REGENERON PHARMACEUTICALS, INC. Quarterly Report for Q3 Ended Sep 30, 2019

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.

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.

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