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Regeneron (REGN) to Report Q3 Earnings: What's in the Cards?
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Regeneron Pharmaceuticals, Inc. (REGN - Free Report) is scheduled to release third-quarter 2023 results on Nov 2, before the opening bell.
The company has an impressive track record, with an earnings streak in all the past four quarters. In the last reported quarter, it beat earnings expectations by 3.23%. REGN surpassed earnings estimates by 14.23%, on average, in all the trailing four quarters.
Regeneron Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
A major chunk of Regeneron’s revenues come from the sales of its lead drug, Eylea, which is approved for various ophthalmology indications (neovascular age-related macular degeneration, diabetic macular edema [“DME”] and macular edema, among others). Eylea was developed in collaboration with Bayer AG.
Regeneron records net product sales of Eylea in the United States, while Bayer records net product sales of the drug outside the country. Regeneron also records its share of profits/losses in connection with sales of Eylea outside the United States.
However, Eylea’s sales have been under pressure in the last few quarters due to competition from Avastin, Vabysmo and sale deductions. The third quarter is likely to have seen the same trend. The Zacks Consensus Estimate for Eylea’s sales in the United States is pegged at $1.55 billion.
In August 2023, the FDA finally approved aflibercept 8 mg for the treatment of patients with wet age-related macular degeneration, DME and diabetic retinopathy under the brand name Eylea HD.
Incremental revenues from Eylea HD have most likely boosted sales.
Apart from Eylea, investors will focus on the asthma drug Dupixent’s performance, sales of which are recorded by Sanofi (SNY - Free Report) . Regeneron has a collaboration agreement with Sanofi for drugs like Dupixent and Kevzara. While Sanofi records sales, Regeneron records its share of profits/losses in connection with the global sales of Dupixent and Kevzara. Profits from Dupixent sales have been REGN’s primary growth driver in the last few quarters.
Sales of Dupixent were up 32.8% in the third quarter, as recorded by Sanofi and hence Regeneron is likely to have recorded incremental profits in the yet-to-be-reported quarter.
Dupixent has maintained its stellar performance, driven by continued strong demand in the approved indications, atopic dermatitis, asthma, chronic rhinosinusitis with nasal polyposis, eosinophilic esophagitis and prurigo nodularis. The label expansion of the drug in the past few months has boosted sales further and is likely to have resulted in incremental revenues for Regeneron in the second quarter.
Investors will focus on the performance of Libtayo and the PCSK9 inhibitor Praluent. Effective Jul 1, 2022, Regeneron records net product sales of Libtayo and pays Sanofi a royalty on such sales. Increased sales of Libtayo for indications of non-melanoma skin cancer and strong growth in lung cancer have most likely boosted the top line. The Zacks Consensus Estimate for Libtayo’s sales is pegged at $216 million.
Regeneron records net product sales of Praluent in the United States. Sanofi records net product sales of the drug outside the United States and pays Regeneron a royalty on such sales.
Recent Updates
The FDA approved pozelimab-bbfg for the treatment of adult and pediatric patients 1 year of age and older with CHAPLE disease, also known as CD55-deficient protein-losing enteropathy. The candidate has been approved under the brand name Veopoz. Per Regeneron, Veopoz is the first and only treatment indicated specifically for CHAPLE, an ultra-rare hereditary disease that can cause potentially life-threatening gastrointestinal and cardiovascular symptoms.
In September, Regeneron acquired Decibel Therapeutics, Inc., strengthening the company’s gene therapy and auditory programs. The most advanced pipeline candidate is DB-OTO, which is currently being studied in the global phase I/II CHORD study. DB-OTO is an investigational cell-selective, adeno-associated virus gene therapy designed to provide durable, physiological hearing to individuals with profound, congenital hearing loss caused by mutations of the otoferlin gene. Preclinical programs include AAV.103 for people with GJB2-related hearing loss and AAV.104 for people with stereocilin-related hearing loss.
Share Price Performance
Regeneron’s shares have gained 9.8% year-to-date against the industry’s decline of 22.7%.
Image Source: Zacks Investment Research
What Our Model Predicts
Our proven model does not conclusively predict an earnings beat for Regeneron this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as you will see below.
Earnings ESP: Earnings ESP for REGN is -2.39% as the Zacks Consensus Estimate is currently pinned at $10.70 per share and the Most Accurate Estimate is pegged at $10.45 per share. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks to Consider
Here are some drug/biotech stocks that you may want to consider, as our model shows that they have the right combination of elements to post an earnings beat this season.
LGND topped earnings estimates in three of the last four quarters and missed in the remaining one, with an earnings surprise of 52.47%, on average. Ligand is scheduled to release third-quarter 2023 results on Nov 6.
Acadia Pharmaceuticals (ACAD - Free Report) has an Earnings ESP of +6.76% and a Zacks Rank #2.
Acadia beat earnings estimates in two of the trailing four quarters and missed in the remaining two. ACAD delivered an earnings surprise of 20.33%, on average. Year-to-date, shares of Acadia have gained 41.3%.
Image: Bigstock
Regeneron (REGN) to Report Q3 Earnings: What's in the Cards?
