Regeneron Investors Cheer Q3 Earnings Beat, Eylea Growth

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Regeneron Pharmaceuticals Inc. (NASDAQ: REGN) reported its third-quarter financial results before the markets opened on Friday. The company posted $3.13 in earnings per share (EPS) on $1.22 billion in revenue. The consensus estimates from Thomson Reuters had called for $2.71 in EPS and $1.29 billion in revenue. The third-quarter of last year reportedly had EPS of $3.47 and revenue of $1.14 billion.

In the third quarter of 2016, net sales of Regeneron’s key product, Eylea, in the United States increased 16% to $854 million from $734 million in the third quarter of 2015. Bayer commercializes Eylea outside the United States, and this international segment had net sales of $471 million, compared to $371 million last year.

In terms of guidance for the full year, the company expects Eylea U.S. net product sales to grow by 23% to 25%, up from the previously guided range of 20% to 25%. The consensus estimates are $10.96 in EPS and $5.06 billion in revenue for 2016.

On the books, Regeneron cash and marketable securities totaled $2.19 billion at the end of the quarter, up from $1.68 billion at the end of 2015.

Leonard S. Schleifer, M.D., Ph.D., president and CEO of Regeneron, commented:

In the third quarter, we saw continued U.S. sales growth with EYLEA in retinal diseases and with Praluent in hypercholesterolemia. We are preparing for a potential approval and launch for Dupixent in atopic dermatitis and continuing to advance our pipeline at all stages.

Excluding Friday’s move, Regeneron has underperformed the broad markets, with the stock down 38% year to date. Over the past 52 weeks, the stock is down even further at 40%.

Shares of Regeneron traded up 3% after the earnings were released to$346.01. The consensus analyst price target is $466.10, and the 52-week trading range is $325.35 to $592.59.

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