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Will Eylea & Dupixent Drive Regeneron's (REGN) Q1 Earnings?
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Regeneron Pharmaceuticals, Inc. (REGN - Free Report) is scheduled to release first-quarter 2020 results on May 5, before the opening bell.
The company has a decent track record. In the last reported quarter, the company beat earnings expectations by 8.70%. It surpassed earnings estimates by 1.44%, on average, in the last four quarters.
Let’s see how things are shaping up for the upcoming announcement.
Regeneron Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
Regeneron’s key drug, Eylea, which is approved for various ophthalmology indications (neovascular age-related macular degeneration, diabetic macular edema and macular edema, among others), reflected strong growth in the fourth quarter of 2019. This trend most likely continued in the first quarter. Eylea was developed in collaboration with Bayer AG.
In December 2019, Regeneron launched the Eylea pre-filled syringe in the United States, which is likely to have resulted in incremental sales. The Zacks Consensus Estimate for Eylea sales in the United States is $975 million.
Regeneron has a collaboration agreement with Sanofi (SNY - Free Report) for some of its drugs like Dupixent, Praluent and Kevzara. Under the collaboration agreement, Sanofi records sales for commercialized products and Regeneron has the right to co-commercialize these products on a country-by-country basis.
Apart from Eylea, investors will be focusing on Dupixent’s (sales are recorded by Sanofi) performance and label expansion, which was the primary growth driver in 2019.
Asthma drug Dupixent’s sales maintain solid momentum in the fourth quarter of 2019 on continuous label expansion and the trend is expected to have continued in the first quarter. Label expansion of the drug in the last few months has most likely boosted sales, further. The Zacks Consensus Estimate for Dupixent sales is $812 million.
In 2019, the European Commission approved Dupixent in chronic rhinosinusitis with nasal polyposis (CRSwNP). The European Commission approved another label expansion of the drug to include adolescents aged 12-17 years with moderate-to-severe atopic dermatitis (AD), who are candidates for systemic therapy. The incremental sales from these added indications might have been realized in the first quarter.
Investors will also focus on the performance of PCSK9 inhibitor, Praluent, and Libtayo. Sales of Libtayo came in at $74.7 million in the previous quarter. Sales have most likely recorded a sequential growth in the to-be-reported quarter.
Praluent sales have most likely recorded growth on label expansions approved last year.
Key Recent Developments
Apart from top-line numbers, investors will focus on Regeneron's pipeline updates. The phase III study on Libtayo as monotherapy in patients with first-line, locally-advanced or metastatic non-small cell lung cancer (NSCLC) was stopped early due to highly significant improvement in overall survival. Investors will be keenly awaiting updates on the regulatory submission of the same.
Investors will also look forward to an update on the company’s restructuring agreement with Sanofi. In December 2019, Regeneron and Sanofi announced their intent to simplify their antibody collaboration for Kevzara and Praluent by restructuring it into a royalty-based agreement. Last month, both companies finalized the planned Praluent restructuring agreement. In the United States, Regeneron will have sole responsibility for Praluent and record net product sales. Sanofi will have sole responsibility outside the country and pay Regeneron a royalty on Praluent net product sales.
COVID-19 Update
The ongoing phase II/III study evaluating Kevzara, an interleukin-6 (IL-6) receptor antibody, in hospitalized patients with "severe" or "critical" respiratory illness caused by COVID-19 will be amended, so that only "critical" patients are enrolled to receive Kevzara 400 mg or placebo. Further updates on the same will be eagerly awaited. Regeneron has identified hundreds of virus-neutralizing antibodies for COVID-19 and is planning to initiate a study shortly.
Share Price Performance
Regeneron’s stock has gained 37.8% year to date compared with the industry’s growth of 2.7%.
Earnings Whispers
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. But that is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate of $5.81 and the Zacks Consensus Estimate of $5.99, is -3.05%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Regeneron has a Zacks Rank #3.
Stocks to Consider
Here are a few stocks you may want to consider, as our model shows that these the right combination of elements to post an earnings beat this quarter.
Alexion Pharmaceuticals has an Earnings ESP of +1.08% and a Zacks Rank #3. The company is scheduled to release results on May 6.
Today's Best Stocks from Zacks
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This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
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Will Eylea & Dupixent Drive Regeneron's (REGN) Q1 Earnings?
Regeneron Pharmaceuticals, Inc. (REGN - Free Report) is scheduled to release first-quarter 2020 results on May 5, before the opening bell.
