Summary
Regeneron Pharmaceuticals, Inc. (REGN) filed an 8-K on November 3, 2005, to announce its financial and operating results for the third quarter and the first nine months of 2005. A key development highlighted is the company's adoption of Statement of Financial Accounting Standards No. 123 (SFAS No. 123) effective January 1, 2005, which requires the recognition of non-cash compensation expense related to employee stock option awards in operating expenses. Prior periods were not restated. The company also presented certain non-GAAP financial measures, such as pro forma net loss and various expense categories (R&D, G&A, contract manufacturing), exclusive of this stock option expense. Management believes these non-GAAP measures offer greater transparency and a more useful basis for comparing operating results, especially for internal planning and operational assessments. Investors should pay close attention to the reconciliation tables provided within the press release to understand the differences between GAAP and non-GAAP reporting.
Key Highlights
- 1Regeneron announced Q3 and nine-month 2005 financial and operating results on November 3, 2005.
- 2The company adopted SFAS No. 123 effective January 1, 2005, requiring non-cash stock option compensation expense to be recognized.
- 3Prior period operating results were not restated for the adoption of SFAS No. 123.
- 4Regeneron is presenting non-GAAP financial measures, excluding stock option expense, for better transparency and comparability.
- 5Non-GAAP measures include pro forma net loss and R&D, G&A, and contract manufacturing expenses.
- 6Management believes non-GAAP measures provide a more useful basis for internal analysis and comparison.
- 7A press release dated November 3, 2005, containing these results and reconciliations, is filed as Exhibit 99(a).