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10-QPeriod: Q3 FY2010

REGENERON PHARMACEUTICALS, INC. Quarterly Report for Q3 Ended Sep 30, 2010

Filed October 28, 2010For Securities:REGN

Summary

Regeneron Pharmaceuticals, Inc. reported a net loss of $33.9 million for the third quarter of 2010, an increase from the $1.0 million net loss in the same period of 2009. This widened loss was primarily driven by a significant increase in research and development expenses. Total revenues for the quarter decreased to $106.0 million from $117.5 million year-over-year, impacted by lower collaboration revenue from Bayer HealthCare, partly offset by increased collaboration revenue from sanofi-aventis, driven by antibody research activities. The company continues to invest heavily in its robust pipeline, with a strong focus on its antibody collaboration with sanofi-aventis and its VEGF Trap-Eye program with Bayer HealthCare. Notably, Regeneron received a significant $165 million upfront payment in August 2010 from Astellas Pharma Inc. related to an extended technology licensing agreement. Despite the net loss, the company's liquidity remains strong, with cash, cash equivalents, and marketable securities totaling $520.4 million as of September 30, 2010, bolstered by a public offering of common stock in October 2010 that raised approximately $174.7 million.

Financial Statements
Beta

Key Highlights

  • 1Net loss increased to $33.9 million for Q3 2010 from $1.0 million in Q3 2009, primarily due to higher R&D expenses.
  • 2Total revenues decreased to $106.0 million in Q3 2010 from $117.5 million in Q3 2009, with collaboration revenue from Bayer HealthCare declining.
  • 3Significant upfront payment of $165 million received from Astellas Pharma Inc. in August 2010 for an extended technology licensing agreement.
  • 4Cash, cash equivalents, and marketable securities stood at $520.4 million as of September 30, 2010, indicating strong liquidity.
  • 5Completed a public offering of common stock in October 2010, raising approximately $174.7 million.
  • 6Continued substantial investment in R&D, particularly in the antibody collaboration with sanofi-aventis and the VEGF Trap-Eye program with Bayer HealthCare.
  • 7ARCALYST® net product sales for the first nine months of 2010 were $20.0 million, including $4.8 million of previously deferred sales, compared to $13.4 million in the same period of 2009.

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