Regeneron Reports Third Quarter 2024 Financial and Operating Results
Regeneron (REGN) reported strong Q3 2024 financial results with an 11% revenue increase to $3.72 billion. Key highlights include Dupixent global sales growth of 23% to $3.82 billion, EYLEA HD and EYLEA U.S. sales up 3% to $1.54 billion, and Libtayo global sales increase of 24% to $289 million. GAAP diluted EPS rose 30% to $11.54, while non-GAAP diluted EPS grew 8% to $12.46. The FDA approved Dupixent as the first biologic therapy for COPD treatment. The company maintains a robust pipeline with approximately 40 product candidates in clinical development.
Regeneron (REGN) ha riportato forti risultati finanziari per il terzo trimestre del 2024, con un incremento del fatturato dell'11% a 3,72 miliardi di dollari. I punti salienti includono la crescita delle vendite globali di Dupixent, aumentate del 23% a 3,82 miliardi di dollari, le vendite di EYLEA HD e EYLEA negli Stati Uniti, cresciute del 3% a 1,54 miliardi di dollari, e l'aumento delle vendite globali di Libtayo del 24% a 289 milioni di dollari. L'utile per azione (EPS) diluito GAAP è aumentato del 30% a 11,54 dollari, mentre l'EPS diluito non-GAAP è cresciuto dell'8% a 12,46 dollari. La FDA ha approvato Dupixent come prima terapia biologica per il trattamento della BPCO. L'azienda mantiene un robusto portafoglio di nuove molecole, con circa 40 candidati in sviluppo clinico.
Regeneron (REGN) reportó sólidos resultados financieros para el tercer trimestre de 2024, con un incremento del 11% en los ingresos, alcanzando 3.72 mil millones de dólares. Los puntos destacados incluyen un crecimiento en las ventas globales de Dupixent del 23% hasta 3.82 mil millones de dólares, y un aumento del 3% en las ventas de EYLEA HD y EYLEA en EE. UU., que alcanzaron 1.54 mil millones de dólares, así como un incremento del 24% en las ventas globales de Libtayo, que alcanzaron 289 millones de dólares. El EPS diluido GAAP aumentó un 30% hasta 11.54 dólares, mientras que el EPS diluido no-GAAP creció un 8% hasta 12.46 dólares. La FDA aprobó Dupixent como la primera terapia biológica para el tratamiento de la EPOC. La compañía mantiene un amplio portafolio con aproximadamente 40 candidatos a productos en desarrollo clínico.
레제너론 (REGN)은 2024년 3분기 재무 결과로 11%의 매출 증가를 기록하며 37억 2천만 달러에 도달했다고 보고했습니다. 주요 하이라이트로는 듀픽센트의 전세계 판매가 23% 증가하여 38억 2천만 달러에 달하며, EYLEA HD와 EYLEA의 미국 매출이 3% 증가하여 15억 4천만 달러에 이르고, Libtayo의 전세계 판매가 24% 증가하여 2억 8천9백만 달러에 도달했습니다. GAAP 희석 EPS는 30% 증가한 11.54달러에 달했고, 비 GAAP 희석 EPS는 8% 증가한 12.46달러에 달했습니다. FDA는 듀픽센트를 COPD 치료를 위한 첫 번째 생물학적 치료제로 승인했습니다. 회사는 약 40개의 제품 후보가 임상 개발 중인 강력한 파이프라인을 유지하고 있습니다.
Regeneron (REGN) a annoncé de solides résultats financiers pour le troisième trimestre 2024, avec une augmentation des revenus de 11% pour atteindre 3,72 milliards de dollars. Les faits marquants comprennent une croissance des ventes mondiales de Dupixent de 23% pour atteindre 3,82 milliards de dollars, une augmentation des ventes de EYLEA HD et d'EYLEA aux États-Unis de 3% pour atteindre 1,54 milliard de dollars, et une augmentation des ventes mondiales de Libtayo de 24% à 289 millions de dollars. Le BPA dilué GAAP a augmenté de 30% pour atteindre 11,54 dollars, tandis que le BPA dilué non-GAAP a crû de 8% pour atteindre 12,46 dollars. La FDA a approuvé Dupixent comme première thérapie biologique pour le traitement de la BPCO. L'entreprise maintient un portefeuille robuste avec environ 40 candidats de produits en développement clinique.
Regeneron (REGN) hat für das dritte Quartal 2024 starke Finanzergebnisse mit einem Umsatzanstieg von 11% auf 3,72 Milliarden Dollar gemeldet. Zu den Höhepunkten gehören das weltweite Verkaufswachstum von Dupixent, das um 23% auf 3,82 Milliarden Dollar stieg, und die Verkaufssteigerung von EYLEA HD und EYLEA in den USA um 3% auf 1,54 Milliarden Dollar, sowie ein Anstieg der globalen Verkaufszahlen von Libtayo um 24% auf 289 Millionen Dollar. Der verwässerte GAAP-EPS stieg um 30% auf 11,54 Dollar, während der verwässerte Non-GAAP-EPS um 8% auf 12,46 Dollar wuchs. Die FDA genehmigte Dupixent als erste biologischen Therapie zur Behandlung von COPD. Das Unternehmen verfügt über eine solide Pipeline von etwa 40 Produktkandidaten in der klinischen Entwicklung.
