Regeneron Pharmaceuticals (REGN 0.98%), a leading biotech, disclosed its first-quarter results on May 2, reporting figures that fell slightly short of Wall Street's predictions. The company achieved a non-GAAP diluted EPS of $9.55, not meeting the $10.17 analysts had projected. Comparatively, revenue also dipped by 1% year over year to $3.15 billion, just below the $3.23 billion expectation. However, excluding sales of Ronapreve -- the COVID antibody cocktail it collaborated with Roche on -- revenues increased 7% from the prior-year period.
| Metrics | Q1 2024 | Q1 2024 Analyst Estimate | Q1 2023 | % Change |
|---|---|---|---|---|
| Revenue | $3.15 billion | $3.23 billion | $3.16 billion | (0.5%) |
| GAAP net income | $722 million | N/A | $818 million | (11.7%) |
| GAAP EPS | $6.27 | N/A | $7.17 | (12.6%) |
| Non-GAAP net income | $1.12 billion | N/A | $1.17 billion | (4.5%) |
| Non-GAAP EPS | $9.55 | $10.17 | $10.09 | (5.4%) |
Data sources: Company results from company. Analyst estimates from FactSet.
Understanding Regeneron Pharmaceuticals
Regeneron is a pioneer in biotechnology, focusing on developing treatments for serious medical conditions. It is especially noted for drugs like Eylea and Dupixent, which have driven much of its revenue growth. At the heart of Regeneron's ongoing business strategy is its commitment to cutting-edge research and development. It has more than 35 product candidates currently in clinical development.
First-quarter highlights
Overall revenues experienced a slight dip for a reason beyond the company's control. Its collaboration revenue for the COVID treatment Ronapreve, known as REGEN-COV domestically, dried up after accounting for about $222 million in the prior-year period. Regeneron management says it doesn't expect any further collaboration payments from Roche on that front.
However, sales of Dupixent (marketed by Sanofi) and Libtayo surged, up 24% and 45%, respectively, compared to the prior-year period.
R&D and SG&A expenses rose 13% and 15%, respectively, reflecting increased investment in future growth. Despite facing hurdles such as the FDA's rejection of odronextamab, Regeneron's concentrated efforts in innovation and efficiency, paired with the anticipation of new product launches, continue to paint a positive outlook.
Another trend worth noting was the growth in sales of Eylea HD, which launched in August. Total sales for the retinal disease treatment Eylea in the quarter were $1.40 billion, $200 million of which came from the newer HD formulation, which has a higher dose and is longer acting.
Looking ahead
Investors should watch for further developments in Regeneron's pipeline, especially in the oncology and weight loss treatment areas. The company also announced a $3 billion share repurchase program.
