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Regeneron (REGN) Down 7.5% Since Last Earnings Report: Can It Rebound?

A month has gone by since the last earnings report for Regeneron (REGN). Shares have lost about 7.5% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Regeneron due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Regeneron Q4 Earnings, Sales Beat on Solid Dupixent Show

Regeneron reported fourth-quarter earnings of $9.53 per share, which comfortably beat the Zacks Consensus Estimate of $8.32 and increasing from $7.50 in the year-ago quarter.

Total revenues in the reported quarter increased 30% year over year to $2.42 billion and beat the Zacks Consensus Estimate of $2.39 billion. The year-over-year growth was driven by strong Dupixent sales.

Quarterly Highlights

Net product sales increased to $1.6 billion in the quarter under review, up from $1.3 billion in the year-ago quarter.  Lead drug Eylea’s sales in the United States were $1.3 billion compared with $1.2 billion in the year-ago quarter.

We note that Regeneron co-developed Eylea with the HealthCare unit of Bayer AG. The company is solely responsible for sales of this eye drug and entitled to profits in the United States. However, it shares profits and losses from the ex-U.S. Eylea sales equally with Bayer, except in Japan where the company receives a royalty on net sales.

Total revenues also included Sanofi and Bayer’s collaboration revenues of $678 million compared with $482 million in the year-earlier quarter. The increase was primarily owing to higher net product sales of Dupixent.

Notably, Regeneron records net product sales of Libtayo in the United States. Sanofi records net product sales of Libtayo outside the country and global net product sales of Dupixent, Kevzara and Zaltrap. Regeneron records its share of profits/losses in connection with sales of Libtayo outside the United States, and global sales of Dupixent and Kevzara within collaboration revenues.

Dupixent’s sales were $1.2 billion, up from $751.5 million in the year-ago quarter.  Libtayo sales came in at $97.3 million, up from $74.7 million in the year-ago quarter.  Kevzara recorded sales of $71.5 million, up from $59.7 million in the year-earlier quarter.

Praluent’s global net sales totaled $100.9 million in the reported quarter, up from $81.4 million in the prior-year quarter.

REGEN-COV, its antibody cocktail for COVID-19, recorded sales of $145.5 million in the quarter.

R&D expenses increased to $675.4 million from $450 million, while SG&A expenses grew to $380.7 million during the quarter from $311.2 million in the year-ago quarter.

2020 Results

Revenues came in at $8.5 billion, up 30% from 2019. Earnings per share came in at $31.47, up from $24.67 in 2019 and beat the Zacks Consensus Estimate of $30.38.

COVID-19 Update

In early February 2021, the European Medicines Agency (EMA) announced that it has commenced a rolling review of data for the casirivimab and imdevimab antibody cocktail.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended upward during the past month.


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