Regeneron third-qtr net profit plunges despite strong sales growth

US biotech firm Regeneron (Nasdaq: REGN) posted revenue of $725.8 million for the third quarter of 2014, a rise of 22% on the like year-earlier period, topping Wall Street forecasts. Analysts expected $719.9 million, according to Zacks Equity Research.

However, net profit for the quarter fell 43% to $79.7 million, or $0.70 per share. Excluding special items, Regeneron earned $295 million, or $2.52 per share, below the average analyst estimate of $2.57 per share, according to Thomson Reuters. The company's shares fell 7.6% to $365 in premarket trading on Tuesday, having increased 44% since the beginning of the year.

Third quarter sales were almost entirely generated by ophthalmic drug Eylea (aflibercept) Injection and increased 48% to $722 million (consisting of $445 million in the USA, up 23%, and $277 million in rest of world) versus third quarter 2013. Eylea is co-marketed by German pharma major Bayer (BAYN: DE), which posted third-quarter sales of the drug up 122.4% to 189 million euros ($232.5 million).