REGENERON PHARMACEUTICALS, INC. Quarterly Report for Q2 Ended Jun 30, 2012

Summary

Regeneron Pharmaceuticals, Inc. (REGN) reported strong financial performance for the six months ended June 30, 2012, driven by the successful launch and sales of its flagship product, EYLEA®. Total revenues significantly increased to $536.2 million from $220.0 million in the prior year period, primarily due to $317.5 million in EYLEA net product sales. This robust top-line growth translated into a net income of $88.4 million for the first half of 2012, a substantial improvement from a net loss of $106.0 million in the comparable period of 2011. The company's strategic collaborations with Sanofi and Bayer HealthCare continue to be significant revenue drivers, contributing $174.0 million and $21.6 million, respectively, in collaboration revenue. Research and development expenses increased to $286.2 million, reflecting ongoing investment in its extensive pipeline of antibody-based and Trap-based product candidates across various therapeutic areas. The company ended the period with a healthy liquidity position, holding $425.4 million in marketable securities and $172.0 million in cash and cash equivalents.

Key Highlights

• 1Total revenue surged to $536.2 million for the first half of 2012, up from $220.0 million in H1 2011, driven by EYLEA® launch.
• 2EYLEA® generated $317.5 million in net product sales in the first half of 2012, following its November 2011 FDA approval.
• 3The company achieved net income of $88.4 million for H1 2012, a significant turnaround from a net loss of $106.0 million in H1 2011.
• 4Collaboration revenue from Sanofi and Bayer HealthCare remained strong at $174.0 million and $21.6 million respectively for H1 2012.
• 5Research and Development (R&D) expenses increased to $286.2 million in H1 2012, supporting a robust pipeline of product candidates.
• 6Cash, cash equivalents, and marketable securities totaled $597.5 million at June 30, 2012, indicating a strong liquidity position.

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