Regeneron (REGN.US) Surges in Pre-Market Trading as Eylea Drives Q2 Earnings Beat

Intelligent Finance APP learned that Regeneron Pharmaceuticals, Inc. (REGN.US) stock price once increased over 7% before the U.S. stock market opened on Thursday. The company announced better-than-expected overall financial status for the second quarter of 2023 before the market opened and indicated that the FDA might make a decision on the large-dose version of its blockbuster ophthalmic disease treatment drug Eylea this quarter. In the second quarter, the company's key performances exceeded Wall Street analysts' expectations. Its total sales increased by about 11% year-over-year to approximately $3.2 billion, benefiting from the net sales revenue growth of all its products by about 1% year-over-year and the collaborative revenue growth by about 26% year-over-year, reaching $1.8 billion and $1.3 billion respectively.

Despite a year-over-year decrease of approximately 4%, the sales performance of its primary revenue driver, Eylea, still exceeded market expectations, contributing to a global net sales increase of $2.4 billion. However, the drug's net sales in the U.S. market declined by about 8% year-over-year to $1.5 billion, which did not prevent the global sales from surpassing growth expectations. Meanwhile, Dupixent, a treatment for atopic dermatitis co-developed by Regeneron and Sanofi, generated approximately $2.8 billion in net product sales, reflecting a year-over-year growth of about 33%.

Regeneron's net product sales of skin cancer drug Libtayo, rheumatoid arthritis drug Kevzara, and heart disease drug Praluent reached approximately $210 million, $99.5 million, and $140.3 million, respectively, with year-over-year growth of about 49%, 21%, and 29%. The global market net sales of the blockbuster drug Dupixent, co-developed with Sanofi, increased by 33% to $2.79 billion.

Meanwhile, Regeneron reported a net profit of $968.4 million, an increase of approximately 14% year-over-year, and narrowed its full-year GAAP guidance for R&D and SG&A expenses to $4.3-$4.5 billion and $2.5-$2.7 billion, respectively.

In June this year, the regulatory authority rejected aflibercept injectable with a dosage of 8 mg from the company, citing production issues at its contract manufacturer Catalent (CTLT.US). Regeneron stated that it plans to submit additional regulatory data required by the FDA before mid-August and expects regulators to make a decision on its marketing application in the third quarter of 2023.