Regeneron Pharmaceuticals posted second-quarter results that beat analyst forecasts, supported by solid demand for its eczema medication Dupixent and increased volumes of an 8-mg version of its eye treatment Eylea. The company’s shares rose nearly 5% in pre-market trading following the release.
Sales highlights
- Global net sales of Dupixent - as reported by partner Sanofi - rose 38% to about $6 billion, topping the LSEG estimate of $5.34 billion.
- U.S. quarterly sales of the high-dose version of Eylea were up 52% to $596 million, driven by higher demand and increased sales volumes, although those gains were partly offset by lower prices.
- Regeneron said sales of the lower‑dose version of Eylea were pressured by ongoing competition and by patients transitioning to the 8-mg formulation.
Financial and corporate items
Overall quarterly revenue climbed 17% to $4.29 billion, exceeding the consensus estimate of $3.82 billion. On the profitability front, the Tarrytown, New York-based drugmaker reported a non-GAAP adjusted earnings per share of $14.29, ahead of analysts' expectations of $10.26.
The company also disclosed that it has fully repaid the Sanofi Development Balance, the remaining amount owed to Sanofi for funding previous collaborative development activities. Management and market analysts noted that the repayment should support a step-up in margins.
Analyst view
RBC Capital Markets analyst Brian Abrahams commented that Regeneron’s marked commercial outperformance could help lift investor sentiment. He added that, combined with margin improvement resulting from the Sanofi repayment, the company’s performance in the second half of the year should appear stronger.
Implications
The quarter’s results reflect a mix of product-specific dynamics: continued strength in Dupixent’s global sales, rapid adoption of a higher-dose Eylea formulation in the U.S., and competitive pressure on lower-dose Eylea volumes. The Sanofi repayment is an explicit, non-operational improvement to the company’s margin profile for future periods.
Note: All figures reported above are as provided by the company and market data referenced in the quarter’s release.