- Revenue increased 11% to $3.72 billion in Q3 2024
- Dupixent global sales grew 23% to $3.82 billion
- EYLEA HD and EYLEA U.S. sales increased 3% to $1.54 billion
- Libtayo global sales rose 24% to $289 million
- GAAP diluted EPS increased 30% to $11.54
- FDA approval of Dupixent for COPD treatment
- EYLEA base product sales declined 21% to $1.145 billion
- Lower net selling price for EYLEA compared to Q3 2023
- R&D expenses increased 18% to $1.272 billion
- FDA issued Complete Response Letter for linvoseltamab BLA
Insights
Q3 results showcase strong performance with
Profitability metrics are robust with GAAP EPS up
Significant clinical progress across multiple fronts strengthens Regeneron's market position. The FDA approval of Dupixent for COPD represents a major breakthrough as the first biologic treatment in this indication. The drug's expansion into new indications (CSU and BP) demonstrates strong clinical efficacy with nearly
The pipeline remains robust with approximately 40 product candidates in development. EYLEA HD's three-year data shows sustained efficacy with
- Third quarter 2024 revenues increased
11% to$3.72 billion versus third quarter 2023 - Third quarter 2024 Dupixent® global net sales (recorded by Sanofi) increased
23% to$3.82 billion versus third quarter 2023 - Third quarter 2024 U.S. net sales for EYLEA HD® and EYLEA® increased
3% versus third quarter 2023 to$1.54 billion , including$392 million from EYLEA HD - Third quarter 2024 Libtayo® global net sales increased
24% to$289 million versus third quarter 2023 - Third quarter 2024 GAAP diluted EPS increased
30% to$11.54 and non-GAAP diluted EPS(a) increased8% to$12.46 versus third quarter 2023; third quarter 2024 includes unfavorable$0.43 impact from acquired IPR&D charge - FDA approved Dupixent as first-ever biologic therapy in U.S. for treatment of inadequately controlled chronic obstructive pulmonary disease (COPD) and an eosinophilic phenotype
- Positive results reported for Dupixent pivotal trials in chronic spontaneous urticaria (CSU) and bullous pemphigoid (BP); CSU sBLA resubmitted and BP sBLA submission planned for fourth quarter 2024
TARRYTOWN, N.Y., Oct. 31, 2024 (GLOBE NEWSWIRE) -- Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN) today announced financial results for the third quarter of 2024 and provided a business update.
"Regeneron had a strong third quarter marked by
Financial Highlights
($ in millions, except per share data) | Q3 2024 | Q3 2023 | % Change | ||||||
Total revenues | $ | 3,721 | $ | 3,363 | 11 | % | |||
GAAP net income | $ | 1,341 | $ | 1,008 | 33 | % | |||
GAAP net income per share - diluted | $ | 11.54 | $ | 8.89 | 30 | % | |||
Non-GAAP net income(a) | $ | 1,462 | $ | 1,329 | 10 | % | |||
Non-GAAP net income per share - diluted(a) | $ | 12.46 | $ | 11.59 | 8 | % | |||
"Our strong third quarter financial performance was highlighted by double-digit revenue growth and continued investment in our growing pipeline," said Christopher Fenimore, Senior Vice President, Finance and Chief Financial Officer of Regeneron. "We remain focused on translating cutting-edge science into differentiated medicines that have the greatest potential to serve patients, while deploying capital with the goal of maximizing shareholder returns, primarily through investing in innovation coupled with opportunistic share repurchases."
Business Highlights
Key Pipeline Progress
Regeneron has approximately 40 product candidates in clinical development, including a number of marketed products for which it is investigating additional indications. Updates from the clinical pipeline include:
EYLEA HD (aflibercept) 8 mg
- The Company announced positive three-year (156-week) data from an extension study of the Phase 3 PHOTON trial in patients with diabetic macular edema (DME). At three years, the longer-term data showed the vast majority of EYLEA HD patients who entered the extension study sustained the visual gains and anatomic improvements achieved by the end of the second year. Of the EYLEA HD patients who completed the full 156 weeks of treatment,
48% were assigned a dosing interval of ≥20 weeks at the end of the third year. The results were presented at the American Academy of Ophthalmology (AAO) Annual Meeting.
Dupixent (dupilumab)
- In September 2024, the U.S. Food and Drug Administration (FDA) approved Dupixent as an add-on maintenance treatment for adults with inadequately controlled COPD and an eosinophilic phenotype. With this approval, Dupixent is the first biologic medicine approved in the United States, European Union (EU), and China to treat these patients.
- In September 2024, the FDA approved Dupixent as an add-on maintenance treatment for adolescents aged 12 to 17 years with inadequately controlled chronic rhinosinusitis with nasal polyposis (CRSwNP).
- The European Medicines Agency’s (EMA) Committee for Medicinal Products for Human Use (CHMP) adopted a positive opinion recommending expanded approval of Dupixent in the EU to treat children aged 1 to 11 years with eosinophilic esophagitis (EoE). The European Commission (EC) is expected to announce a final decision in the coming months.
- The Company and Sanofi announced that a confirmatory Phase 3 trial met the primary and key secondary endpoints for the investigational treatment of patients with uncontrolled, biologic-naïve CSU receiving background therapy with antihistamines, showing treatment with Dupixent resulted in a nearly
50% reduction in itch and urticaria activity scores from baseline. This positive trial confirms results from the first Phase 3 trial of Dupixent in this setting and these data supported the recent resubmission of a supplemental Biologics License Application (sBLA) to the FDA. - The Company and Sanofi announced that a Phase 3 trial in bullous pemphigoid met the primary and all key secondary endpoints evaluating the investigational use in adults with moderate-to-severe disease. In the trial, five times more Dupixent patients achieved sustained disease remission compared to those on placebo. This trial will support global regulatory submissions, including the anticipated fourth quarter 2024 submission in the United States.