Regeneron Pharmaceuticals, Inc. (REGN - Free Report) is scheduled to release third-quarter 2023 results on Nov 2, before the opening bell.
The company has an impressive track record, with an earnings streak in all the past four quarters. In the last reported quarter, it beat earnings expectations by 3.23%. REGN surpassed earnings estimates by 14.23%, on average, in all the trailing four quarters.
Regeneron Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
Regeneron Pharmaceuticals, Inc. price-consensus-eps-surprise-chart | Regeneron Pharmaceuticals, Inc. Quote
Factors at Play
A major chunk of Regeneron’s revenues come from the sales of its lead drug, Eylea, which is approved for various ophthalmology indications (neovascular age-related macular degeneration, diabetic macular edema [“DME”] and macular edema, among others). Eylea was developed in collaboration with Bayer AG.
Regeneron records net product sales of Eylea in the United States, while Bayer records net product sales of the drug outside the country. Regeneron also records its share of profits/losses in connection with sales of Eylea outside the United States.
However, Eylea’s sales have been under pressure in the last few quarters due to competition from Avastin, Vabysmo and sale deductions. The third quarter is likely to have seen the same trend. The Zacks Consensus Estimate for Eylea’s sales in the United States is pegged at $1.55 billion.
In August 2023, the FDA finally approved aflibercept 8 mg for the treatment of patients with wet age-related macular degeneration, DME and diabetic retinopathy under the brand name Eylea HD.
Incremental revenues from Eylea HD have most likely boosted sales.
Apart from Eylea, investors will focus on the asthma drug Dupixent’s performance, sales of which are recorded by Sanofi (SNY - Free Report) . Regeneron has a collaboration agreement with Sanofi for drugs like Dupixent and Kevzara. While Sanofi records sales, Regeneron records its share of profits/losses in connection with the global sales of Dupixent and Kevzara. Profits from Dupixent sales have been REGN’s primary growth driver in the last few quarters.
Sales of Dupixent were up 32.8% in the third quarter, as recorded by Sanofi and hence Regeneron is likely to have recorded incremental profits in the yet-to-be-reported quarter.
Dupixent has maintained its stellar performance, driven by continued strong demand in the approved indications, atopic dermatitis, asthma, chronic rhinosinusitis with nasal polyposis, eosinophilic esophagitis and prurigo nodularis. The label expansion of the drug in the past few months has boosted sales further and is likely to have resulted in incremental revenues for Regeneron in the second quarter.
Investors will focus on the performance of Libtayo and the PCSK9 inhibitor Praluent. Effective Jul 1, 2022, Regeneron records net product sales of Libtayo and pays Sanofi a royalty on such sales. Increased sales of Libtayo for indications of non-melanoma skin cancer and strong growth in lung cancer have most likely boosted the top line. The Zacks Consensus Estimate for Libtayo’s sales is pegged at $216 million.
Regeneron records net product sales of Praluent in the United States. Sanofi records net product sales of the drug outside the United States and pays Regeneron a royalty on such sales.
Recent Updates
The FDA approved pozelimab-bbfg for the treatment of adult and pediatric patients 1 year of age and older with CHAPLE disease, also known as CD55-deficient protein-losing enteropathy. The candidate has been approved under the brand name Veopoz. Per Regeneron, Veopoz is the first and only treatment indicated specifically for CHAPLE, an ultra-rare hereditary disease that can cause potentially life-threatening gastrointestinal and cardiovascular symptoms.
In September, Regeneron acquired Decibel Therapeutics, Inc., strengthening the company’s gene therapy and auditory programs. The most advanced pipeline candidate is DB-OTO, which is currently being studied in the global phase I/II CHORD study. DB-OTO is an investigational cell-selective, adeno-associated virus gene therapy designed to provide durable, physiological hearing to individuals with profound, congenital hearing loss caused by mutations of the otoferlin gene. Preclinical programs include AAV.103 for people with GJB2-related hearing loss and AAV.104 for people with stereocilin-related hearing loss.
Share Price Performance
Regeneron’s shares have gained 9.8% year-to-date against the industry’s decline of 22.7%.
Image Source: Zacks Investment Research
What Our Model Predicts
Our proven model does not conclusively predict an earnings beat for Regeneron this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as you will see below.
Earnings ESP: Earnings ESP for REGN is -2.39% as the Zacks Consensus Estimate is currently pinned at $10.70 per share and the Most Accurate Estimate is pegged at $10.45 per share. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks to Consider
Here are some drug/biotech stocks that you may want to consider, as our model shows that they have the right combination of elements to post an earnings beat this season.
Ligand Pharmaceuticals has an Earnings ESP of +2.94% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
LGND topped earnings estimates in three of the last four quarters and missed in the remaining one, with an earnings surprise of 52.47%, on average. Ligand is scheduled to release third-quarter 2023 results on Nov 6.
Acadia Pharmaceuticals (ACAD - Free Report) has an Earnings ESP of +6.76% and a Zacks Rank #2.
Acadia beat earnings estimates in two of the trailing four quarters and missed in the remaining two. ACAD delivered an earnings surprise of 20.33%, on average. Year-to-date, shares of Acadia have gained 41.3%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.