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Regeneron Raises Eylea Sales Forecast; Shares Surge (REGN)

Regeneron Pharmaceuticals Inc. (NASDAQ: REGN), an integrated biopharmaceutical company engaged in the discovery, development, manufacturing and commercialization of medicines for the treatment of serious medical conditions, today, raised its 2012 sales forecast for Eylea, its recently approved eye drug. The upward revision sent REGN shares sharply higher in trading today.

REGN shares touched a new 52-week high of $145.04 in trading today before paring some of the early gains. At last check, REGN shares were trading 9.24% higher at $138.85 on above average volume of 2.52 million.

Regeneron said that it now expects 2012 Eylea sales to come in between $500 million and $550 million, compared with previous forecast of $250-$300 million. This is the second time this year that REGN has raised the sales forecast for Eylea. The drug was approved in November for the treatment of a form of macular degeneration, which is a common cause of blindness in the elderly. It now accounts for more than half of REGN’s total revenue.

In a research note to clients, Phil Nadeau, analyst at Cowen and Co., said that investors were expecting an increasing in 2012 Eylea guidance to the $400 million range.

Meanwhile, the Tarrytown, New York-based company also released its first-quarter 2012 financial results. For the quarter ended March 31, 2012, REGN reported total revenue of $232 million, which include Eylea product sales of $124 million.

REGN’s non-GAAP net income for the quarter was $40 million, or $0.37 per diluted share. GAAP net income for the quarter was $12 million, or $0.11 per diluted share.

Commenting on first-quarter results, Leonard S. Schleifer, M.D., Ph.D., President and CEO of Regeneron, said that the first quarter was a true milestone for REGN as it was the first time in the company’s history that it achieved profitability as a result of product sales. Schleifer further said that the success was driven by strong Eylea launch.


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