Oncology Programs
- In August 2024, the EC approved Ordspono™ (odronextamab) to treat adult patients with relapsed or refractory (R/R) follicular lymphoma (FL) or R/R diffuse large B-cell lymphoma (DLBCL), after two or more lines of systemic therapy.
- The Company announced five-year results from the final pre-specified overall survival (OS) analysis of a Phase 3 trial, which evaluated Libtayo (cemiplimab) monotherapy versus chemotherapy as a first-line treatment for certain adults with advanced non-small cell lung cancer (NSCLC) with ≥
50% PD-L1 expression. The results were presented at the IASLC 2024 World Conference on Lung Cancer. - The Company submitted a regulatory application in Japan for Libtayo for first-line advanced NSCLC (monotherapy and chemotherapy combination).
- A Phase 2 study for Libtayo in neoadjuvant NSCLC was initiated.
- The Company presented new, two-year results at the European Society for Medical Oncology (ESMO) Annual Meeting, evaluating the investigational combination of fianlimab, an antibody to LAG-3, and Libtayo in adults with advanced melanoma across three independent expansion cohorts of a first-in-human, multi-cohort trial. These longer-term results show high clinical activity, including deepening responses, per a blinded independent central review.
- In August 2024, the FDA issued a Complete Response Letter (CRL) for the BLA for linvoseltamab, a bispecific antibody targeting BCMA and CD3, in R/R multiple myeloma that has progressed after at least three prior therapies. The sole approvability issue identified is related to findings from a pre-approval inspection at a third-party fill/finish manufacturer. Resolution of this issue will be required for both FDA and EC regulatory approvals.
Other Programs
- A Phase 3 study was initiated for pozelimab, an antibody to C5, in combination with cemdisiran, an siRNA therapy, in geographic atrophy.
- A Phase 2 study for REGN7999, an antibody to TMPRSS6, for the treatment of iron overload in patients with beta-thalassemia was initiated.
Third Quarter 2024 Financial Results
Revenues
($ in millions) | Q3 2024 | Q3 2023 | % Change | |||||||
Net product sales: | ||||||||||
EYLEA HD - U.S. | $ | 392 | $ | 43 | * | |||||
EYLEA - U.S. | 1,145 | 1,448 | (21 | %) | ||||||
Total EYLEA HD and EYLEA - U.S. | 1,537 | 1,491 | 3 | % | ||||||
Libtayo - Global | 289 | 232 | 25 | % | ||||||
Praluent® - U.S. | 53 | 40 | 33 | % | ||||||
Evkeeza® - U.S. | 32 | 19 | 68 | % | ||||||
Inmazeb® - Global | 35 | 4 | * | |||||||
Total net product sales | 1,946 | 1,786 | 9 | % | ||||||
Collaboration revenue: | ||||||||||
Sanofi | 1,263 | 1,065 | 19 | % | ||||||
Bayer | 391 | 377 | 4 | % | ||||||
Other | 6 | (3 | ) | * | ||||||
Other revenue | 114 | 138 | (17 | %) | ||||||
Total revenues | $ | 3,720 | $ | 3,363 | 11 | % | ||||
* Percentage not meaningful | ||||||||||
Total EYLEA HD and EYLEA net product sales in the U.S. increased
Sanofi collaboration revenue increased in the third quarter of 2024, compared to the third quarter of 2023, due to an increase in the Company's share of profits from commercialization of antibodies, which were
Refer to Table 4 for a summary of collaboration revenue.
Operating Expenses
GAAP | % Change | Non-GAAP(a) | % Change | ||||||||||||||||
($ in millions) | Q3 2024 | Q3 2023 | Q3 2024 | Q3 2023 | |||||||||||||||
Research and development (R&D) | $ | 1,272 | $ | 1,075 | 18 | % | $ | 1,146 | $ | 954 | 20 | % | |||||||
Acquired in-process research and development (IPR&D) | $ | 56 | $ | 100 | (44 | %) | * | * | n/a | ||||||||||
Selling, general, and administrative (SG&A) | $ | 714 | $ | 641 | 11 | % | $ | 613 | $ | 534 | 15 | % | |||||||
Cost of goods sold (COGS) | $ | 262 | $ | 225 | 16 | % | $ | 217 | $ | 181 | 20 | % | |||||||
Cost of collaboration and contract manufacturing (COCM) | $ | 229 | $ | 212 | 8 | % | * | * | n/a | ||||||||||
Other operating expense (income), net | $ | 8 | $ | (1 | ) | ** | $ | — | * | ** | |||||||||
* GAAP and non-GAAP amounts are equivalent as no non-GAAP adjustments have been recorded. | |||||||||||||||||||
** Percentage not meaningful |
- GAAP and non-GAAP R&D expenses increased in the third quarter of 2024, compared to the third quarter of 2023, driven by the advancement of the Company's clinical pipeline, including late-stage oncology programs, and higher headcount and headcount-related costs.
- Acquired IPR&D for the third quarter of 2024 included a
$45 million development milestone in connection with the Company's collaboration agreement with Sonoma Biotherapeutics, Inc. Acquired IPR&D expense in the third quarter of 2023 related to a$100 million development milestone in connection with the Company's collaboration with Alnylam Pharmaceuticals, Inc. - GAAP and non-GAAP SG&A expenses increased in the third quarter of 2024, compared to the third quarter of 2023, due to higher commercialization-related expenses to support the Company's launch of EYLEA HD and higher headcount and headcount-related costs partly related to the Company's international commercial expansion.
- GAAP and non-GAAP COGS increased in the third quarter of 2024, compared to the third quarter of 2023, primarily due to higher start-up costs for the Company's Rensselaer, New York fill/finish facility.
