Regeneron Stock Breaks Out As Covid Drug Wrangles $1 Billion Beat

Regeneron stock broke out Thursday after the company’s Covid treatment beat sales estimates by $1 billion in the U.S., helping product revenue surge by triple digits.




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The biotech company makes a two-drug cocktail that uses antibodies to treat Covid in some patients. During the second quarter, the antibody combination generated $3.06 billion in overall sales. U.S. sales were $2.59 billion, well above forecasts for $1.51 billion, Piper Sandler analyst Christopher Raymond said in a report to clients.

Regeneron Pharmaceuticals (REGN) had little insight into the remainder of 2021. The company still has $34 million worth of drugs to deliver to the U.S. government in the third quarter. But fourth-quarter sales will be “dependent upon acceleration of Covid-19 cases and related drug utilization,” Regeneron said in a news release.

On the stock market today, Regeneron stock rose 3.7% to 602.47.

Regeneron Stock Rises On Earnings Beat

During the second quarter, adjusted Regeneron earnings were $25.80 per share on $5.14 billion in sales. Earnings soared 260% and easily beat forecasts for 17.94 a share. Sales topped Regeneron stock analysts’ expectations for $1.95 billion and surged 163% year over year.

Excluding the impact of the Covid antibody treatment, sales grew 22%.

Importantly, Regeneron’s Eylea brought in $1.42 billion in U.S. sales, growing about 28% year over year. That beat forecasts for $1.37 billion, Piper Sandler’s Raymond said. Outside the U.S., the eye-disease treatment generated $903.8 million. Bayer (BAYRY) records those sales.

Regeneron also recorded $78 million in U.S. sales of cancer drug Libtayo, up more than 23%. That missed expectations by $2 million. But global sales of $116.9 million topped views, Raymond said. Sanofi (SNY) records Libtayo sales outside the U.S. There, Libtayo generated $38.9 million in sales.

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Collaboration Revenue Grows

Sales of eczema and asthma drug Dupixent also “soundly beat,” Raymond said. Global sales popped 59% to nearly $1.5 billion. Sanofi also records those sales.

In exchange for those collaboration agreements, Sanofi paid Regeneron $437.7 million, up more than 63% year over year. Bayer and Roche paid Regeneron a respective $349.1 million and $167.9 million. Roche (RHHBY) partners with Regeneron on the Covid treatment antibodies.

For the year, Regeneron gave some positive forecasts, but no specifics on earnings or sales guidance. Regeneron stock analysts called for adjusted profit of $49.46 a share and $12.24 billion in sales.

Regeneron stock topped a buy point at 595.58 out of a cup-with-handle base, according to MarketSmith.com.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.

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View more information: https://www.investors.com/news/technology/regeneron-stock-regeneron-earnings-q2-2021/

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