Summary
Regeneron Pharmaceuticals, Inc. (REGN) reported its financial results for the third quarter and the first nine months ended September 30, 2009. The company's net loss narrowed significantly compared to the prior year, primarily driven by increased contract research and development revenue, particularly from collaborations with sanofi-aventis and Bayer HealthCare. A notable contributor to revenue was a $20 million research progress payment received from Bayer HealthCare. ARCALYST® (rilonacept) net product sales also showed an increase. Research and development expenses increased year-over-year, reflecting expanded R&D activities, notably in the antibody collaboration with sanofi-aventis. The company continues to invest heavily in its pipeline, with ongoing Phase 3 trials for aflibercept in oncology and VEGF Trap-Eye in ophthalmology. Significant updates on clinical trial progress were provided, including enrollment statuses and expected data releases. The company's liquidity remains strong, with substantial cash, cash equivalents, and marketable securities, and management anticipates sufficient capital to fund operations through at least 2012.
Financial Highlights
20 data points| Revenue | $117.45M |
| Cost of Revenue | $472K |
| Gross Profit | $116.98M |
| R&D Expenses | $105.43M |
| SG&A Expenses | $12.84M |
| Operating Expenses | $118.75M |
| Operating Income | -$1.29M |
| Interest Expense | $581K |
| Net Income | -$1.01M |
Key Highlights
- 1Net loss decreased substantially to $1.0 million ($0.01/share) for Q3 2009 from $19.1 million ($0.24/share) for Q3 2008, and to $31.3 million ($0.39/share) for the nine months ended Sept 30, 2009, from $49.6 million ($0.63/share) for the same period in 2008.
- 2Total revenues increased to $117.5 million for Q3 2009 from $65.6 million for Q3 2008, and to $282.5 million for the nine months ended Sept 30, 2009, from $182.6 million for the same period in 2008, largely driven by higher contract R&D revenue from collaborations and a $20 million research progress payment from Bayer HealthCare.
- 3ARCALYST® (rilonacept) net product sales increased to $5.0 million for Q3 2009 from $2.7 million for Q3 2008, and to $13.4 million for the nine months ended Sept 30, 2009, from $2.7 million for the same period in 2008.
- 4Research and development expenses increased to $105.4 million for Q3 2009 from $72.1 million for Q3 2008, and to $280.0 million for the nine months ended Sept 30, 2009, from $200.3 million for the same period in 2008, reflecting expanded R&D activities, particularly in the antibody collaboration with sanofi-aventis.
- 5The company's cash, cash equivalents, restricted cash, and marketable securities totaled $438.6 million at September 30, 2009, providing a strong liquidity position.
- 6Significant progress was reported in late-stage clinical trials for aflibercept (VEGF Trap) in oncology and VEGF Trap-Eye in ophthalmology, with enrollment targets being met or exceeded.
- 7A non-cash accounting adjustment related to lease accounting for facilities in Tarrytown, New York, was made, increasing property, plant, and equipment and lease obligations, but not impacting cash flows or business operations.