Other Financial Information
GAAP other income (expense) included the recognition of net unrealized gains on equity securities of
In the third quarter of 2024, the Company's GAAP effective tax rate (ETR) was
GAAP net income per diluted share was
During the third quarter of 2024, the Company repurchased shares of its common stock and recorded the cost of the shares, or
2024 Financial Guidance(c)
The Company's full year 2024 financial guidance consists of the following components:
2024 Guidance | ||||
Prior | Updated | |||
GAAP R&D | ||||
Non-GAAP R&D(a) | ||||
GAAP SG&A | ||||
Non-GAAP SG&A(a) | ||||
GAAP gross margin on net product sales(d) | Approximately | Unchanged | ||
Non-GAAP gross margin on net product sales(a)(d) | Approximately | Unchanged | ||
COCM(e)* | ||||
Capital expenditures* | ||||
GAAP effective tax rate | Unchanged | |||
Non-GAAP effective tax rate(a) | Unchanged | |||
* GAAP and non-GAAP amounts are equivalent as no non-GAAP adjustments have been or are expected to be recorded. | ||||
A reconciliation of full year 2024 GAAP to non-GAAP financial guidance is included below:
Projected Range | ||||||||
($ in millions) | Low | High | ||||||
GAAP R&D | $ | 5,055 | $ | 5,145 | ||||
Stock-based compensation expense | 520 | 540 | ||||||
Acquisition and integration costs | 10 | 30 | ||||||
Non-GAAP R&D | $ | 4,525 | $ | 4,575 | ||||
GAAP SG&A | $ | 2,930 | $ | 3,020 | ||||
Stock-based compensation expense | 340 | 360 | ||||||
Acquisition, integration, and other costs | 40 | 60 | ||||||
Non-GAAP SG&A | $ | 2,550 | $ | 2,600 | ||||
GAAP gross margin on net product sales | Approximately | Approximately | ||||||
Stock-based compensation expense | 1 | % | 1 | % | ||||
Intangible asset amortization expense | 1 | % | 1 | % | ||||
Acquisition and integration costs | < | < | ||||||
Non-GAAP gross margin on net product sales | Approximately | Approximately | ||||||
GAAP ETR | 8 | % | 9 | % | ||||
Income tax effect of GAAP to non-GAAP reconciling items | 2 | % | 2 | % | ||||
Non-GAAP ETR | 10 | % | 11 | % |
(a) | This press release uses non-GAAP R&D, non-GAAP SG&A, non-GAAP COGS, non-GAAP gross margin on net product sales, non-GAAP other operating (income) expense, net, non-GAAP other income (expense), net, non-GAAP ETR, non-GAAP net income, non-GAAP net income per share, total revenues excluding Ronapreve™(b), and free cash flow, which are financial measures that are not calculated in accordance with U.S. Generally Accepted Accounting Principles (GAAP). These non-GAAP financial measures are computed by excluding certain non-cash and/or other items from the related GAAP financial measure. The Company also includes a non-GAAP adjustment for the estimated income tax effect of reconciling items. A reconciliation of the Company's GAAP to non-GAAP results is included in Table 3 of this press release. The Company makes such adjustments for items the Company does not view as useful in evaluating its operating performance. For example, adjustments may be made for items that fluctuate from period to period based on factors that are not within the Company's control (such as the Company's stock price on the dates share-based grants are issued or changes in the fair value of the Company's investments in equity securities) or items that are not associated with normal, recurring operations (such as acquisition and integration costs). Management uses these non-GAAP measures for planning, budgeting, forecasting, assessing historical performance, and making financial and operational decisions, and also provides forecasts to investors on this basis. With respect to free cash flows, the Company believes that this non-GAAP measure provides a further measure of the Company's ability to generate cash flows from its operations. Additionally, such non-GAAP measures provide investors with an enhanced understanding of the financial performance of the Company's core business operations. However, there are limitations in the use of these and other non-GAAP financial measures as they exclude certain expenses that are recurring in nature. Furthermore, the Company's non-GAAP financial measures may not be comparable with non-GAAP information provided by other companies. Any non-GAAP financial measure presented by the Company should be considered supplemental to, and not a substitute for, measures of financial performance prepared in accordance with GAAP. |
(b) | The casirivimab and imdevimab antibody cocktail for COVID-19 is known as REGEN-COV® in the United States and Ronapreve in other countries. Roche records net product sales of Ronapreve outside the United States. |
(c) | The Company's 2024 financial guidance does not assume the completion of any business development transactions not completed as of the date of this press release. |
(d) | Gross margin on net product sales represents gross profit expressed as a percentage of total net product sales recorded by the Company. Gross profit is calculated as net product sales less cost of goods sold. |
(e) | Corresponding reimbursements from collaborators and others for manufacturing of commercial supplies is recorded within revenues. |
Conference Call Information
Regeneron will host a conference call and simultaneous webcast to discuss its third quarter 2024 financial and operating results on Thursday, October 31, 2024, at 8:30 AM Eastern Time. Participants may access the conference call live via webcast, or register in advance and participate via telephone, on the "Investors and Media" page of Regeneron's website at www.regeneron.com. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique passcode and registrant ID that can be used to access the call. A replay of the conference call and webcast will be archived on the Company's website for at least 30 days.
About Regeneron Pharmaceuticals, Inc.
Regeneron is a leading biotechnology company that invents, develops, and commercializes life-transforming medicines for people with serious diseases. Founded and led by physician-scientists, Regeneron's unique ability to repeatedly and consistently translate science into medicine has led to numerous approved treatments and product candidates in development, most of which were homegrown in Regeneron's laboratories. Regeneron's medicines and pipeline are designed to help patients with eye diseases, allergic and inflammatory diseases, cancer, cardiovascular and metabolic diseases, neurological diseases, hematologic conditions, infectious diseases, and rare diseases.
Regeneron pushes the boundaries of scientific discovery and accelerates drug development using its proprietary technologies, such as VelociSuite®, which produces optimized fully human antibodies and new classes of bispecific antibodies. Regeneron is shaping the next frontier of medicine with data-powered insights from the Regeneron Genetics Center® and pioneering genetic medicine platforms, enabling Regeneron to identify innovative targets and complementary approaches to potentially treat or cure diseases.
For more information, please visit www.regeneron.com or follow Regeneron on LinkedIn, Instagram, Facebook, or X.
Forward-Looking Statements and Use of Digital Media
This press release includes forward-looking statements that involve risks and uncertainties relating to future events and the future performance of Regeneron Pharmaceuticals, Inc. ("Regeneron" or the "Company"), and actual events or results may differ materially from these forward-looking statements. Words such as "anticipate," "expect," "intend," "plan," "believe," "seek," "estimate," variations of such words, and similar expressions are intended to identify such forward-looking statements, although not all forward-looking statements contain these identifying words. These statements concern, and these risks and uncertainties include, among others, the nature, timing, and possible success and therapeutic applications of products marketed or otherwise commercialized by Regeneron and/or its collaborators or licensees (collectively, "Regeneron's Products") and product candidates being developed by Regeneron and/or its collaborators or licensees (collectively, "Regeneron's Product Candidates") and research and clinical programs now underway or planned, including without limitation EYLEA HD® (aflibercept) Injection 8 mg, EYLEA® (aflibercept) Injection, Dupixent® (dupilumab), Libtayo® (cemiplimab), Praluent® (alirocumab), Kevzara® (sarilumab), Evkeeza® (evinacumab), Veopoz® (pozelimab), Ordspono™ (odronextamab), itepekimab, fianlimab, garetosmab, linvoseltamab, REGN5713-5714-5715, nexiguran ziclumeran (NTLA-2001), Regeneron's other oncology programs (including its costimulatory bispecific portfolio), Regeneron's and its collaborators' earlier-stage programs, and the use of human genetics in Regeneron's research programs; the likelihood and timing of achieving any of the anticipated milestones described in this press release; safety issues resulting from the administration of Regeneron's Products and Regeneron's Product Candidates in patients, including serious complications or side effects in connection with the use of Regeneron’s Products and Regeneron's Product Candidates in clinical trials; the likelihood, timing, and scope of possible regulatory approval and commercial launch of Regeneron's Product Candidates and new indications for Regeneron's Products, including those listed above and/or otherwise discussed in this press release; the extent to which the results from the research and development programs conducted by Regeneron and/or its collaborators may be replicated in other studies and/or lead to advancement of product candidates to clinical trials, therapeutic applications, or regulatory approval; ongoing regulatory obligations and oversight impacting Regeneron's Products, research and clinical programs, and business, including those relating to patient privacy; determinations by regulatory and administrative governmental authorities which may delay or restrict Regeneron's ability to continue to develop or commercialize Regeneron's Products and Regeneron's Product Candidates; competing drugs and product candidates that may be superior to, or more cost effective than, Regeneron's Products and Regeneron's Product Candidates (including biosimilar versions of Regeneron's Products); uncertainty of the utilization, market acceptance, and commercial success of Regeneron's Products and Regeneron's Product Candidates and the impact of studies (whether conducted by Regeneron or others and whether mandated or voluntary) or recommendations and guidelines from governmental authorities and other third parties on the commercial success of Regeneron's Products and Regeneron's Product Candidates; the ability of Regeneron to manufacture and manage supply chains for multiple products and product candidates; the ability of Regeneron’s collaborators, suppliers, or other third parties (as applicable) to perform manufacturing, filling, finishing, packaging, labeling, distribution, and other steps related to Regeneron’s Products and Regeneron's Product Candidates; the availability and extent of reimbursement of Regeneron’s Products from third-party payers, including private payer healthcare and insurance programs, health maintenance organizations, pharmacy benefit management companies, and government programs such as Medicare and Medicaid; coverage and reimbursement determinations by such payers and new policies and procedures adopted by such payers; unanticipated expenses; the costs of developing, producing, and selling products; the ability of Regeneron to meet any of its financial projections or guidance and changes to the assumptions underlying those projections or guidance, including GAAP and non-GAAP R&D, GAAP and non-GAAP SG&A, GAAP and non-GAAP gross margin on net product sales, COCM, capital expenditures, and GAAP and non-GAAP ETR; the potential for any license or collaboration agreement, including Regeneron's agreements with Sanofi and Bayer (or their respective affiliated companies, as applicable), to be cancelled or terminated; the impact of public health outbreaks, epidemics, or pandemics (such as the COVID-19 pandemic) on Regeneron's business; and risks associated with intellectual property of other parties and pending or future litigation relating thereto (including without limitation the patent litigation and other related proceedings relating to EYLEA), other litigation and other proceedings and government investigations relating to the Company and/or its operations (including the pending civil proceedings initiated or joined by the U.S. Department of Justice and the U.S. Attorney's Office for the District of Massachusetts), the ultimate outcome of any such proceedings and investigations, and the impact any of the foregoing may have on Regeneron’s business, prospects, operating results, and financial condition. A more complete description of these and other material risks can be found in Regeneron's filings with the U.S. Securities and Exchange Commission, including its Form 10-K for the fiscal year ended December 31, 2023 and its Form 10-Q for the quarterly period ended September 30, 2024. Any forward-looking statements are made based on management's current beliefs and judgment, and the reader is cautioned not to rely on any forward-looking statements made by Regeneron. Regeneron does not undertake any obligation to update (publicly or otherwise) any forward-looking statement, including without limitation any financial projection or guidance, whether as a result of new information, future events, or otherwise.
