Summary
Regeneron Pharmaceuticals, Inc. reported strong revenue growth for the nine months ended September 30, 2019, with total revenues reaching $5.7 billion, a 19% increase year-over-year. This growth was primarily driven by robust net product sales, notably EYLEA, which saw a 12% increase globally, and significant gains in Dupixent, Praluent, and Kevzara driven by collaboration revenue. Net income for the period was $1.32 billion, a decrease compared to the prior year, largely due to a substantial $400 million upfront payment made to Alnylam for a new collaboration and increased research and development expenses. Despite the decrease in net income, the company maintained a healthy cash position and a positive cash flow from operations.
Financial Highlights
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Financial Statements
Beta
| Revenue | $1.74B |
| R&D Expenses | $526.00M |
| SG&A Expenses | $304.40M |
| Operating Expenses | $1.01B |
| Operating Income | $738.50M |
| Interest Expense | $7.80M |
| Net Income | $669.60M |
| EPS (Basic) | $6.12 |
| EPS (Diluted) | $5.86 |
| Shares Outstanding (Basic) | 109.40M |
| Shares Outstanding (Diluted) | 114.20M |
Key Highlights
- 1Total revenues increased by 19% to $5.7 billion for the nine months ended September 30, 2019, compared to the same period in 2018.
- 2Net product sales of EYLEA increased by 12% globally, reaching $5.5 billion for the nine months ended September 30, 2019.
- 3Collaboration revenue, particularly from Sanofi and Bayer, showed significant growth, contributing to overall revenue increase.
- 4Net income for the nine months decreased to $1.32 billion from $1.62 billion in the prior year, impacted by increased R&D expenses and a large upfront payment for a new collaboration.
- 5Research and development expenses increased significantly by 49% to $2.35 billion for the nine months ended September 30, 2019, driven by pipeline advancement and the Alnylam collaboration payment.
- 6The company ended the period with a strong cash and marketable securities balance of nearly $6 billion, and generated $1.64 billion in cash from operating activities.
- 7A new $1 billion share repurchase program was authorized in November 2019.
Frequently Asked Questions
Regeneron's revenue growth was primarily driven by strong net product sales, particularly from EYLEA, and significant increases in collaboration revenue from partnerships with Sanofi and Bayer. The company also saw substantial growth in sales of Dupixent and Kevzara.
Net income decreased year-over-year due to a substantial increase in research and development expenses, including a $400 million upfront payment for a new collaboration with Alnylam. Higher operating expenses across R&D and SG&A also contributed to the decline in profitability compared to the previous year.
Regeneron maintains a strong financial position with nearly $6 billion in cash and marketable securities as of September 30, 2019. The company also generated robust operating cash flow of $1.64 billion for the nine months ended September 30, 2019, indicating healthy liquidity.
Regeneron is actively advancing its pipeline, with EYLEA and Dupixent showing strong commercial performance. The company also entered a significant new collaboration with Alnylam Pharmaceuticals for RNAi therapeutics. Legal proceedings related to Praluent and Dupixent are ongoing, with specific updates provided in the legal matters section of the filing.