The company has a decent track record. In the last reported quarter, the company beat earnings expectations by 8.70%. It surpassed earnings estimates by 1.44%, on average, in the last four quarters.
Let’s see how things are shaping up for the upcoming announcement.
Regeneron Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
Regeneron Pharmaceuticals, Inc. price-consensus-eps-surprise-chart | Regeneron Pharmaceuticals, Inc. Quote
Factors at Play
Regeneron’s key drug, Eylea, which is approved for various ophthalmology indications (neovascular age-related macular degeneration, diabetic macular edema and macular edema, among others), reflected strong growth in the fourth quarter of 2019. This trend most likely continued in the first quarter. Eylea was developed in collaboration with Bayer AG.
In December 2019, Regeneron launched the Eylea pre-filled syringe in the United States, which is likely to have resulted in incremental sales. The Zacks Consensus Estimate for Eylea sales in the United States is $975 million.
Regeneron has a collaboration agreement with Sanofi (SNY - Free Report) for some of its drugs like Dupixent, Praluent and Kevzara. Under the collaboration agreement, Sanofi records sales for commercialized products and Regeneron has the right to co-commercialize these products on a country-by-country basis.
Apart from Eylea, investors will be focusing on Dupixent’s (sales are recorded by Sanofi) performance and label expansion, which was the primary growth driver in 2019.
Asthma drug Dupixent’s sales maintain solid momentum in the fourth quarter of 2019 on continuous label expansion and the trend is expected to have continued in the first quarter. Label expansion of the drug in the last few months has most likely boosted sales, further. The Zacks Consensus Estimate for Dupixent sales is $812 million.
In 2019, the European Commission approved Dupixent in chronic rhinosinusitis with nasal polyposis (CRSwNP). The European Commission approved another label expansion of the drug to include adolescents aged 12-17 years with moderate-to-severe atopic dermatitis (AD), who are candidates for systemic therapy. The incremental sales from these added indications might have been realized in the first quarter.
Investors will also focus on the performance of PCSK9 inhibitor, Praluent, and Libtayo. Sales of Libtayo came in at $74.7 million in the previous quarter. Sales have most likely recorded a sequential growth in the to-be-reported quarter.
Praluent sales have most likely recorded growth on label expansions approved last year.
Key Recent Developments
Apart from top-line numbers, investors will focus on Regeneron's pipeline updates. The phase III study on Libtayo as monotherapy in patients with first-line, locally-advanced or metastatic non-small cell lung cancer (NSCLC) was stopped early due to highly significant improvement in overall survival. Investors will be keenly awaiting updates on the regulatory submission of the same.
Investors will also look forward to an update on the company’s restructuring agreement with Sanofi. In December 2019, Regeneron and Sanofi announced their intent to simplify their antibody collaboration for Kevzara and Praluent by restructuring it into a royalty-based agreement. Last month, both companies finalized the planned Praluent restructuring agreement. In the United States, Regeneron will have sole responsibility for Praluent and record net product sales. Sanofi will have sole responsibility outside the country and pay Regeneron a royalty on Praluent net product sales.
COVID-19 Update
The ongoing phase II/III study evaluating Kevzara, an interleukin-6 (IL-6) receptor antibody, in hospitalized patients with "severe" or "critical" respiratory illness caused by COVID-19 will be amended, so that only "critical" patients are enrolled to receive Kevzara 400 mg or placebo. Further updates on the same will be eagerly awaited. Regeneron has identified hundreds of virus-neutralizing antibodies for COVID-19 and is planning to initiate a study shortly.
Share Price Performance
Regeneron’s stock has gained 37.8% year to date compared with the industry’s growth of 2.7%.
Earnings Whispers
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. But that is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate of $5.81 and the Zacks Consensus Estimate of $5.99, is -3.05%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Regeneron has a Zacks Rank #3.
Stocks to Consider
Here are a few stocks you may want to consider, as our model shows that these the right combination of elements to post an earnings beat this quarter.
Sage Therapeutics (SAGE - Free Report) has an Earnings ESP of +1.67% and a Zacks Rank #2. The company is scheduled to release results on May 7. You can see the complete list of today’s Zacks #1 Rank stocks here.
Alexion Pharmaceuticals has an Earnings ESP of +1.08% and a Zacks Rank #3. The company is scheduled to release results on May 6.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>