10-QPeriod: Q1 FY2024

REGENERON PHARMACEUTICALS, INC. Quarterly Report for Q1 Ended Mar 31, 2024

Filed May 2, 2024For Securities:REGN

Summary

Regeneron Pharmaceuticals, Inc. reported a slight decrease in total revenues to $3,145.0 million for the first quarter of 2024, down from $3,162.1 million in the same period last year. This was primarily driven by a decrease in EYLEA net product sales in the U.S., offset by strong growth in Dupixent, Libtayo, and Praluent. Net income saw a decline to $722.0 million from $817.8 million, resulting in diluted EPS of $6.27 compared to $7.17 year-over-year. Despite the revenue dip, the company demonstrated solid operational cash flow generation. Investment in research and development increased significantly, reflecting continued commitment to pipeline expansion. The company also continues its share repurchase program, with $1.233 billion remaining authorization as of March 31, 2024, and authorized an additional $3.0 billion in April 2024.

Financial Highlights

46 data points
Beta

Revenue

$3.15B

Net Income

$722.00M

23.0% Net Margin

EPS (Diluted)

$6.27

Total Assets

$34.37B

Cash & Equivalents

$2.60B

Free Cash Flow

$1.51B

Financial Statements
Beta
Revenue$3.15B
R&D Expenses$1.25B
SG&A Expenses$689.00M
Operating Expenses$2.39B
Operating Income$751.40M
Interest Expense$16.10M
Net Income$722.00M
EPS (Basic)$6.70
EPS (Diluted)$6.27
Shares Outstanding (Basic)107.80M
Shares Outstanding (Diluted)115.10M

Key Highlights

  • 1Total revenues for Q1 2024 were $3,145.0 million, a slight decrease from $3,162.1 million in Q1 2023.
  • 2Net income decreased to $722.0 million ($6.27 diluted EPS) from $817.8 million ($7.17 diluted EPS) in the prior year period.
  • 3Net product sales increased by $93.3 million to $1,761.3 million, driven by strong performance in Libtayo (+45%) and Praluent (+38%), partially offset by a decline in EYLEA U.S. sales.
  • 4Collaboration revenue was $1,383.7 million, down from $1,494.1 million, primarily due to lower Roche collaboration revenue (REGEN-COV) and a slight decrease in Bayer collaboration revenue, while Sanofi collaboration revenue increased.
  • 5Research and development expenses increased by $147.2 million to $1,248.4 million, reflecting ongoing investment in pipeline advancement.
  • 6The company generated $1,512.5 million in cash from operating activities, showcasing strong cash flow generation.
  • 7Shareholder returns remain a focus, with $298.0 million in common stock repurchases during the quarter, and $1.233 billion remaining under an authorized repurchase program as of March 31, 2024.

Frequently Asked Questions

Total revenues slightly decreased to $3,145.0 million from $3,162.1 million. This was mainly due to a $232.2 million decrease in U.S. EYLEA net product sales, which was partially offset by significant growth in Libtayo sales globally (+45%) and Praluent sales in the U.S. (+38%). Collaboration revenues also saw a decrease, largely impacted by lower revenue from the Roche collaboration (REGEN-COV).

EYLEA and EYLEA HD U.S. net product sales saw a combined decrease of $32.2 million. However, Dupixent sales performed strongly, with Regeneron's share of collaboration profits increasing due to higher Dupixent sales, contributing to a 24% increase in Dupixent collaboration revenue. Libtayo showed substantial growth, increasing by 45% globally, and Praluent increased by 38% in the U.S.

Regeneron significantly increased its investment in research and development, with expenses rising by $147.2 million to $1,248.4 million. This reflects the company's continued commitment to advancing its broad pipeline of product candidates across various therapeutic areas, including ophthalmology, immunology, oncology, and hematology.

The company continues to execute its share repurchase program, buying back $298.0 million of common stock in the quarter. As of March 31, 2024, $1.233 billion remained available under its share repurchase authorization. In April 2024, an additional $3.0 billion share repurchase program was authorized, indicating a continued focus on returning capital to shareholders.