Regeneron revenues leap on Eylea progress

US biotech firm Regeneron Pharmaceuticals (Nasdaq: REGN) saw its shares fall 4% to $260 in pre-market trading today (August 6), despite reporting total revenues of $458 million (up 50.7%) in the second quarter of 2013 and $897 million (plus 67.4%) in the first half of 2013.

The company reported non-Generally Accepted Accounting Principles (GAAP) net income of $198 million, or $1.73 per diluted share, in the second quarter and $398 million or $3.50 per diluted share, in the first half of 2013, compared to $102 million, or $0.90 per diluted share, in the second quarter and $142 million, or $1.28 per diluted share, in the first half of 2012.  Analysts surveyed by FactSet expected, on average, second-quarter earnings of $1.81 per share on $474.3 million in revenue.

Non-GAAP net income excludes non-cash share-based compensation expense, non-cash interest expense related to the Company's convertible senior notes, and non-cash income taxes. The company reported GAAP net income of $87 million, or $0.79 per diluted share, in the second quarter and $186 million, or $1.69 per diluted share, in the first half of 2013, compared to $77 million, or $0.70 per diluted share, in the second quarter and $88 million, or $0.81 per diluted share, in the first half of 2012.
Regeneron’s revenues and net income in both the second quarter and first half of 2013 were
reduced by two $10 million up-front payments made to French drug major Sanofi (Euronext: SAN) to acquire full rights to antibodies to PDGF and antibodies to Ang2 in ophthalmology. In the second quarter of 2013, Sanofi recorded worldwide net sales of colorectal cancer drug Zaltrap (ziv-aflibercept) of $19 million, compared to $14 million in the first quarter of 2013.