10-QPeriod: Q3 FY2023

REGENERON PHARMACEUTICALS, INC. Quarterly Report for Q3 Ended Sep 30, 2023

Filed November 2, 2023For Securities:REGN

Summary

Regeneron Pharmaceuticals, Inc. reported a strong third quarter of 2023, driven by robust growth in key products like Dupixent and Libtayo, alongside collaboration revenues. Total revenues increased to $3.36 billion, a 14.5% rise year-over-year, with net income reaching $1.01 billion. The company also saw significant growth in its marketable securities portfolio and continued to execute its share repurchase program, returning capital to shareholders. Despite a slight decline in Eylea U.S. net product sales due to increased competition, the approval of Eylea HD in August 2023 provides a significant opportunity for future growth in the ophthalmology market. The company's R&D expenses increased, reflecting ongoing investment in its diverse pipeline, including advancements in oncology and immunology. Regeneron maintains a solid financial position with substantial cash and marketable securities, providing flexibility for future investments and strategic initiatives.

Financial Highlights

46 data points
Beta

Revenue

$3.36B

Net Income

$1.01B

30.0% Net Margin

EPS (Diluted)

$8.89

Total Assets

$32.16B

Cash & Equivalents

$2.15B

Free Cash Flow

$1.11B

Financial Statements
Beta
Revenue$3.36B
R&D Expenses$1.08B
SG&A Expenses$640.50M
Operating Expenses$2.25B
Operating Income$1.11B
Interest Expense$17.80M
Net Income$1.01B
EPS (Basic)$9.48
EPS (Diluted)$8.89
Shares Outstanding (Basic)106.30M
Shares Outstanding (Diluted)113.40M

Key Highlights

  • 1Total revenues increased by 14.5% to $3.36 billion in Q3 2023 compared to Q3 2022.
  • 2Net income rose to $1.01 billion ($8.89 diluted EPS) in Q3 2023, compared to $1.32 billion ($11.66 diluted EPS) in Q3 2022, reflecting increased revenues offset by higher R&D and SG&A expenses.
  • 3Dupixent revenues grew significantly, with Sanofi collaboration revenue up 50% year-over-year, driven by strong performance in immunology and inflammation.
  • 4EYLEA HD received FDA approval in August 2023, positioning it for future growth in the ophthalmology market, despite a slight decline in Eylea U.S. sales.
  • 5The company's R&D expenses increased by 18% year-over-year to $1.08 billion, reflecting continued investment in its pipeline, including $100 million for an Alnylam development milestone.
  • 6Regeneron repurchased $507.1 million of its common stock in Q3 2023 under its authorized repurchase program, demonstrating a commitment to returning capital to shareholders.
  • 7The company ended the quarter with a strong liquidity position, holding $2.15 billion in cash and cash equivalents and $13.54 billion in marketable securities.

Frequently Asked Questions

Regeneron reported total revenues of $3.36 billion for the three months ended September 30, 2023, an increase of 14.5% compared to $2.94 billion for the same period in 2022. This growth was primarily driven by increased collaboration revenues, particularly from Sanofi, and higher net product sales from products like Dupixent and Libtayo.

Dupixent continues to show strong performance, with Sanofi collaboration revenue up significantly year-over-year. Libtayo also demonstrated robust growth. While Eylea's U.S. net product sales saw a slight decline due to increased competition, the FDA approval of Eylea HD in August 2023 for wAMD, DME, and DR is a positive development that is expected to drive future growth in the ophthalmology market.

Regeneron continues to invest heavily in R&D, with expenses increasing to $1.08 billion in Q3 2023, reflecting ongoing pipeline development, including significant milestones like the $100 million payment to Alnylam. The company also actively manages its capital structure, evidenced by the $507.1 million in share repurchases during the quarter, demonstrating a commitment to shareholder returns while maintaining a strong liquidity position.

Regeneron maintains a very strong financial position. As of September 30, 2023, the company held $2.15 billion in cash and cash equivalents and $13.54 billion in marketable securities. This robust liquidity provides significant financial flexibility for ongoing operations, R&D investments, and potential strategic opportunities.