Summary
Regeneron Pharmaceuticals, Inc. (REGN) reported strong financial performance for the second quarter and first half of 2018. Total revenues increased by 9.4% year-over-year in the second quarter to $1.61 billion and by 11.8% in the first half to $3.12 billion. This growth was primarily driven by a 7.9% increase in U.S. net product sales of EYLEA and significant collaboration revenue from Bayer, which rose by 25.1% in the second quarter. Net income saw substantial growth, increasing by 42.3% in the second quarter to $551.4 million ($4.82 per diluted share) and by 61.7% in the first half to $1.03 billion ($8.97 per diluted share). This impressive profitability was supported by effective cost management and a lower effective tax rate following the Tax Cuts and Jobs Act. The company also highlighted progress across its product pipeline, including positive developments for Dupixent in adolescent patients and cemiplimab for advanced cutaneous squamous cell carcinoma, reinforcing its position as a leading biopharmaceutical innovator.
Financial Highlights
42 data points| Revenue | $1.61B |
| R&D Expenses | $529.30M |
| SG&A Expenses | $364.80M |
| Operating Expenses | $985.80M |
| Operating Income | $622.20M |
| Interest Expense | $6.90M |
| Net Income | $551.40M |
| EPS (Basic) | $5.12 |
| EPS (Diluted) | $4.82 |
| Shares Outstanding (Basic) | 107.80M |
| Shares Outstanding (Diluted) | 114.50M |
Key Highlights
- 1Total revenues for Q2 2018 increased 9.4% to $1.61 billion, and for the first half of 2018 increased 11.8% to $3.12 billion, compared to the prior year periods.
- 2Net income for Q2 2018 surged 42.3% to $551.4 million, or $4.82 per diluted share, and for the first half of 2018 rose 61.7% to $1.03 billion, or $8.97 per diluted share.
- 3EYLEA net product sales in the U.S. increased 7.9% to $992.0 million in Q2 2018 and 11.4% to $1.98 billion in the first half of 2018, driven by higher sales volume.
- 4Collaboration revenue from Bayer increased significantly by 25.1% in Q2 2018 to $262.9 million and by 26.3% in the first half to $510.8 million, primarily related to EYLEA outside the U.S.
- 5Research and development expenses saw a modest increase of 3.8% in Q2 2018 to $529.3 million, while selling, general, and administrative expenses increased by 18.9% to $364.8 million.
- 6The company adopted ASC 606, Revenue from Contracts with Customers, in Q1 2018, which impacted the timing of revenue recognition for collaboration agreements.
- 7Positive clinical trial updates were noted for Dupixent (atopic dermatitis in adolescents) and cemiplimab (advanced cutaneous squamous cell carcinoma), indicating strong pipeline progress.