GuruFocus -
- Total Revenue: $3.72 billion, up 11% year-over-year.
- Net Income per Share: $12.46, an 8% increase from the prior year.
- DUPIXENT Global Revenue: $3.8 billion, a 24% increase on a constant currency basis.
- EYLEA HD and EYLEA Net Sales: $1.54 billion, a 3% year-over-year increase.
- Libtayo Global Net Sales: $289 million, a 24% increase year-over-year on a constant currency basis.
- Sanofi (EPA:SASY) Collaboration Revenue: $1.3 billion, with collaboration profitability reaching an all-time high.
- R&D Expense: $1.1 billion, driven by investments in the pipeline and clinical manufacturing costs.
- SG&A Expense: $613 million, a 15% increase from the prior year.
- Gross Margin on Net Product Sales: 89%, down from 90% in the prior year.
- Free Cash Flow: Approximately $2.6 billion through the first nine months of 2024.
- Cash and Marketable Securities Less Debt: Approximately $15.6 billion at the end of the quarter.
- Share Repurchases: Over $1.6 billion repurchased through the first nine months of 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Regeneron Pharmaceuticals Inc (NASDAQ:REGN) reported an 11% increase in total revenues for the third quarter of 2024, reaching $3.72 billion.
- DUPIXENT achieved global revenues of $3.8 billion, marking a 24% increase on a constant currency basis, with over 1 million patients currently on treatment.
- EYLEA HD and EYLEA combined net product sales were $1.54 billion, with EYLEA HD showing a 29% sequential growth in the quarter.
- The company is advancing a robust pipeline with approximately 40 programs in clinical development, spanning various therapeutic areas.
- Regeneron Pharmaceuticals Inc (NASDAQ:REGN) has a strong balance sheet with approximately $15.6 billion in cash and marketable securities less debt, and generated $2.6 billion in free cash flow through the first nine months of 2024.
- EYLEA HD and EYLEA net sales were impacted by inventory fluctuations, with a $40 million favorable impact in the third quarter expected to negatively affect fourth-quarter sales.
- The anti-VEGF category, including EYLEA, faces significant pricing pressure due to competition from branded and biosimilar products.
- Regeneron Pharmaceuticals Inc (NASDAQ:REGN) anticipates ongoing competitive challenges in the anti-VEGF category, including the entry of biosimilars.
- The company faces potential erosion of market share for EYLEA due to the launch of biosimilars, although the impact is yet to be fully determined.
- Regeneron Pharmaceuticals Inc (NASDAQ:REGN) has not provided specific guidance on the conversion rate from EYLEA to EYLEA HD, indicating uncertainty in market dynamics.
A: Leonard Schleifer, CEO: EYLEA is a fantastic product with a strong track record of safety and performance. We believe EYLEA HD is differentiated, and we are focusing on educating doctors about its benefits. Despite the competitive landscape, we are confident in our ability to compete effectively.
Q: Can you reiterate your confidence in EYLEA HD quarter-over-quarter growth going into Q4 despite the negative impact due to wholesaler inventory?
A: Marion McCourt, EVP Commercial: We have strong confidence in EYLEA HD's profile and the interest from the retina community. However, we did see an inventory impact in Q3, which will affect Q4. We are confident in EYLEA HD's performance and expect continued growth.
Q: Can you talk about the potential inflection in use that the HD prefilled syringe could catalyze next year?
A: Leonard Schleifer, CEO: We anticipate bringing the prefilled syringe to market by mid-next year, which could lead to an inflection in use due to physician preference for prefilled syringes. We are ensuring it meets high safety standards to avoid issues like inflammation.
Q: How are you thinking about the pace of R&D investments going forward or your capital allocation priorities?
A: Leonard Schleifer, CEO: We are focused on bringing innovative products to market and will continue to invest in our robust pipeline. We have a strong balance sheet and earnings to support significant investments, and we are committed to driving long-term growth.
Q: Can you elaborate on the drivers for the pricing pressure noted for EYLEA HD and whether these pressures are ongoing?
A: Marion McCourt, EVP Commercial: Pricing pressure is a factor across the anti-VEGF category, but EYLEA HD's clinical profile, safety, and durability are key differentiators. We expect the category to grow in the mid-single-digit range, and we are well-positioned to compete successfully.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.