Is Regeneron Making the Case to Buy With Q3 Earnings?
Regeneron Pharma reported its third-quarter financial results before the markets opened on Thursday.
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Regeneron Pharmaceuticals Inc. (NASDAQ: REGN | REGN Price Prediction) reported its third-quarter financial results before the markets opened on Thursday. While the earnings were important, and fairly positive, more investors seemed interested in the COVID-19 update.
In terms of the results, the company said that it had $8.36 in earnings per share (EPS) and $2.29 billion in revenue. That compared with consensus estimates of $7.13 in EPS and $2.09 billion in revenue, as well as the $6.67 per share and $2.05 billion posted in the same period of last year.
As for the COVID-19 update, Regeneron achieved an important milestone in the fight against COVID-19 with prospective Phase 2/3 results showing REGN-COV2 significantly reduced virus levels and the need for further medical attention in non-hospitalized patients. Also, the REGN-COV2 trial in the COVID-19 outpatient setting met primary and key secondary endpoints.
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In terms of its product revenues, Eylea net product sales in the United States increased to $1.318 billion in the third quarter of 2020, compared to $1.188 billion in the third quarter of 2019.
Results also include Sanofi and Bayer collaboration revenues of $653 million, an increase from $469 million last year. Collaboration revenue increased primarily due to the company’s share of profits from commercialization of antibodies, which increased to $213 million this quarter.
Other revenues in the quarter include recognition of revenue in connection with agreements regarding BARDA and the funding of certain REGN-COV2 and Inmazeb development activities.
On the books, Regeneron’s cash and marketable securities totaled $5.90 billion at the end of the quarter, down from $6.47 billion at the end of the previous year.
Regeneron stock traded down fractionally on Thursday at $585.34, in a 52-week range of $325.62 to $664.64. The consensus price target is $674.33.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