Regeneron uses its media and investor relations website and social media outlets to publish important information about the Company, including information that may be deemed material to investors. Financial and other information about Regeneron is routinely posted and is accessible on Regeneron's media and investor relations website (https://investor.regeneron.com) and its LinkedIn page (https://www.linkedin.com/company/regeneron-pharmaceuticals).
Non-GAAP Financial Measures
This press release and/or the financial results attached to this press release include amounts that are considered "non-GAAP financial measures" under SEC rules. As required, Regeneron has provided reconciliations of such non-GAAP financial measures.
Contact Information: | ||
Ryan Crowe | Christina Chan | |
Investor Relations | Corporate Affairs | |
914-847-8790 | 914-847-8827 | |
ryan.crowe@regeneron.com | christina.chan@regeneron.com | |
TABLE 1
REGENERON PHARMACEUTICALS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions) | ||||||
September 30, | December 31, | |||||
2024 | 2023 | |||||
Assets: | ||||||
Cash and marketable securities | $ | 18,287.4 | $ | 16,241.3 | ||
Accounts receivable, net | 6,107.1 | 5,667.3 | ||||
Inventories | 3,018.0 | 2,580.5 | ||||
Property, plant, and equipment, net | 4,439.2 | 4,146.4 | ||||
Intangible assets, net | 1,120.1 | 1,038.6 | ||||
Deferred tax assets | 3,015.1 | 2,575.4 | ||||
Other assets | 1,455.0 | 830.7 | ||||
Total assets | $ | 37,441.9 | $ | 33,080.2 | ||
Liabilities and stockholders' equity: | ||||||
Accounts payable, accrued expenses, and other liabilities | $ | 4,577.4 | $ | 3,818.6 | ||
Finance lease liabilities | 720.0 | 720.0 | ||||
Deferred revenue | 834.6 | 585.6 | ||||
Long-term debt | 1,984.0 | 1,982.9 | ||||
Stockholders' equity | 29,325.9 | 25,973.1 | ||||
Total liabilities and stockholders' equity | $ | 37,441.9 | $ | 33,080.2 |
TABLE 2
REGENERON PHARMACEUTICALS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In millions, except per share data) | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Revenues: | ||||||||||||||||
Net product sales | $ | 1,946.4 | $ | 1,786.1 | $ | 5,626.3 | $ | 5,226.2 | ||||||||
Collaboration revenue | 1,660.1 | 1,438.3 | 4,450.9 | 4,133.1 | ||||||||||||
Other revenue | 114.2 | 138.3 | 335.6 | 323.6 | ||||||||||||
3,720.7 | 3,362.7 | 10,412.8 | 9,682.9 | |||||||||||||
Expenses: | ||||||||||||||||
Research and development | 1,271.5 | 1,075.3 | 3,719.9 | 3,261.8 | ||||||||||||
Acquired in-process research and development | 56.2 | 100.0 | 87.2 | 156.1 | ||||||||||||
Selling, general, and administrative | 714.4 | 640.5 | 2,162.2 | 1,893.6 | ||||||||||||
Cost of goods sold | 262.3 | 224.5 | 760.5 | 625.3 | ||||||||||||
Cost of collaboration and contract manufacturing | 228.8 | 211.9 | 644.6 | 673.5 | ||||||||||||
Other operating expense (income), net | 8.0 | (0.5 | ) | 37.9 | (1.6 | ) | ||||||||||
2,541.2 | 2,251.7 | 7,412.3 | 6,608.7 | |||||||||||||
Income from operations | 1,179.5 | 1,111.0 | 3,000.5 | 3,074.2 | ||||||||||||
Other income (expense): | ||||||||||||||||
Other income (expense), net | 327.3 | 17.6 | 866.0 | 32.2 | ||||||||||||
Interest expense | (13.8 | ) | (17.8 | ) | (44.7 | ) | (54.7 | ) | ||||||||
313.5 | (0.2 | ) | 821.3 | (22.5 | ) | |||||||||||
Income before income taxes | 1,493.0 | 1,110.8 | 3,821.8 | 3,051.7 | ||||||||||||
Income tax expense | 152.4 | 103.0 | 326.9 | 257.7 | ||||||||||||
Net income | $ | 1,340.6 | $ | 1,007.8 | $ | 3,494.9 | $ | 2,794.0 | ||||||||
Net income per share - basic | $ | 12.40 | $ | 9.48 | $ | 32.36 | $ | 26.16 | ||||||||
Net income per share - diluted | $ | 11.54 | $ | 8.89 | $ | 30.23 | $ | 24.57 | ||||||||
Weighted average shares outstanding - basic | 108.1 | 106.3 | 108.0 | 106.8 | ||||||||||||
Weighted average shares outstanding - diluted | 116.2 | 113.4 | 115.6 | 113.7 |
TABLE 3
REGENERON PHARMACEUTICALS, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (Unaudited) (In millions, except per share data) | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
GAAP R&D | $ | 1,271.5 | $ | 1,075.3 | $ | 3,719.9 | $ | 3,261.8 | ||||||||
Stock-based compensation expense | 123.7 | 107.4 | 369.1 | 356.0 | ||||||||||||
Acquisition and integration costs | 2.0 | 13.5 | 11.1 | 17.7 | ||||||||||||
