10-QPeriod: Q1 FY2001

REGENERON PHARMACEUTICALS, INC. Quarterly Report for Q1 Ended Mar 31, 2001

Filed May 11, 2001For Securities:REGN

Summary

Regeneron Pharmaceuticals, Inc. (REGN) reported its first quarter results for the period ending March 31, 2001. The company's revenue decreased to $6.3 million from $10.6 million in the prior year, primarily due to a drop in contract research and development revenue from collaborations, although contract manufacturing revenue saw an increase. Operating expenses rose to $21.0 million from $17.7 million, driven by higher research and development spending, which represented 80% of total operating expenses. The company posted a net loss of $13.0 million ($0.35 per share) for the quarter, an increase from the $8.8 million net loss ($0.28 per share) in the same period last year. Despite the growing loss, Regeneron significantly bolstered its cash position, ending the quarter with $183.6 million in cash and cash equivalents, up from $31.0 million at the end of 2000, largely due to a successful public stock offering.

Key Highlights

  • 1Revenue declined to $6.3 million in Q1 2001 from $10.6 million in Q1 2000, mainly due to decreased contract R&D revenue.
  • 2Operating expenses increased to $21.0 million from $17.7 million, with R&D spending driving the rise and comprising 80% of total expenses.
  • 3Net loss widened to $13.0 million ($0.35 per share) from $8.8 million ($0.28 per share) year-over-year.
  • 4Cash and cash equivalents significantly increased to $183.6 million as of March 31, 2001, up from $31.0 million at December 31, 2000.
  • 5A public offering in March 2001 raised approximately $153.7 million in net proceeds.
  • 6The company is advancing its pipeline with key drug candidates like AXOKINE (obesity) and various Cytokine Traps in preclinical and early-stage clinical trials.
  • 7The Amgen-Regeneron Partners collaboration discontinued development of BDNF for ALS but continues with NT-3.

Frequently Asked Questions

The primary driver for the revenue decrease was a significant drop in contract research and development revenue, particularly from collaborations with Procter & Gamble and Amgen-Regeneron Partners, which was partially offset by an increase in contract manufacturing revenue.

Regeneron significantly strengthened its financial position by successfully completing a public stock offering in March 2001, which raised approximately $153.7 million in net proceeds. This resulted in a substantial increase in cash and cash equivalents to $183.6 million by the end of the quarter.

Regeneron is actively developing several promising drug candidates. AXOKINE for obesity is moving towards Phase III trials, while candidates like the IL-1 Trap, IL-4/IL-13 Trap, and VEGF Trap are in early-stage clinical or late-stage preclinical development. The Amgen-Regeneron Partners collaboration is continuing with NT-3 development after discontinuing BDNF for ALS.

Regeneron expects to continue incurring substantial funding requirements for research and development, manufacturing, and general corporate purposes. The company believes its current capital resources are sufficient to meet operating needs through at least 2002, but anticipates the need for additional funding through future collaborations or equity financing.