Analyst Conference Summary

Biotechnology

conference date: February 6, 2019 @ 5:00 AM Pacific Time
for quarter ending: December 30, 2019 (Q4, fourth quarter 2019)

Forward-looking statements

Overview: Strong revenue growth. Note large difference between GAAP and non-GAAP profit numbers.

Basic data (GAAP):

Revenue was $2.17 billion, up 6% sequentially from $2.05 billion and up 13% from $1.93 billion in the year-earlier quarter.

Net income was $792 million, up 18% sequentially from $670 million, and down 2% from $820 million year-earlier.

Diluted Earnings Per Share (EPS) was $6.93, up 18% sequentially from $5.86 and down 3% from $7.15 year-earlier.

Guidance:

None due to negotiations with Sanofi.

Expects R&D expense to increase in 2020.

Conference Highlights: Continued rapid revenue growth plus pipeline plus share buybacks.

Leonard S. Schleifer, CEO, said "In 2020, we are focused on driving continued growth with EYLEA, Dupixent, and Libtayo and anticipate several new regulatory approvals and submissions across our portfolio."

Working with Sanofi to finalize a modified antibody agreement for Praluent and Kevzara, which is expected to be accretive in 2020.

Revenue by type: product sales $ billion. Sanofi collaboration revenue $ million. Bayer collaboration revenue $ million. Other income $ million.

Dupixent sale by Sanofi hit $ million. Believes Dupixent in the field is showing advantages in effectiveness and safety over competitors.

In the coming years expects to bring an extensive line of bispecific antibodies to the clinic. Believes has advantages over competitors for these, as well as for the PD1 antibody (Libtayo).

Non-GAAP results: net income $858 million, up 13% sequentially from $762 million and up 9% from $786 million year earlier. Diluted EPS $7.50, up 12% sequentially from $6.67 and up 10% from $6.84 year-earlier.

Fasinumab for pain due to osteoarthritis Phase 3 study reported positive results in Q3 2019. A Phase 3 study for chronic lower back pain continued. But moving forward only with the lower-dose regimen.

In Q3 Entered into a collaboration with Bluebird Bio for combinations with CART therapies. Includes buying $100 million worth of BLUE stock.

Has moved four bispecifics, to the clinic this year. REGN4018 (MUC16 and CD3) has shown encouraging results so far in platinum-resistant ovarian cancer.

REGN1979 Phase 2 trial in advanced follicular lymphoma started in Q2, 2019, is being followed by a cohort of DLBCL.

REGN2477 for FOP (fibrodysplasia ossificans progressiva) continues Phase 2 study.

REGN3500 Phase 2 program for asthma had positive results, but not better than Dupixent. Studies for COPD, and atopic dermatitis should present results later in 2019. Could be complementary to Dupixent. Partnered with Sanofi.

In April 2019, Regeneron entered into a collaboration with Alnylam (ALNY) to discover, develop, and commercialize new RNA interference, or RNAi, therapeutics for diseases of the eye, central nervous system, and targets expressed in the liver.

See also the Regeneron Pipeline.

Cash and equivalents balance ended at $ billion, up sequentially from $5.99 billion. No long term debt.

GAAP expenses of $ billion consisted of: cost of goods sold $ million; research and development $ billion; selling, general and administrative $ million; collaboration manufacturing costs $ million. Leaving income from operations of $ million. Interest and other net income was $ million. Income tax was $ million.

Q&A summary:

Not available yet due to my time constraints.

OpenIcon Analyst Conference Summaries Main Page

Search

More Analyst Conference Pages: