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10-QPeriod: Q2 FY2016

REGENERON PHARMACEUTICALS, INC. Quarterly Report for Q2 Ended Jun 30, 2016

Filed August 4, 2016For Securities:REGN

Summary

Regeneron Pharmaceuticals, Inc. reported strong financial performance for the second quarter and first half of 2016, driven by significant growth in EYLEA net product sales. Total revenues increased year-over-year for both periods, with the first half of 2016 reaching $2.41 billion, up from $1.87 billion in the prior year. Net income also saw a substantial rise, reaching $377.6 million for the first half of 2016, compared to $270.7 million in the same period of 2015. The company's operating expenses increased due to expanded R&D and commercialization activities, including a notable rise in R&D expenses driven by new collaborations and expanded clinical trials. Despite increased spending, the company demonstrated robust top-line growth and improved profitability.

Financial Statements
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Key Highlights

  • 1Total revenues for the first half of 2016 increased by 29% to $2.41 billion, up from $1.87 billion in the first half of 2015.
  • 2Net income for the first half of 2016 grew by 40% to $377.6 million, or $3.24 per diluted share, compared to $270.7 million, or $2.35 per diluted share, in the first half of 2015.
  • 3EYLEA net product sales in the U.S. for the first half of 2016 increased by 35% to $1.61 billion, reflecting strong sales volume growth.
  • 4Sanofi collaboration revenue saw a modest increase for the first half of 2016 to $383.1 million, primarily driven by the immuno-oncology collaboration.
  • 5Bayer collaboration revenue significantly increased by 44% to $371.5 million for the first half of 2016, mainly due to higher net profit from EYLEA sales outside the U.S.
  • 6Research and Development expenses increased by 40% to $1.03 billion for the first half of 2016, reflecting investments in new collaborations (e.g., Intellia) and ongoing clinical programs.
  • 7Selling, general, and administrative expenses increased by 46% to $581.7 million for the first half of 2016, driven by increased commercialization activities and higher headcount.

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