Regeneron 2Q Profit Surges on Collaborations

By Dieter Holger

Regeneron Pharmaceuticals Inc. profit surged above Wall Street's expectations in the latest quarter on the back of collaborations with other pharmaceutical giants.

The Tarrytown, N.Y.-based drugmaker posted earnings of $897.3 million, or $7.61 a share, in the second quarter, compared with $193.1 million, or $1.68 a share, a year ago.

Earnings came in above the $5.91 a share analysts polled by FactSet had expected.

Sales were $1.95 billion in the quarter, up from $1.58 billion a year prior. Analysts had expected lower sales of $1.73 billion.

Regeneron said sales from its collaborations with drugmakers Bayer AG and Sanofi rose to $513 million in the quarter, up 45% from $353 million in the previous year.

But sales of its age-related macular degeneration eye drug Eylea were negatively affected by the pandemic, falling 3.9% to $1.1 billion compared with $1.2 billion last year.

Regeneron's stock has skryocketed this year in large part thanks to excitement around its antibody cocktail that treats Covid-19, which entered phase 3 trials in early July.

The company also has courted controversy. The U.S. Department of Justice sued Regeneron in late June, alleging that it paid off a foundation to help Medicare patients buy its eye drug Eylea, which costs more than $10,000 a year and drew sales of $4.6 billion in 2019. Regeneron has said the lawsuit is without merit.

Write to Dieter Holger at [e-mail]; @dieterholger

(END) Dow Jones Newswires

August 05, 2020 07:15 ET (11:15 GMT)

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