Don't be fooled by Regeneron Pharmaceuticals' (NASDAQ:REGN) year-to-date stock performance. The big biotech's shares might not have done much in 2021, but Regeneron has chalked up several big achievements. It's also made a lot more money.
Just how much more was evident when Regeneron announced its first-quarter results before the market opened today. The biotech stock rose nearly 2% in early trading. Here are the highlights from Regeneron's first-quarter update.
By the numbers
Regeneron reported revenue in the first quarter of $2.53 billion, an impressive 38% year-over-year jump. But this result still fell a little short of the consensus Wall Street estimate of $2.56 billion.
The company announced net income of $1.12 billion, or $10.09 per share, based on generally accepted accounting principles (GAAP). In the prior-year period, Regeneron posted GAAP earnings of 625 million, or $5.43 per share.
Adjusted earnings came in close to Regeneron's GAAP figures. The biotech recorded adjusted net income of $1.11 billion, or $9.89 per share, up from adjusted earnings of $771 million, or $6.60 per share, in the prior-year period. This result handily beat the average analyst estimate of $9.03 per share.
Behind the numbers
Nearly all of Regeneron's products delivered solid growth in the first quarter. The biggest winner was COVID-19 antibody cocktail REGEN-COV, which generated sales of $262 million. To put into context just how important the new therapy was for Regeneron, the company's overall revenue growth would have been 18% lower without REGEN-COV.
The biotech's collaboration revenue also jumped nearly 43% year over year. Regeneron's portion of Roche's sales of the COVID-19 antibody cocktail outside of the U.S. totaled $67 million. Revenue from the company's collaboration with Sanofi soared close to 48% to $365 million, driven primarily by sales of antibody therapies, especially Dupixent.
Regeneron also continued to benefit from its long-term relationship with Bayer on eye-disease drug Eylea. The company's Bayer collaboration revenue increased nearly 15% to $333 million.
The biotech expects sustained growth for Eylea and Dupixent. Regeneron also thinks the momentum for Libtayo will accelerate. The immunotherapy recently picked up new U.S. regulatory approvals as a first-line treatment for advanced non-small cell lung cancer and in treating advanced basal cell carcinoma. Regeneron plans to submit additional regulatory filings later this year.
There's a question mark, though, about the long-term prospects for REGEN-COV. Regeneron recently reported positive late-stage results for the antibody cocktail as a COVID-19 outpatient treatment and in preventing infection. But with the increased availability of COVID-19 vaccines in the U.S. and in Europe, it's possible that the demand for REGEN-COV could fall over time.