Non-GAAP R&D | $ | 1,145.8 | $ | 954.4 | $ | 3,339.7 | $ | 2,888.1 | ||||||||
GAAP SG&A | $ | 714.4 | $ | 640.5 | $ | 2,162.2 | $ | 1,893.6 | ||||||||
Stock-based compensation expense | 83.1 | 74.4 | 251.9 | 224.5 | ||||||||||||
Acquisition, integration, and other costs | 18.2 | 32.4 | 46.7 | 58.5 | ||||||||||||
Non-GAAP SG&A | $ | 613.1 | $ | 533.7 | $ | 1,863.6 | $ | 1,610.6 | ||||||||
GAAP COGS | $ | 262.3 | $ | 224.5 | $ | 760.5 | $ | 625.3 | ||||||||
Stock-based compensation expense | 18.3 | 22.1 | 57.4 | 64.1 | ||||||||||||
Acquisition and integration costs | 0.5 | 0.9 | 1.7 | 1.4 | ||||||||||||
Intangible asset amortization expense | 26.1 | 20.7 | 74.4 | 59.0 | ||||||||||||
Charges related to REGEN-COV | — | — | — | (10.0 | ) | |||||||||||
Non-GAAP COGS | $ | 217.4 | $ | 180.8 | $ | 627.0 | $ | 510.8 | ||||||||
GAAP other operating expense (income), net | $ | 8.0 | $ | (0.5 | ) | $ | 37.9 | $ | (1.6 | ) | ||||||
Change in fair value of contingent consideration | 8.0 | — | 37.9 | — | ||||||||||||
Non-GAAP other operating expense (income), net | $ | — | $ | (0.5 | ) | $ | — | $ | (1.6 | ) | ||||||
GAAP other income (expense), net | $ | 313.5 | $ | (0.2 | ) | $ | 821.3 | $ | (22.5 | ) | ||||||
(Gains) losses on investments, net | (134.7 | ) | 127.0 | (331.2 | ) | 324.5 | ||||||||||
Non-GAAP other income (expense), net | $ | 178.8 | $ | 126.8 | $ | 490.1 | $ | 302.0 | ||||||||
GAAP net income | $ | 1,340.6 | $ | 1,007.8 | $ | 3,494.9 | $ | 2,794.0 | ||||||||
Total of GAAP to non-GAAP reconciling items above | 145.2 | 398.4 | 519.0 | 1,095.7 | ||||||||||||
Income tax effect of GAAP to non-GAAP reconciling items | (23.4 | ) | (77.1 | ) | (84.4 | ) | (211.5 | ) | ||||||||
Non-GAAP net income | $ | 1,462.4 | $ | 1,329.1 | $ | 3,929.5 | $ | 3,678.2 | ||||||||
Non-GAAP net income per share - basic | $ | 13.53 | $ | 12.50 | $ | 36.38 | $ | 34.44 | ||||||||
Non-GAAP net income per share - diluted | $ | 12.46 | $ | 11.59 | $ | 33.53 | $ | 31.90 | ||||||||
Shares used in calculating: | ||||||||||||||||
Non-GAAP net income per share - basic | 108.1 | 106.3 | 108.0 | 106.8 | ||||||||||||
Non-GAAP net income per share - diluted | 117.4 | 114.7 | 117.2 | 115.3 |
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (Unaudited) (continued) | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Revenue reconciliation: | ||||||||||||||||
Total revenues | $ | 3,720.7 | $ | 3,362.7 | $ | 10,412.8 | $ | 9,682.9 | ||||||||
Global gross profits earned in connection with sales of Ronapreve | 0.5 | — | 1.4 | 222.2 | ||||||||||||
Other | — | (5.7 | ) | — | (9.5 | ) | ||||||||||
Total revenues excluding Ronapreve | $ | 3,720.2 | $ | 3,368.4 | $ | 10,411.4 | $ | 9,470.2 | ||||||||
Effective tax rate reconciliation: | ||||||||||||||||
GAAP ETR | 10.2 | % | 9.3 | % | 8.6 | % | 8.4 | % | ||||||||
Income tax effect of GAAP to non-GAAP reconciling items | 0.5 | % | 2.6 | % | 0.9 | % | 2.9 | % | ||||||||
Non-GAAP ETR | 10.7 | % | 11.9 | % | 9.5 | % | 11.3 | % | ||||||||
Nine Months Ended September 30, | ||||||||||||||||
2024 | 2023 | |||||||||||||||
Free cash flow reconciliation: | ||||||||||||||||
Net cash provided by operating activities | $ | 3,157.7 | $ | 3,504.3 | ||||||||||||
Capital expenditures | (556.3 | ) | (467.2 | ) | ||||||||||||
Free cash flow | $ | 2,601.4 | $ | 3,037.1 |
TABLE 4
REGENERON PHARMACEUTICALS, INC. COLLABORATION REVENUE (Unaudited) (In millions) | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||
Sanofi collaboration revenue: | ||||||||||||||
Regeneron's share of profits in connection with commercialization of antibodies | $ | 1,088.3 | $ | 863.0 | $ | 2,880.6 | $ | 2,250.6 | ||||||
Sales-based milestones earned | — | 50.0 | — | 50.0 | ||||||||||
Reimbursement for manufacturing of commercial supplies | 175.1 | 151.5 | 438.2 | 506.0 | ||||||||||
Total Sanofi collaboration revenue | 1,263.4 | 1,064.5 | 3,318.8 | 2,806.6 | ||||||||||
Bayer collaboration revenue: | ||||||||||||||
Regeneron's share of profits in connection with commercialization of EYLEA 8 mg and EYLEA outside the United States | 367.6 | 349.9 | 1,054.5 | 1,031.0 | ||||||||||
Reimbursement for manufacturing of ex-U.S. commercial supplies | 23.2 | 27.2 | 67.4 | 79.7 | ||||||||||
Total Bayer collaboration revenue | 390.8 | 377.1 | 1,121.9 | 1,110.7 | ||||||||||
