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Will Eylea, Dupixent Drive Regeneron's (REGN) Q4 Earnings?
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Regeneron Pharmaceuticals, Inc. (REGN - Free Report) is scheduled to release fourth-quarter 2020 results on Feb 5, before the opening bell.
The company has an impressive track record. In the last reported quarter, the company beat earnings expectations by 15.63%. It surpassed earnings estimates by 13.61%, on average, in the last four quarters.
Regeneron Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
Let’s see how things are shaping up for the upcoming announcement.
Why a Likely Positive Surprise
Our proven model predicts an earnings beat for Regeneron this season. 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. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Earnings ESP for Regeneron is +5.60% as the Zacks Consensus Estimate is pegged at $8.32 while the Most Accurate Estimate is pegged at $8.78.
Zacks Rank: It currently carries a Zacks Rank #3.
Factors to Note
A major chunk of Regeneron’s revenues comes from sales of key drug, Eylea, which is approved for various ophthalmology indications (neovascular age-related macular degeneration, diabetic macular edema 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.
Eylea sales in the third quarter of 2020 came in at $1.31 billion in the United States, following a revival from the second quarter due to COVID-19 pandemic. Sales in the fourth quarter have most likely witnessed sequential growth as a result of this stabilization. The Zacks Consensus Estimate for Eylea sales in the United States is pegged at $1.34 billion.
Regeneron has a collaboration agreement with Sanofi (SNY - Free Report) for some of its drugs like Dupixent, