REGENERON PHARMACEUTICALS, INC. Quarterly Report for Q1 Ended Mar 31, 2019

Summary

Regeneron Pharmaceuticals, Inc. reported strong revenue growth for the first quarter of 2019, with total revenues reaching $1.71 billion, a 13.2% increase compared to the prior year period. This growth was primarily driven by a significant increase in U.S. net product sales of EYLEA and strong performance in collaboration revenues from Sanofi and Bayer. Net income for the quarter was $461.1 million, or $3.99 per diluted share, showing a slight decrease from the previous year's $478.0 million, or $4.16 per diluted share, impacted by higher operating expenses, particularly in research and development and selling, general, and administrative functions. The company continues to invest heavily in its robust pipeline, with R&D expenses increasing by approximately 28.7% year-over-year. Despite increased operating costs, Regeneron demonstrated solid operational cash flow generation, with cash flow from operating activities increasing significantly to $897.0 million. The company also maintained a strong liquidity position with $5.57 billion in financial assets at the end of the quarter, including cash and marketable securities.

Key Highlights

• 1Total revenues increased by 13.2% to $1.71 billion in Q1 2019.
• 2U.S. Net product sales of EYLEA grew by 9.1% to $1.07 billion.
• 3Sanofi and Bayer collaboration revenues collectively increased by 15.4% to $522.6 million.
• 4Research and development expenses increased by 28.7% to $641.8 million.
• 5Selling, general, and administrative expenses increased by 24.2% to $410.8 million.
• 6Net income decreased slightly to $461.1 million from $478.0 million in the prior year.
• 7Diluted earnings per share decreased to $3.99 from $4.16.
• 8Cash flow from operating activities increased significantly by 45.2% to $897.0 million.

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