10-QPeriod: Q1 FY2023

REGENERON PHARMACEUTICALS, INC. Quarterly Report for Q1 Ended Mar 31, 2023

Filed May 4, 2023For Securities:REGN

Summary

Regeneron Pharmaceuticals, Inc. reported its first-quarter 2023 financial results, demonstrating revenue growth and a strong balance sheet. Total revenues increased to $3.16 billion, up from $2.97 billion in the same period last year, driven primarily by a significant increase in collaboration revenue, particularly from the Sanofi antibody collaboration. Net product sales saw a modest increase of $29 million to $1.67 billion, with notable growth in Libtayo and Evkeeza offsetting a decline in EYLEA U.S. sales. The company maintained a solid financial position with approximately $3.9 billion in cash and cash equivalents and over $11 billion in marketable securities. Research and development expenses increased significantly, reflecting continued investment in its robust pipeline, including advancements in immunology, inflammation, and oncology programs. The company also continued its share repurchase program, demonstrating a commitment to returning capital to shareholders.

Financial Highlights

45 data points
Beta

Revenue

$3.16B

Net Income

$817.80M

25.9% Net Margin

EPS (Diluted)

$7.17

Total Assets

$30.06B

Cash & Equivalents

$3.92B

Free Cash Flow

$1.37B

Financial Statements
Beta
Revenue$3.16B
R&D Expenses$1.10B
SG&A Expenses$601.10M
Operating Expenses$2.22B
Operating Income$946.70M
Interest Expense$18.00M
Net Income$817.80M
EPS (Basic)$7.64
EPS (Diluted)$7.17
Shares Outstanding (Basic)107.10M
Shares Outstanding (Diluted)114.00M

Key Highlights

  • 1Total revenues increased 6.6% to $3.16 billion for the three months ended March 31, 2023, compared to $2.97 billion for the same period in 2022.
  • 2Net product sales increased 1.8% to $1.67 billion, driven by Libtayo and Evkeeza, partially offset by a decrease in EYLEA U.S. sales.
  • 3Collaboration revenue increased significantly by $1.05 billion, primarily due to higher profit share from the Sanofi antibody collaboration.
  • 4Research and development expenses increased 30.5% to $1.10 billion, reflecting continued pipeline investment.
  • 5Net income decreased by 16% to $817.8 million, resulting in diluted earnings per share of $7.17, down from $8.61 in the prior year.
  • 6The company repurchased approximately $694 million of common stock during the quarter, continuing its capital return strategy.

Frequently Asked Questions

Revenue growth was primarily driven by a substantial increase in collaboration revenue, particularly from Regeneron's share of profits in connection with the commercialization of antibodies under the Sanofi collaboration. This was partially offset by a slight decrease in net product sales, mainly due to lower EYLEA sales in the U.S.

EYLEA net product sales in the U.S. decreased by $83.8 million compared to Q1 2022. However, Libtayo saw significant growth, with U.S. sales up $30.8 million and Rest of World sales reaching $67.2 million. Dupixent also showed strong performance, contributing significantly to the Sanofi collaboration revenue.

Regeneron maintains a strong financial position with $3.9 billion in cash and cash equivalents and over $11 billion in marketable securities as of March 31, 2023. The company also had approximately $750 million available under its revolving credit facility, indicating robust liquidity.

Regeneron significantly increased its investment in research and development, with expenses rising to $1.10 billion for the quarter, up from $843.8 million in the prior year. This reflects ongoing commitment to advancing its pipeline across various therapeutic areas, including immunology, inflammation, and oncology.