8-KEarnings & ResultsExhibits & Filings

REGENERON PHARMACEUTICALS, INC. 8-K Report, Financial Results (Apr 28, 2005)

Filed April 28, 2005For Securities:REGN

Summary

Regeneron Pharmaceuticals, Inc. filed an 8-K on April 28, 2005, to report its financial and operating results for the first quarter ended March 31, 2005. A key development noted is the company's adoption of Statement of Financial Accounting Standards No. 123 (SFAS No. 123) effective January 1, 2005. This adoption requires the recognition of non-cash compensation expense related to employee stock option awards in operating expenses. Consequently, the company is presenting certain financial measures on a "pro forma" basis, excluding this stock option expense, to provide greater transparency and a more comparable view of operating results between periods. Management believes these non-GAAP measures offer useful insights into operational trends and facilitate internal financial planning.

Key Highlights

  • 1Regeneron announced Q1 2005 financial and operating results on April 28, 2005.
  • 2Effective January 1, 2005, the company adopted SFAS No. 123, requiring recognition of non-cash stock option expense.
  • 3Prior period operating results have not been restated for stock option expense.
  • 4The company is presenting non-GAAP financial measures, including pro forma net income and pro forma EPS, excluding stock option expense.
  • 5Certain operating expenses (R&D, G&A, contract manufacturing) are also presented excluding stock option expense on a pro forma basis.
  • 6Management believes these non-GAAP measures enhance transparency and comparability of operating results.
  • 7The press release containing these results is attached as Exhibit 99(a).

Frequently Asked Questions

This 8-K filing is to announce Regeneron Pharmaceuticals, Inc.'s financial and operating results for the first quarter ended March 31, 2005, and to inform investors about changes in accounting for stock option expenses.

Adopting SFAS No. 123 requires Regeneron to recognize non-cash compensation expense related to employee stock options in its operating expenses starting January 1, 2005. This expense was not previously recorded in operating results.

Regeneron is using pro forma financial measures (like pro forma net income and EPS) that exclude the impact of stock option expense. Management believes these non-GAAP measures provide greater transparency and a more useful basis for comparing operating results between periods, as they reflect the company's performance without the effect of this new accounting standard.

No, prior period operating results have not been restated to reflect the stock option expense under SFAS No. 123.