Jun 30, 2022

Regeneron Q2 2022 Earnings Report

Regeneron's Q2 2022 earnings declined due to decreased REGEN-COV® sales, but core business showed growth, with record net product sales of EYLEA, Dupixent, and Libtayo and multiple regulatory approvals for Dupixent.

Key Takeaways

Regeneron reported a 44% decrease in revenue to $2.86 billion for Q2 2022, primarily due to the absence of REGEN-COV® sales. Excluding REGEN-COV®, revenue increased by 20%. The company saw record net product sales for EYLEA, Dupixent and Libtayo. GAAP diluted EPS was $7.47, while non-GAAP diluted EPS was $9.77, including an unfavorable impact from acquired IPR&D charges.

Second quarter revenues decreased 44% to $2.86 billion, but excluding REGEN-COV, revenues increased 20%.

EYLEA U.S. net sales increased 14% to a record $1.62 billion.

Dupixent global net sales increased 40% to $2.09 billion.

FDA approved Dupixent for atopic dermatitis in children aged 6 months to 5 years and eosinophilic esophagitis in adults and adolescents.

Total Revenue
$2.86B
Previous year: $5.14B
-44.4%
EPS
$9.77
Previous year: $25.8
-62.1%
Gross Profit
$2.56B
Previous year: $4.44B
-42.4%
Cash and Equivalents
$3.4B
Previous year: $7.81B
-56.5%
Total Assets
$27.2B
Previous year: $21.5B
+26.6%

Regeneron

Regeneron

Regeneron Revenue by Segment

Regeneron Revenue by Geographic Location

Forward Guidance

Regeneron updated its full-year 2022 financial guidance primarily to reflect the recently completed acquisition of Libtayo global rights from Sanofi.

Positive Outlook

  • Advancing pipeline with important clinical data readouts in oncology and ophthalmology
  • Continued commercial execution
  • Prudent capital allocation to drive value creation for shareholders
  • Gross margin on net product sales between 90% and 91%
  • Non-GAAP gross margin on net product sales between 92% and 93%

Challenges Ahead

  • R&D expenses between $3.485 billion–$3.655 billion
  • Non-GAAP R&D expenses between $3.100 billion–$3.240 billion
  • SG&A expenses between $1.990 billion–$2.110 billion
  • Non-GAAP SG&A expenses between $1.740 billion–$1.840 billion
  • COCM expenses between $710 million–$760 million