future revenue potential beyond EYLEA. While Regeneron achieved profitability in 2012 and maintained it in 2013, significant investment in research and development continues to be a primary focus, underscoring the company's commitment to innovation and long-term growth.

Financial Statements
Beta
Revenue$2.10B
Cost of Revenue$118.05M
Gross Profit$1.99B
R&D Expenses$859.95M
SG&A Expenses$346.39M
Operating Expenses$1.36B
Operating Income$743.05M
Interest Expense$46.44M
Net Income$413.74M
EPS (Basic)$4.23
EPS (Diluted)$3.72
Shares Outstanding (Basic)97.92M
Shares Outstanding (Diluted)111.29M

Key Highlights

  • 1EYLEA continued its strong sales trajectory, with U.S. net product sales reaching $1.41 billion in 2013, representing a substantial increase from $837.9 million in 2012.
  • 2Total revenues for 2013 surged to $2.10 billion, a significant jump from $1.38 billion in 2012, demonstrating robust top-line growth.
  • 3Regeneron reported net income of $424.4 million in 2013, translating to $3.81 per diluted share, indicating continued profitability.
  • 4The company has an extensive pipeline with 16 product candidates in clinical development, including promising antibody-based therapies for major indications like rheumatoid arthritis, cholesterol management, and allergic conditions.
  • 5Collaborations with Sanofi and Bayer HealthCare are crucial for global development and commercialization, providing significant funding and market access for key products like EYLEA and ZALTRAP.
  • 6Investment in research and development remains high, with R&D expenses increasing to $860 million in 2013, reflecting the company's strategy to fuel future growth through innovation.

Frequently Asked Questions

Regeneron's primary revenue driver is EYLEA, an injection for treating neovascular age-related macular degeneration and macular edema. In 2013, EYLEA achieved $1.41 billion in U.S. net sales, a significant increase from $837.9 million in 2012, demonstrating strong market adoption and growth.

Regeneron has a broad pipeline with 16 product candidates. Key antibody-based candidates include sarilumab for rheumatoid arthritis, alirocumab for LDL cholesterol reduction, and dupilumab for allergic conditions like atopic dermatitis and asthma. These candidates are being developed in collaboration with Sanofi and Bayer HealthCare.

Regeneron continues to invest heavily in R&D, with expenses increasing to $860 million in 2013. A significant portion of these costs, particularly for antibody discovery and development, is funded by its collaborators, Sanofi and Bayer HealthCare, through collaboration agreements.

Regeneron achieved profitability in 2012 and continued to be profitable in 2013, reporting net income of $424.4 million ($3.81 per diluted share) in 2013, compared to $750.3 million ($6.75 per diluted share) in 2012. The decrease in net income year-over-year was primarily due to a significant tax benefit recorded in 2012.