Summary
Regeneron Pharmaceuticals, Inc. (REGN) reported its first quarter 2009 financial results, highlighting increased revenues driven by strong performance in contract research and development, particularly from its collaborations with sanofi-aventis and Bayer HealthCare. The company's net product sales from ARCALYST® showed modest growth. Despite revenue increases, Regeneron reported a widening net loss compared to the prior year, primarily due to significant investments in research and development for its diverse pipeline of product candidates, including aflibercept (VEGF Trap) for oncology and VEGF Trap-Eye for ophthalmologic diseases. Financially, the company maintained a solid cash position, though cash and cash equivalents decreased due to increased capital expenditures and investments in marketable securities. Regeneron continues to invest heavily in its proprietary technology platforms and late-stage clinical programs, anticipating substantial funding requirements in the coming years. The company expects its current capital resources and anticipated collaboration funding to sustain operations through at least 2012.
Key Highlights
- 1Total revenue for the first quarter of 2009 increased to $75.0 million from $56.4 million in the same period of 2008, driven by higher contract research and development revenues from collaborations.
- 2Net loss for the first quarter of 2009 was $17.5 million ($0.22 per share) compared to a net loss of $11.6 million ($0.15 per share) in the first quarter of 2008, reflecting increased R&D spending.
- 3Research and development expenses rose significantly to $82.1 million from $61.3 million year-over-year, largely due to expanded clinical trial expenses and higher headcount supporting collaboration activities.
- 4ARCALYST® net product sales were $3.9 million for the quarter, with deferred revenue related to ARCALYST sales totaling $4.2 million.
- 5Cash and cash equivalents decreased from $247.8 million at year-end 2008 to $199.1 million at the end of the quarter, with net cash used in operating activities at $10.2 million.
- 6Capital expenditures were substantial at $24.7 million for the first three months of 2009, primarily for facility expansions.
- 7The company reiterated its expectation that existing capital resources and collaboration funding will support operations through at least 2012.