Biotech giant Regeneron Pharmaceuticals (REGN 0.32%) released its second-quarter earnings on Thursday, August 4th, before trading started for the day. The company's shares wound up falling by around 3.5% in the trading sessions that followed the release. Let's dig into the company's results to figure out what spooked the market, and check in to make sure the company's long-term growth story is still on track.
Regeneron Pharmaceuticals' Q2 -- The raw numbers
|
Q2 2016 |
Q2 2015 |
Change % |
Eylea U.S. sales |
$831 million |
$655 million |
27% |
Total revenue |
$1.2 billion |
$999 million |
21% |
Non-GAAP net income |
$329 million |
$265 million |
24% |
Non-GAAP EPS |
$2.82 |
$2.27 |
24% |
What management had to say
"In the first half of this year, EYLEA continued to demonstrate strong sales growth, and Praluent sales made steady progress as healthcare providers become more familiar with this new therapeutic class and learn to navigate payer utilization management criteria. In the second half of the year, for sarilumab in rheumatoid arthritis, we look forward to the upcoming U.S. regulatory decision and potential launch. We also recently completed a U.S. regulatory submission for dupilumab for the treatment of atopic dermatitis and are working to bring this breakthrough therapy to patients as soon as possible."
Looking ahead
Management made a few tweaks to its spending guidance range for the full year. The company raised its spending guidance for R&G and SG&A, but lowered its estimates for capital expenditures. It also reaffirmed the 20% to 25% U.S. growth rate for Eylea's sales, even though the company beat that number in both the first and second quarters.
Given that Regeneron continues to offer fast growth via Praluent, sarilumab, and dupilumab, I continue to think that this stock is a great choice for any investor with an above average tolerance for risk.