10-QPeriod: Q1 FY2013

REGENERON PHARMACEUTICALS, INC. Quarterly Report for Q1 Ended Mar 31, 2013

Filed May 3, 2013For Securities:REGN

Summary

Regeneron Pharmaceuticals, Inc. (REGN) reported strong first-quarter 2013 financial results, demonstrating significant growth and improved profitability. Total revenues surged to $439.7 million, a substantial increase from $231.8 million in the prior year's quarter, primarily driven by the robust performance of EYLEA. Net income rose dramatically to $98.9 million, or $0.90 per diluted share, from $11.7 million, or $0.11 per diluted share, in Q1 2012, showcasing the company's expanding profitability. The company's flagship product, EYLEA, continues to be the primary growth engine, with U.S. net product sales reaching $313.9 million, more than doubling from $123.5 million in the same period last year. Collaboration revenues also saw a healthy increase, contributing $114.2 million, bolstered by contributions from Sanofi and Bayer HealthCare. These positive financial trends reflect the successful commercialization of key products and the ongoing advancement of Regeneron's diverse pipeline.

Financial Highlights

46 data points
Beta

Revenue

$439.66M

93.6% Gross Margin

Net Income

$98.87M

22.5% Net Margin

EPS (Diluted)

$0.90

Total Assets

$2.28B

Cash & Equivalents

$180.36M

Free Cash Flow

$86.25M

Financial Statements
Beta
Revenue$439.66M
Cost of Revenue$28.02M
Gross Profit$411.64M
R&D Expenses$180.30M
SG&A Expenses$77.26M
Operating Expenses$286.61M
Operating Income$153.05M
Interest Expense$11.68M
Net Income$98.87M
EPS (Basic)$1.02
EPS (Diluted)$0.90
Shares Outstanding (Basic)96.88M
Shares Outstanding (Diluted)109.37M

Key Highlights

  • 1Total revenues increased significantly by 89.6% year-over-year to $439.7 million in Q1 2013.
  • 2Net income surged by 747.8% year-over-year to $98.9 million.
  • 3Diluted earnings per share (EPS) grew to $0.90 from $0.11 in the prior year's quarter.
  • 4EYLEA net product sales in the U.S. more than doubled to $313.9 million, highlighting strong market adoption.
  • 5Collaboration revenue increased to $114.2 million, driven by Sanofi and Bayer HealthCare partnerships.
  • 6Research and development expenses rose to $180.3 million, reflecting continued investment in the pipeline.
  • 7The company ended the quarter with a strong liquidity position, with $662.8 million in cash, cash equivalents, and marketable securities.

Frequently Asked Questions

The primary driver of Regeneron's revenue growth in Q1 2013 was the significant increase in net product sales of EYLEA in the United States. EYLEA sales more than doubled year-over-year, demonstrating strong market traction and demand.

Regeneron's profitability saw a dramatic improvement. Net income increased by 747.8% to $98.9 million in Q1 2013, and diluted earnings per share rose to $0.90 from $0.11 in Q1 2012. This surge in profitability is attributed to the substantial revenue growth and effective cost management.

Regeneron continues to benefit from its collaborations with Sanofi and Bayer HealthCare. Collaboration revenue increased to $114.2 million, with Sanofi contributing significantly through ZALTRAP and antibody development, and Bayer HealthCare through EYLEA outside the U.S. These partnerships remain crucial for the development and commercialization of key products.

Regeneron is maintaining a strong commitment to research and development, with R&D expenses increasing to $180.3 million in Q1 2013, up from $138.9 million in the prior year. This investment reflects the company's focus on advancing its pipeline of innovative therapies.