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).