Summary
Regeneron Pharmaceuticals, Inc. (REGN) has filed an amendment to its May 7, 2019, 8-K filing primarily to correct previously issued financial guidance for the full year 2019. The amendment specifically revises the "GAAP Unreimbursed R&D" and "GAAP SG&A" figures, along with their corresponding GAAP-to-non-GAAP reconciliations. Key changes include an increase in the projected GAAP Unreimbursed R&D expense range from $1.855 billion–$2.000 billion to $2.280 billion–$2.400 billion. The GAAP SG&A guidance range has been slightly adjusted to $1.695 billion–$1.800 billion, from the previously stated $1.700 billion–$1.830 billion. Notably, the non-GAAP guidance for both R&D and SG&A remains unchanged, indicating that the revisions are attributable to items that are excluded in the non-GAAP calculations, such as an upfront payment related to license and collaboration agreements and litigation contingencies. The company also updated its GAAP effective tax rate guidance downwards.
Key Highlights
- 1Amendment filed to correct 2019 financial guidance for GAAP Unreimbursed R&D and GAAP SG&A.
- 2GAAP Unreimbursed R&D guidance increased significantly to $2.280 billion–$2.400 billion from $1.855 billion–$2.000 billion.
- 3GAAP SG&A guidance revised to $1.695 billion–$1.800 billion from $1.700 billion–$1.830 billion.
- 4Non-GAAP Unreimbursed R&D and Non-GAAP SG&A guidance remain unchanged, indicating revisions are due to non-GAAP reconciling items.
- 5The reconciliation for GAAP Unreimbursed R&D now includes an additional $400 million adjustment for an upfront payment related to license and collaboration agreements.
- 6GAAP effective tax rate guidance revised downwards to 11%–13% from 14%–16%.
- 7Capital expenditure guidance remains consistent at $410 million–$475 million.