10-QPeriod: Q1 FY2020

REGENERON PHARMACEUTICALS, INC. Quarterly Report for Q1 Ended Mar 31, 2020

Filed May 5, 2020For Securities:REGN

Summary

Regeneron Pharmaceuticals, Inc. (REGN) reported strong financial results for the first quarter of 2020, driven by significant growth in net product sales and collaboration revenues. Total revenues increased by approximately 33% year-over-year to $1.83 billion. Net income saw a substantial rise of 35% to $624.6 million, with diluted earnings per share increasing from $3.99 to $5.43. This performance was largely fueled by robust sales of key products like EYLEA and Dupixent, with Dupixent showing a notable 129% increase in global net sales. The company also highlighted its strategic decision to take full responsibility for Praluent's commercialization in the U.S. starting April 1, 2020, along with receiving a royalty on Sanofi's ex-U.S. sales. The company's balance sheet remains strong, with total assets growing to $15.76 billion and cash and marketable securities increasing to $7.24 billion. Operating activities generated $698 million in cash. While research and development expenses increased by 20% to $583.9 million, reflecting ongoing investment in its pipeline, the company maintained robust profitability and liquidity. The report also touches upon the evolving landscape of collaborations, particularly with Sanofi, and acknowledges the potential impact of the COVID-19 pandemic on future operations and clinical trials, while stating no material impact was observed in the current quarter's financials.

Financial Highlights

42 data points
Beta

Revenue

$1.83B

Net Income

$624.60M

34.2% Net Margin

EPS (Diluted)

$5.43

Total Assets

$15.76B

Cash & Equivalents

$2.22B

Free Cash Flow

$698.00M

Financial Statements
Beta
Revenue$1.83B
R&D Expenses$583.90M
SG&A Expenses$367.30M
Operating Expenses$1.13B
Operating Income$700.10M
Interest Expense$6.10M
Net Income$624.60M
EPS (Basic)$5.69
EPS (Diluted)$5.43
Shares Outstanding (Basic)109.80M
Shares Outstanding (Diluted)115.10M

Key Highlights

  • 1Total revenues increased by 33% year-over-year to $1.83 billion.
  • 2Net income rose by 35% to $624.6 million, with diluted EPS up to $5.43.
  • 3EYLEA U.S. net product sales grew by 9% to $1.17 billion.
  • 4Dupixent global net sales surged by 129% to $855.2 million, contributing significantly to collaboration revenue.
  • 5Libtayo U.S. net product sales more than doubled to $61.7 million.
  • 6The company ended the quarter with substantial liquidity, holding $7.24 billion in cash and marketable securities.
  • 7Regeneron is now solely responsible for Praluent's U.S. commercialization and receives a royalty on ex-U.S. sales.

Frequently Asked Questions

Regeneron demonstrated strong financial performance in Q1 2020. Total revenues increased by 33% to $1.83 billion, driven by significant growth in net product sales and collaboration revenues. Net income increased by 35% to $624.6 million, and diluted earnings per share grew to $5.43 from $3.99 in the prior year period.

EYLEA net product sales in the U.S. increased by 9% to $1.17 billion. Dupixent, a key collaboration product, saw its global net sales more than double, increasing by 129% to $855.2 million. Libtayo U.S. net product sales also showed strong growth, more than doubling to $61.7 million.

Effective April 1, 2020, Regeneron assumed sole responsibility for the development and commercialization of Praluent in the United States. Sanofi will handle these activities outside the U.S. and will pay Regeneron a 5% royalty on Sanofi's net product sales of Praluent outside the U.S. until March 31, 2032. The Q1 2020 results represent the last quarter where profits and losses for Praluent were shared under the previous collaboration agreement.

Regeneron maintained a strong financial position, with total assets reaching $15.76 billion. The company's liquidity is robust, with $7.24 billion in cash and marketable securities as of March 31, 2020, an increase from $6.47 billion at the end of 2019. Operating activities provided $698 million in cash during the quarter.