Regeneron Pharmaceuticals reported stronger-than-expected fourth-quarter results on Tuesday, driven by robust demand for its eczema treatment, Dupixent. The company also revealed the launch of a dividend program and a stock buyback initiative, which caused its shares to rise by 2.2% in premarket trading.
U.S. sales of Eylea, Regeneron’s longstanding revenue driver, grew by 2% to $1.5 billion, with $305 million coming from the higher 8-milligram dose. However, analysts had projected total Eylea sales of $1.77 billion, according to LSEG data. Developed in partnership with Bayer AG, Eylea faces increasing competition from biosimilars and drugs like Roche’s Vabysmo. Roche recently forecasted strong demand for Vabysmo, which could further challenge Eylea’s market position.
Regeneron is focused on transitioning current Eylea users to the higher-dose version. The company noted that Eylea’s total sales were bolstered by approximately $85 million due to higher wholesaler inventory levels. However, the higher-dose version experienced some setbacks due to reduced inventory levels and a lower net selling price compared to the previous year.
The Tarrytown, New York-based biotech firm also announced the initiation of a quarterly cash dividend program, starting with 88 cents per share, payable on March 20. In addition, Regeneron revealed a $3 billion share repurchase program, increasing its total buyback capacity to around $4.5 billion.
Regeneron’s total revenue for the quarter was $3.79 billion, surpassing analysts’ expectations of $3.75 billion, according to LSEG-compiled data.
Sales of Dupixent, the company’s anti-inflammatory drug, rose by 15% to $3.7 billion. While Sanofi records Dupixent’s sales, the profits are split equally between the two companies. Additionally, Regeneron’s skin cancer treatment, Libtayo, generated $366.9 million in sales, exceeding estimates of $333.5 million. Regeneron acquired the global rights to Libtayo from Sanofi in 2022.
For the quarter, Regeneron posted an adjusted profit of $12.07 per share, beating analysts’ consensus estimate of $11.28 per share.
Related topics
