Regeneron Pharmaceuticals Inc(NASDAQ: REGN) stock lost over 0.4% on August 3rd, 2017 (As of 11:35AM EDT; Source: Google finance) after a positive start.
On the other hand, EYLEA® (aflibercept) Injection U.S. net sales in the Second quarter of 2017 rose 11% yoy to $919 million while EYLEA global net sales rose 11% yoy to $1.46 billion. Moreover, they even enhanced full year of 2017 estimates for EYLEA U.S. net sales and expects a growth of over 10% as compared to the prior corresponding year. Kevzara® (sarilumab) also got approved by FDA and European Commission for adults with moderately to severely active rheumatoid arthritis. Expanding reach EYLEA to more patients with retinal diseases, drove their overall performance.
Regeneron also made two major launches – Dupixent for moderate-to-severe atopic dermatitis and Kevzara for moderately to severely active rheumatoid arthritis during the period. Dupixent U.S. launch got good response and accordingly for the second half of the year, the group expects an EU approval for Dupixent in atopic dermatitis. They also expect Phase 3 study results and a potential U.S. regulatory submission for Dupixent in uncontrolled asthma in the second half.
Regeneron made a clinical study agreement with Inovio Pharmaceuticals, Inc. and SillaJen, Inc. to evaluate REGN2810 in combination with their respective product candidates during the quarter. But, the group’s Antibody Discovery Agreement with Sanofi will not get extension and end this year. Praluent (anti-PCSK9), Dupixent (anti-IL-4R), Kevzara (anti-IL-6R), REGN2810 (anti-PD-1), REGN3500 (anti-IL-33), and REGN3767 (anti-LAG-3) were discovered and initially developed under the Antibody Discovery Agreement. REGN2810 and REGN3767 would be developed with Sanofi under the immuno-oncology collaboration. The group expects a $130 million annual funding for 2017 from Sanofi under the Antibody Discovery Agreement which would be fully used by the end of the third quarter of 2017.
Regeneron’s GAAP net income rose 98% yoy to $388 million, or $3.34 per diluted share during the second quarter of 2017, against the GAAP net income of $196 million, or $1.69 per diluted share, in the Prior corresponding period. Non-GAAP net income rose 48% yoy to $487 million, or $4.17 per diluted share, in the second quarter of 2017, against non-GAAP net income of $329 million, or $2.82 per diluted share, in the same period last year.
For full year of 2017, EYLEA U.S. net product sales growth is expected to be 10% against pcp. But Sanofi reimbursement of Regeneron commercialization-related expenses is expected to be in the $370 million – $400 million range as compared to earlier forecast of $385 million – $425 million range. The group cut their Capital expenditures to $250 million – $285 million range from the earlier guidance of $300 million – $350 million.