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10-QPeriod: Q3 FY2014

REGENERON PHARMACEUTICALS, INC. Quarterly Report for Q3 Ended Sep 30, 2014

Filed November 4, 2014For Securities:REGN

Summary

Regeneron Pharmaceuticals, Inc. reported solid financial results for the nine months ended September 30, 2014, with total revenues reaching $2.02 billion, a significant increase from $1.49 billion in the same period of 2013. This growth was primarily driven by strong net product sales, largely from EYLEA, which saw a substantial increase in sales volume. Collaboration revenue from Sanofi and Bayer HealthCare also contributed positively, reflecting progress in key development programs and expanded EYLEA indications. The company's net income for the period was $237.9 million, down from $327.6 million in the prior year, largely due to a significant increase in research and development (R&D) expenses, which climbed to $919.6 million from $591.8 million, reflecting substantial investments in late-stage clinical programs like alirocumab and dupilumab, and a one-time charge related to a priority review voucher purchase. Financially, Regeneron strengthened its balance sheet with cash, cash equivalents, and marketable securities increasing to $1.49 billion. The company also successfully managed its debt, converting a portion of its convertible senior notes. Despite increased R&D spending and a one-time charge impacting profitability year-over-year, the overall financial health appears robust, supported by strong product sales and strategic collaborations. The company remains focused on advancing its broad pipeline, with significant progress noted across its antibody-based clinical programs and trap-based programs, positioning it for potential future growth.

Financial Statements
Beta
Revenue$725.79M
Cost of Revenue$33.66M
Gross Profit$692.13M
R&D Expenses$337.73M
SG&A Expenses$144.00M
Operating Expenses$537.32M
Operating Income$188.46M
Interest Expense$9.23M
Net Income$83.38M
EPS (Basic)$0.83
EPS (Diluted)$0.73
Shares Outstanding (Basic)100.80M
Shares Outstanding (Diluted)117.42M

Key Highlights

  • 1Total revenues increased to $2.02 billion for the nine months ended September 30, 2014, up from $1.49 billion in the same period of 2013, driven by strong net product sales.
  • 2EYLEA net product sales in the U.S. rose to $1.22 billion for the first nine months of 2014, up from $1.01 billion in 2013, indicating robust market adoption and expanded indications.
  • 3Net income for the nine months ended September 30, 2014, was $237.9 million, a decrease from $327.6 million in 2013, primarily due to a significant increase in R&D expenses and a priority review voucher purchase.
  • 4Research and Development (R&D) expenses increased significantly to $919.6 million for the first nine months of 2014, from $591.8 million in 2013, reflecting investments in clinical trials for key antibody candidates like alirocumab and dupilumab.
  • 5Cash, cash equivalents, and marketable securities increased to $1.49 billion as of September 30, 2014, up from $1.08 billion at December 31, 2013, demonstrating a healthy liquidity position.
  • 6Significant progress was reported across the antibody-based clinical programs, with continued positive results and enrollment in late-stage trials for alirocumab (PCSK9 antibody) and dupilumab (IL-4R antibody).

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