Regeneron Pharmaceuticals (REGN -0.74%) is absolutely rocking so far in 2020. The stock has jumped more than 55% year to date. The company has had plenty of positive pipeline news, with President Trump even crediting Regeneron's antibody therapy for his rapid recovery from the coronavirus.
More good news was in store for investors when Regeneron announced its third-quarter results before the market opened on Thursday. Here are the highlights.
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By the numbers
Regeneron reported revenue in the third quarter of $2.3 billion, a 32% year-over-year jump. This result also easily topped the average analysts' revenue estimate of $2.09 billion.
The company announced third-quarter net income of $842 million, or $7.39 per share, based on generally accepted accounting principles (GAAP). Regeneron generated GAAP earnings of $670 million, or $5.86 per share, in the prior-year period.
On an adjusted basis, Regeneron's net income in the third quarter totaled $961 million, or $8.36 per share. This reflected a strong increase from adjusted earnings of $762 million, or $6.67 per share, posted in the same period in 2019. It also trounced the Wall Street consensus adjusted earnings estimate of $7.13 per share.
Behind the numbers
Eylea continued to rank as the most important driver behind Regeneron's growth. Net product sales in the U.S. for the eye-disease drug jumped nearly 11% year over year to $1.318 billion in the third quarter.
Regeneron's collaborations with Sanofi and Bayer also boosted the biotech's revenue in Q3. Total revenue from these collaborations soared 39% year over year to $653 million. The most important growth driver was Regeneron's share of profits from the commercialization of antibody therapies (especially Dupixent), with the company's proceeds more than doubling year over year to $213 million in the third quarter. Global net sales for Dupixent (which are recorded by Sanofi) jumped 69% to $1.07 billion in the third quarter.
The company also saw a major increase in other revenue during Q3, up 330% year over year to $158.6 million. This big jump included funds received from Regeneron's agreements with the Biomedical Advanced Research and Development Authority (BARDA) in connection with its REGN-COV2 COVID-19 antibody therapy and Inmazeb Ebola virus antibody therapy programs.
Looking ahead
Regeneron now anticipates research and development expenses of $2.75 billion to $2.82 billion in full-year 2020, up from its previous guidance of $2.605 billion to $2.725 billion. The company also projected 2020 selling, general, and administrative expenses of $1.425 billion to $1.475 billion, a narrowing compared to the range of $1.4 billion to $1.48 billion in its previous outlook. But Regeneron didn't provide revenue or earnings guidance.
There are several potential catalysts on the way for the biotech stock. The Food and Drug Administration is scheduled to make key approval decisions for evinacumab, Libtayo, and Praluent in the first four months of 2021. Regeneron also hopes to win FDA Emergency Use Authorization for COVID-19 antibody therapy REGN-COV2.
