Regeneron Pharmaceuticals Inc
) first quarter 2013 earnings (excluding special items but
including stock-based compensation) of $1.30 per share breezed
past the Zacks Consensus Estimate of $1.06. The company earned 15
cents per share in the year-ago quarter. Higher revenues boosted
earnings in the first quarter of 2013.
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Total revenue in the reported quarter soared 89.7% to $440
million, driven by strong sales of eye drug, Eylea. This was the
fifth full quarter of the drug in the market. The drug was
launched in the US in Nov 2011 for treating patients suffering
from the neovascular form of age-related macular degeneration. In
Sep 2012, the label of the drug was successfully expanded to
treat patients suffering from macular edema following central
retinal vein occlusion.
Revenues handsomely beat the Zacks Consensus Estimate of $419
million. Total revenue included net product sales, collaboration
revenue, technology licensing revenue and other revenue.
The Quarter in Detail
Net product sales jumped to $319 million in the first quarter of
2013 from $128 million a year ago. Eylea sales came in at $314
million in the reported quarter, up 13.8% sequentially. Sales of
Arcalyst accounted for the balance.
Moreover, Zaltrap was approved by the US Food and Drug
Administration in Aug 2012 as a combination therapy for treating
patients suffering from metastatic colorectal cancer, who are
either resistant to or whose disease has progressed following
treatment with an oxaliplatin-containing regimen. Zaltrap was
approved for the metastatic colorectal cancer indication in the
EU in Feb 2013. Regeneron co-developed Zaltrap with
As per the terms of the agreement, both companies share profits
and losses from commercialization of the drug excluding Japan,
where Regeneron receives a royalty on sales. As per Sanofi, sales
of Zaltrap were $14 million in the first quarter of 2013.
Collaboration revenues came in at $114 million, up 17.5%.
Revenues from technology licensing remained flat at $5.9 million.
Other revenues accounted for the balance in the reported quarter.
Both research and development (R&D) expenses and selling,
general and administrative (SG&A) expenses were on the
upswing during the reported quarter.
The increase in R&D expenses was primarily attributable to
the company's efforts to develop its pipeline. Higher costs
related to the marketing of Eylea were primarily responsible for
pushing the SG&A costs up.
Ophthalmology Portfolio Expanded
In a separate development, Regeneron announced it has broadened
its ophthalmology portfolio by acquiring full exclusive rights to
two families of novel antibodies invented at Regeneron from
Sanofi. The candidates were previously included in Regeneron's
antibody collaboration with Sanofi.
Regeneron, a biopharmaceutical company, carries a Zacks Rank #2
(Buy) in the short run.
) too carry Zacks Rank #2 in the biopharma space.