Other collaboration revenue: | ||||||||||||||
Global gross profits earned from Roche in connection with sales of Ronapreve | 0.5 | — | 1.4 | 222.2 | ||||||||||
Other | 5.4 | (3.3 | ) | 8.8 | (6.4 | ) | ||||||||
Total collaboration revenue | $ | 1,660.1 | $ | 1,438.3 | $ | 4,450.9 | $ | 4,133.1 |
TABLE 5
REGENERON PHARMACEUTICALS, INC. NET PRODUCT SALES OF REGENERON-DISCOVERED PRODUCTS (Unaudited) (In millions) | |||||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||||
2024 | 2023 | % Change | |||||||||||||||||||
U.S. | ROW(g) | Total | U.S. | ROW | Total | (Total Sales) | |||||||||||||||
EYLEA HD and EYLEA(a) | $ | 1,536.9 | $ | 931.7 | $ | 2,468.6 | $ | 1,490.9 | $ | 872.2 | $ | 2,363.1 | 4 | % | |||||||
Dupixent(b) | $ | 2,824.7 | $ | 992.5 | $ | 3,817.2 | $ | 2,366.3 | $ | 731.3 | $ | 3,097.6 | 23 | % | |||||||
Libtayo(c) | $ | 194.5 | $ | 94.1 | $ | 288.6 | $ | 144.1 | $ | 88.3 | $ | 232.4 | 24 | % | |||||||
Praluent(d) | $ | 52.9 | $ | 138.5 | $ | 191.4 | $ | 40.4 | $ | 125.1 | $ | 165.5 | 16 | % | |||||||
Kevzara(b) | $ | 72.7 | $ | 47.4 | $ | 120.1 | $ | 52.4 | $ | 43.3 | $ | 95.7 | 25 | % | |||||||
REGEN-COV(e) | $ | — | $ | 1.2 | $ | 1.2 | $ | — | $ | — | $ | — | * | ||||||||
Other products(f) | $ | 68.2 | $ | 23.2 | $ | 91.4 | $ | 23.4 | $ | 15.5 | $ | 38.9 | 135 | % | |||||||
Nine Months Ended September 30, | |||||||||||||||||||||
2024 | 2023 | % Change | |||||||||||||||||||
U.S. | ROW | Total | U.S. | ROW | Total | (Total Sales) | |||||||||||||||
EYLEA HD and EYLEA(a) | $ | 4,473.2 | $ | 2,688.9 | $ | 7,162.1 | $ | 4,424.8 | $ | 2,605.6 | $ | 7,030.4 | 2 | % | |||||||
Dupixent(b) | $ | 7,652.9 | $ | 2,797.5 | $ | 10,450.4 | $ | 6,369.6 | $ | 2,002.4 | $ | 8,372.0 | 25 | % | |||||||
Libtayo(c) | $ | 536.1 | $ | 313.8 | $ | 849.9 | $ | 384.0 | $ | 241.0 | $ | 625.0 | 36 | % | |||||||
Praluent(d) | $ | 179.0 | $ | 405.6 | $ | 584.6 | $ | 121.1 | $ | 330.6 | $ | 451.7 | 29 | % | |||||||
Kevzara(b) | $ | 187.8 | $ | 136.1 | $ | 323.9 | $ | 148.5 | $ | 125.2 | $ | 273.7 | 18 | % | |||||||
REGEN-COV(e) | $ | — | $ | 3.5 | $ | 3.5 | $ | — | $ | 613.2 | $ | 613.2 | (99 | %) | |||||||
Other products(f) | $ | 124.4 | $ | 61.7 | $ | 186.1 | $ | 64.0 | $ | 48.9 | $ | 112.9 | 65 | % | |||||||
Note: The table above includes net product sales of Regeneron-discovered products. Such net product sales are recorded by the Company or others, as further described in the footnotes below. | |||||||||||||||||||||
* Percentage not meaningful | |||||||||||||||||||||
(a) The Company records net product sales of EYLEA HD and EYLEA in the United States, and Bayer records net product sales outside the United States. The Company records its share of profits in connection with sales outside the United States within Collaboration revenue. | |||||||||||||||||||||
(b) Sanofi records global net product sales of Dupixent and Kevzara, and the Company records its share of profits in connection with global sales of such products within Collaboration revenue. | |||||||||||||||||||||
(c) The Company records global net product sales of Libtayo and pays Sanofi a royalty on such sales. Prior to July 1, 2022, Sanofi recorded net product sales of Libtayo outside the United States. Included in this line item for the nine months ended September 30, 2023 is approximately | |||||||||||||||||||||
(d) The Company records net product sales of Praluent in the United States. Sanofi records net product sales of Praluent outside the United States and pays the Company a royalty on such sales, which is recorded within Other revenue. | |||||||||||||||||||||
(e) Roche records net product sales outside the United States and the Company records its share of gross profits from sales, which is recorded within Collaboration revenue. | |||||||||||||||||||||
(f) Included in this line item are products which are sold by the Company and others. Refer to "Third Quarter 2024 Financial Results" section above for a complete listing of net product sales recorded by the Company. Not included in this line item are net product sales of ARCALYST®, which are recorded by Kiniksa; net product sales of ARCALYST were | |||||||||||||||||||||
(g) Rest of world (ROW) |
FAQ
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