Summary
Regeneron Pharmaceuticals, Inc. (REGN) reported a significant shift from a net loss in Q1 2011 to a net income of $11.7 million ($0.11/diluted share) in Q1 2012. This turnaround was primarily driven by the launch of EYLEA® (aflibercept) Injection for wet age-related macular degeneration (AMD) in November 2011, which generated $123.5 million in net product sales during the quarter. Total revenues surged to $231.8 million, up from $112.2 million in the prior year's quarter, largely due to EYLEA's performance and sustained collaboration revenues from Sanofi and Bayer HealthCare. While R&D expenses increased to $138.9 million, reflecting ongoing clinical development, Selling, General, and Administrative expenses also rose significantly to $58.4 million, driven by EYLEA's commercialization efforts. Despite increased operating expenses, the strong product sales of EYLEA have propelled the company to profitability. Regeneron continues to advance a robust pipeline with 13 product candidates in clinical development, including EYLEA for other eye diseases, ZALTRAP® for oncology in collaboration with Sanofi, and ARCALYST® for gout flares.
Financial Highlights
44 data points| Revenue | $231.79M |
| Cost of Revenue | $12.30M |
| Gross Profit | $219.49M |
| R&D Expenses | $138.86M |
| SG&A Expenses | $58.43M |
| Operating Expenses | $209.59M |
| Operating Income | $22.20M |
| Interest Expense | $11.16M |
| Net Income | $11.65M |
| EPS (Basic) | $0.12 |
| EPS (Diluted) | $0.11 |
| Shares Outstanding (Basic) | 93.45M |
| Shares Outstanding (Diluted) | 107.73M |
Key Highlights
- 1Net income turned positive at $11.7 million for Q1 2012, compared to a net loss of $43.4 million in Q1 2011.
- 2EYLEA® net product sales reached $123.5 million in its first full quarter post-launch, significantly driving revenue growth.
- 3Total revenues increased to $231.8 million from $112.2 million year-over-year, primarily due to EYLEA sales.
- 4Research and Development expenses rose to $138.9 million, reflecting continued investment in a broad pipeline of 13 product candidates.
- 5Selling, General, and Administrative expenses increased to $58.4 million, largely due to commercialization efforts for EYLEA.
- 6Cash, cash equivalents, and marketable securities stood at $695.2 million, though operating activities used $87.0 million in cash, partly due to a significant increase in accounts receivable related to EYLEA sales.
- 7Regeneron continues to advance its 'Trap' and antibody-based clinical programs, with regulatory decisions expected for ZALTRAP and ARCALYST in the coming months.