Regeneron Exceeds Profit Forecasts Thanks to Dupixent

• Dupixent sales rose 34% to $4.9 billion in the quarter, meeting analyst expectations and offsetting pressure on other product lines
• Eylea sales fell 28% to $1.1 billion, missing estimates of $1.25 billion due to competition from cheaper versions and rival treatments like Roche's Vabysmo
• Regeneron reported adjusted profit of $11.44 per share on total revenue of $3.88 billion, beating the $3.80 billion estimate, while facing patent expiration concerns for Dupixent beginning in 2031

Summary: Regeneron Exceeds Profit Forecasts Thanks to Dupixent

Key Financial Results:

Regeneron Pharmaceuticals surpassed fourth-quarter profit estimates, reporting adjusted earnings of $11.44 per share and total quarterly revenue of $3.88 billion versus the $3.80 billion estimate.

Main Products:

• Dupixent (eczema treatment, co-developed with Sanofi): Sales surged 34% to $4.9 billion, meeting analyst expectations. The drug has emerged as Regeneron's critical growth driver, though it faces patent expiration beginning in 2031.
• Eylea (eye disease drug): Sales plummeted 28% to $1.1 billion, missing the $1.25 billion estimate due to competition from cheaper alternatives and rivals like Roche's Vabysmo.
• Libtayo (cancer treatment): Generated $425 million in sales, exceeding the $375.68 million estimate.

Regulatory and Manufacturing Updates:

Regeneron has faced setbacks at the Catalent facility (now operated by Novo Holdings), causing delays in three FDA applications for Eylea. The FDA has approved a new manufacturer for the high-dose version, with a decision on applications expected in Q2 next year.

Market Implications:

Investors are monitoring several key issues: Dupixent's patent cliff concerns, Regeneron's potential agreement with the Trump administration on prescription drug pricing (following similar deals by other drugmakers), and the company's ability to offset declining Eylea revenues. Sanofi's CFO indicated the company cannot fully offset Dupixent's future patent losses, adding pressure on both partners to develop new revenue streams.