Summary
Regeneron Pharmaceuticals, Inc. reported a net loss of $29.9 million for the first quarter of 2007, an increase from the $20.4 million net loss in the same period of 2006. Total revenues decreased to $15.8 million from $18.2 million year-over-year, primarily due to lower contract manufacturing revenue and a reduction in the recognition of deferred revenue from the sanofi-aventis collaboration. Operating expenses increased to $49.4 million from $39.9 million, largely driven by higher research and development spending and increased stock-based compensation expenses. The company's cash position and marketable securities remain substantial, with $515.0 million at the end of the quarter. Significant progress was noted in clinical programs, with the company preparing to submit a Biologics License Application for IL-1 Trap (rilonacept) for Cryopyrin-Associated Periodic Syndromes (CAPS) in Q2 2007 and positive preliminary data from the Phase 2 trial of VEGF Trap-Eye in wet Age-Related Macular Degeneration (AMD).
Key Highlights
- 1Net loss widened to $29.9 million in Q1 2007 from $20.4 million in Q1 2006.
- 2Total revenue decreased to $15.8 million from $18.2 million, mainly due to the expiration of the Merck contract manufacturing agreement and lower recognition of deferred revenue.
- 3Research and development expenses increased significantly to $41.2 million, driven by higher clinical trial costs for VEGF Trap-Eye and IL-1 Trap, and increased stock-based compensation.
- 4The company is preparing to submit a BLA for IL-1 Trap (rilonacept) for CAPS in Q2 2007.
- 5Positive preliminary data from the Phase 2 trial of VEGF Trap-Eye in wet AMD showed statistically significant improvements in retinal thickness and visual acuity.
- 6Regeneron entered into new non-exclusive license agreements with AstraZeneca and Astellas Pharma for its VelocImmune technology, receiving significant upfront payments.
- 7Cash and marketable securities remained strong at $515.0 million as of March 31, 2007.