Regeneron's Profit Soared 31% on Higher Collaboration Revenue and Eylea Sales

Regeneron's collaboration revenue more than doubled and Eylea revenue grew by double digits once again, sending profits up by 31%

May 8, 2014 at 11:59AM

Shareholders of Regeneron Pharmaceuticals (NASDAQ:REGN) can certainly see a little clearer now after their company once again delivered impressive growth in the first quarter on the heels of its blockbuster ophthalmic drug, Eylea.

For the quarter, total revenue soared 42% to $626 million from $440 million in the year-ago period. Net product sales of wet aged-related macular degeneration drug Eylea jumped 14% to $359 million in the U.S., but were negatively affected by a decrease in distributor inventory. Sans this impact, Eylea demand improved by 25% year over year. Outside the U.S., net sales of Eylea shot up to $218 million, of which Regeneron, in collaboration with marketing partner Bayer (NASDAQOTH:BAYRY), which is responsible for commercializing Eylea in all ex-U.S. markets, received $61 million for its share of net profit.

Also boosting revenue was a 125% surge in collaborative revenue to $256 million due to the commercialization of Eylea in ex-U.S. countries, and higher research and development reimbursement from its collaboration with Sanofi.

In line with its growing pipeline, R&D and selling, general and administrative expenses rose by 59% and 41%, respectively, from the prior year period.

Profit for the period motored higher by 31% to $263 million, or $2.26 on an adjusted EPS basis, compared to $201 million, or $1.78 in EPS in the year-ago quarter. Regeneron also announced that its cash and marketable securities position improved to $1.18 billion from $1.08 billion in the sequential fourth quarter.

Looking ahead, Regeneron reiterated its previous forecast which calls for $1.7 billion-$1.8 billion in net sales for Eylea.


Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.

Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information

Compare Brokers