Please ensure Javascript is enabled for purposes of website accessibility

Regeneron Posts Rapid Growth Due to Dupixent

By Todd Campbell – May 5, 2020 at 2:44PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The large-cap biotech company delivered strong first-quarter financial results.

Regeneron Pharmaceuticals (REGN -1.61%) unveiled its first-quarter financial results before the market opened on Tuesday, reporting revenue growth of 33.2% year over year to $1.83 billion and non-GAAP earnings of $6.60 per share, up 48.3%.

Why revenue and profit accelerated

The biotech company's revenue growth was driven largely by growing sales of Dupixent, an eczema drug that secured Food and Drug Administration approval for use in asthma patients in March 2019. Dupixent revenue, which is reported by collaboration partner Sanofi (SNY -3.00%), surged 129% year over year to $855.2 million in Q1.

A doctor speaks through a megaphone.

IMAGE SOURCE: GETTY IMAGES.

Regeneron also benefited from a 25% increase in sales of its cholesterol-lowering drug, Praluent, a 78% increase in revenue its rheumatoid arthritis drug, Kevzara, and an increase of 179% in sales of its PD-1 inhibitor, Libtayo. Sales of Praluent and Kevzara, which are also reported by Sanofi, were $79.8 million and $60.1 million, respectively. Regeneron reports U.S. sales of Libtayo, which were 61.7 million, while Sanofi reports foreign sales, which totaled $13.1 million.

Overall, sales of these drugs resulted in Regeneron reporting Sanofi-collaboration revenue of $246.9 million, reversing an $18 million net loss in the same quarter last year.

Additionally, sales remained strong for Regeneron's biggest seller, Eylea. Used to improve vision in people with various eye disorders, including wet age-related macular degeneration (AMD), Eylea's U.S. sales totaled $1.17 billion last quarter, up from $1.07 billion in Q1, 2019. Eylea sales overseas, where it's marketed by Bayer, were $254 million, up from $249 million one year ago.

Bottom-line growth outpaced top-line growth because Regeneron's operating expenses grew more slowly than its revenue. In the quarter, research and development expenses increased by just 20%, and selling, general, and administrative expenses grew 26%.

Looking ahead, Regeneron's management expects an FDA decision on Dupixent's application for use in children 6 to 11 with moderate-to-severe eczema on May 26. It also expects to file for expanded use of Libtayo and Praluent this year.

Todd Campbell has no position in any of the stocks mentioned. His clients may have positions in the companies mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Regeneron Pharmaceuticals, Inc. Stock Quote
Regeneron Pharmaceuticals, Inc.
REGN
$686.10 (-1.61%) $-11.23
Sanofi Stock Quote
Sanofi
SNY
$37.25 (-3.00%) $-1.15
Bayer Stock Quote
Bayer
BAYR.Y
$11.65 (-3.64%) $0.44

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
329%
 
S&P 500 Returns
106%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.