Regeneron Pharmaceuticals (NASDAQ:REGN) topped Street forecasts with its Q4 2022 financials on Friday as the company posted better than expected sales for its COVID-19 antibody therapy REGEN-COV despite a dismal performance in its blockbuster eye disease therapy Eylea.
Revenue for the quarter dropped ~31% to $3.4B, while full-year revenue fell ~24% YoY to $12.2B as the waning pandemic impact hurt the sales contribution from REGEN-COV, known as Ronapreve overseas.
However, excluding REGEN-COV, Regeneron (REGN) reported ~14% YoY and ~17% rise in revenue for the quarter and full year, respectively.
Net product sales fell ~21% YoY to $1.8B for the quarter, while collaboration revenue jumped ~78% YoY to $1.6B, driven by ~61% YoY growth in Sanofi (SNY) (OTCPK:SNYNF) collaboration revenue.
Eylea sales dropped ~4% to $2.3B falling short of Street forecasts, while REGEN-COV, which is currently not authorized in the U.S. due to concerns over efficacy, topped expectations bringing ~$1.1B sales thanks to overseas demand.
Regeneron (REGN) said that a short-term shift to off-label use of VEGF inhibitor Avastin from Roche (OTCQX:RHHBY) (OTCQX:RHHBF) and a temporary shutdown of a fund that provided co-pay assistance to patients negatively impacted U.S. Eylea results in Q4 2022.
A marketing application for a high-dose version of Eylea is currently under FDA review, with a decision expected in Q3 2023 for wet AMD and Diabetic Macular Edema.
Sanofi (SNY)-partnered atopic dermatitis Dupixent added ~$2.4B net sales to the topline with ~38% YoY growth, slightly missing expectations.
Meanwhile, the adjusted earnings per share for Q4 and the full year reached $12.56 and $44.98 with ~46% YoY and ~40% decline, respectively, as an acquired IPR&D charge adversely impacted the bottom line.
Regeneron (REGN) launched its 2023 guidance with highlights including a 90% – 92% adj. gross margin on net product sales and $4.2B – $4.4B for GAAP R&D expenses.
Read: Seeking Alpha contributor ONeil Trader explains why early Eylea U.S. net sales the company shared in January “were below expectations.”
CharlieAJA