Early Access

10-QPeriod: Q2 FY2010

REGENERON PHARMACEUTICALS, INC. Quarterly Report for Q2 Ended Jun 30, 2010

Filed July 28, 2010For Securities:REGN

Summary

Regeneron Pharmaceuticals, Inc. reported a net loss of $25.5 million ($0.31 per share) for the second quarter ended June 30, 2010, an increase from the $14.9 million loss ($0.19 per share) in the same period of 2009. This widened loss was primarily driven by higher research and development (R&D) expenses, which rose to $124.5 million from $94.2 million year-over-year, largely due to expanded R&D activities related to the company's antibody collaboration with sanofi-aventis. Despite the increased loss, total revenues grew to $115.9 million from $90.0 million, bolstered by strong performance in collaboration revenues, particularly from sanofi-aventis. Net product sales for ARCALYST® increased to $5.2 million from $4.5 million. The company also announced positive results from its PRE-SURGE 1 Phase 3 study for ARCALYST® in gout flare prevention, a significant development for a key pipeline asset. Management believes current capital resources, including expected funding from collaborations, are sufficient to meet operating needs through at least 2013.

Financial Highlights

40 data points
Beta

Revenue

$115.89M

1.0% Gross Margin

Net Income

-$25.47M

-0.2% Net Margin

EPS (Diluted)

$-0.31

Total Assets

$790.64M

Cash & Equivalents

$112.00M

Free Cash Flow

-$11.85M

Financial Statements
Beta
Revenue$115.89M
Cost of Revenue$405K
Gross Profit$115.48M
R&D Expenses$124.53M
SG&A Expenses$14.68M
Operating Expenses$139.61M
Operating Income-$23.72M
Interest Expense$2.34M
Net Income-$25.47M
EPS (Basic)$-0.31

Key Highlights

  • 1Net loss increased to $25.5 million in Q2 2010 from $14.9 million in Q2 2009, primarily due to higher R&D expenses.
  • 2Total revenues grew to $115.9 million in Q2 2010 from $90.0 million in Q2 2009, driven by increased collaboration revenues, especially from sanofi-aventis.
  • 3ARCALYST® net product sales increased to $5.2 million in Q2 2010 from $4.5 million in Q2 2009.
  • 4Positive results from the PRE-SURGE 1 Phase 3 study for ARCALYST® in preventing gout flares were announced.
  • 5Research and Development expenses increased significantly to $124.5 million in Q2 2010 from $94.2 million in Q2 2009, reflecting expanded R&D activities.
  • 6The company extended its VelocImmune® technology license agreement with Astellas Pharma Inc. for a significant upfront payment.
  • 7Regeneron maintains a strong liquidity position, with $380.2 million in cash, cash equivalents, and marketable securities as of June 30, 2010.

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