Early Access

10-KPeriod: FY2019

REGENERON PHARMACEUTICALS, INC. Annual Report, Year Ended Dec 31, 2019

Filed February 7, 2020For Securities:REGN

Summary

Regeneron Pharmaceuticals, Inc. (REGN) reported solid revenue growth in 2019, driven by strong performance in its key products, particularly EYLEA and Dupixent. Total revenues reached $7.86 billion, a significant increase from $6.71 billion in 2018, demonstrating continued market acceptance and expansion of its therapeutic offerings. Net income, however, saw a decrease to $2.12 billion from $2.44 billion in the prior year, primarily due to increased research and development (R&D) investments, including a substantial upfront payment for a new collaboration. The company continues to invest heavily in its robust pipeline, with 22 product candidates in clinical development across various therapeutic areas. Significant R&D expenditure, rising from $2.19 billion in 2018 to $3.04 billion in 2019, underscores Regeneron's commitment to innovation and future growth. Key collaborations with Sanofi and Bayer remain crucial for its commercial strategies, contributing significantly to revenue and providing global reach for its products. The company ended the year with a strong cash position, providing financial flexibility for ongoing development and strategic initiatives.

Financial Statements
Beta
Revenue$6.56B
Cost of Revenue$402.80M
Gross Profit$6.15B
R&D Expenses$2.45B
SG&A Expenses$1.34B
Operating Expenses$4.35B
Operating Income$2.21B
Interest Expense$30.20M
Net Income$2.12B
EPS (Basic)$19.38
EPS (Diluted)$18.46
Shares Outstanding (Basic)109.20M
Shares Outstanding (Diluted)114.60M

Key Highlights

  • 1Total revenues increased by 17.2% to $7.86 billion in 2019, up from $6.71 billion in 2018.
  • 2Net income decreased by 13.5% to $2.12 billion in 2019, compared to $2.44 billion in 2018, largely due to increased R&D spending.
  • 3EYLEA net product sales in the U.S. grew to $4.64 billion in 2019, a 13.5% increase year-over-year.
  • 4Collaboration revenue with Sanofi and Bayer increased by 17.1% to $2.62 billion in 2019, driven by strong performance of co-developed products.
  • 5Research and development expenses significantly increased by 38.9% to $3.04 billion in 2019, reflecting ongoing investment in pipeline development and a $400 million upfront payment for a new collaboration.
  • 6The company ended 2019 with a strong cash and marketable securities position of $6.47 billion, providing ample liquidity for future investments.
  • 7Regeneron is undergoing a restructuring of its antibody collaboration with Sanofi for Kevzara and Praluent, expected to finalize in Q1 2020.

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