Tarrytown-based Regeneron Pharmaceuticals reported mixed results in the first quarter of 2024, according to financials released Thursday, as sales of its leading eye disease drug dropped but revenue for other medications ballooned.
Total revenues dipped by 1% from the first quarter of 2023, to $3.2 billion. The number aligned with expectations that the company would bring in $3.2 billion for the quarter, according to a note published in early April by J.P. Morgan stock analyst Chris Schott.
The slight dip was driven by decreases in sales of one eye disease drug, Eylea. While Schott predicted that the macular degeneration therapy would bring in $2.2 billion in sales, the medication only made $1.2 billion, a 16% decrease from the prior year. Eylea sales including Eylea HD, a new higher-dose version of the drug that launched in 2023, totaled $1.4 billion. The newly-introduced medication made $200 million, which was aligned with expectations.
Eylea was the only one of Regeneron’s medications to see a dip, however. U.S. sales for high cholesterol medication Praluent ballooned by 75% to $70 million, while Evkeeza, which aims to lower bad cholesterol, brought in $24 million in the U.S., a 60% increase. Global sales for skin cancer medication Libtayo ballooned by 49% to $264 million.
Regeneron’s financial results also note that revenues from its collaboration with Sanofi increased by 14% to $910 million because of growing profits from antibody commercialization.
As sales grew, so did expenses: the company’s spend totaled $2.4 billion for the quarter, an 8% increase. Research and development expenses grew by 13% to $1.2 billion while selling, general and administrative costs jumped by 15% to $689 million. The costs of collaboration and contract manufacturing decreased by 22%, however, to $193 million.
According to Regeneron, expenses climbed because of advancements within its late-stage pipeline of cancer drugs, additional hires and commercialization expenses related to the launch of Eylea HD. Schott wrote in his note that he expects the growth of Eylea HD to accelerate, a view Regeneron leaders echoed.
Chris Fenimore, Regeneron’s chief financial officer, called the company’s quarterly performance “solid” and noted that it progressed several of the therapies in its pipeline, such as Dupixent, which the Food and Drug Administration approved in January to treat pediatric patients with eosinophilic esophagitis. Based on the quarterly results Regeneron revised its full-year research and development revenue expectations to hit between $4.9 and $5.2 billion.
Regeneron’s stock price dipped slightly Thursday morning to $900 per share and closed the day at $937.
Jacqueline Neber , 2024-05-03 11:33:03
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