Summary
Regeneron Pharmaceuticals, Inc. (REGN) reported its financial results for the second quarter and first half of 2009. The company continues to operate at a net loss, with a loss of $14.9 million for Q2 2009 and $30.3 million for the first half of 2009. Despite the losses, revenues showed a significant increase, driven by higher contract research and development revenue from collaborations with sanofi-aventis and Bayer HealthCare, as well as increased net product sales of ARCALYST®. Research and development expenses also increased, reflecting the company's expanding pipeline and ongoing clinical trials. Key financial developments include a strengthening cash position and strategic shifts in the company's investment portfolio towards higher-quality securities. Regeneron also reported progress in its late-stage clinical programs for aflibercept and VEGF Trap-Eye, with enrollment continuing and initial data expected in 2010. The company noted a significant amendment to its Tarrytown, NY lease agreement and provided an update on its collaboration with Bayer HealthCare for VEGF Trap-Eye, including a recently received $20 million milestone payment.
Financial Highlights
20 data points| Revenue | $90.03M |
| Cost of Revenue | $435K |
| Gross Profit | $89.60M |
| R&D Expenses | $94.23M |
| SG&A Expenses | $11.63M |
| Operating Expenses | $106.30M |
| Operating Income | -$16.27M |
| Interest Expense | $0 |
| Net Income | -$14.94M |
Key Highlights
- 1Net loss for Q2 2009 was $14.9 million ($0.19 per share), an improvement from $18.7 million ($0.24 per share) in Q2 2008.
- 2First half 2009 net loss was $30.3 million ($0.38 per share), largely stable compared to $30.5 million ($0.39 per share) in the first half of 2008.
- 3Total revenues increased significantly, reaching $90.0 million in Q2 2009 (up from $60.7 million in Q2 2008) and $165.0 million in the first half of 2009 (up from $117.0 million in the same period of 2008).
- 4Research and development expenses rose to $94.2 million in Q2 2009 (from $66.8 million in Q2 2008) and $174.5 million in the first half of 2009 (from $128.3 million in the first half of 2008), reflecting pipeline expansion.
- 5Cash, cash equivalents, restricted cash, and marketable securities totaled $466.4 million as of June 30, 2009.
- 6The company initiated patient enrollment in Phase 3 trials for ARCALYST in gout prevention and treatment, and advanced its aflibercept and VEGF Trap-Eye programs with ongoing Phase 3 enrollment.
- 7Regeneron received a $20.0 million milestone payment in July 2009 related to the dosing of the first patient in a Phase 3 trial of VEGF Trap-Eye for Central Retinal Vein Occlusion.