Regeneron Pharmaceuticals Inc.
) recently announced that sales of its eye drug Eylea for the
final quarter of 2012 came in at $276 million. The company
further announced that 2012 US sales of the drug for 2012 were
$838 million. Sales of the eye-drug in 2012 were above the
company's projected range of $790-$815 million. However, the
sales figures of Eylea reported by the biopharmaceutical company
failed to find favor with the investors and adversely impacted
the stock price. Detailed financial results for the fourth
quarter and full year 2012 are expected to be announced by
Regeneron expects sales of Eylea to increase by 50% in 2013 over
2012 levels. Consequently, 2013 sales are expected in the range
of $1.2-$1.3 billion. We remind investors that Eylea was launched
in the US in November 2011 for treating patients suffering from
the neovascular form of age-related macular degeneration. The
drug was cleared in the EU for the same indication late last
year. In September 2012, the label of the drug was successfully
expanded in the US to treat patients suffering from macular edema
following central retinal vein occlusion (CRVO).
Partner Bayer is seeking approval of Eylea for the CRVO
indication in the EU. Eylea is also being studied for other
indications, such as diabetic macular edema and macular edema
following branch retinal vein occlusion and myopic choroidal
Per the agreement, Bayer is responsible for marketing Eylea in
ex-US markets on approval. The profit earned from the sales of
the drug in those markets will be shared equally by the
companies. However, Regeneron owns the entire US rights
pertaining to the eye drug.
We have a Neutral stance on Regeneron, which carries a Zacks Rank
#2 (Buy) in the short run. Biopharma stocks, which appear to be
more favorably placed, include
). The stock carries a Zacks Rank #1 (Strong Buy).
PEREGRINE PHARM (PPHM): Free Stock Analysis
REGENERON PHARM (REGN): Free Stock Analysis
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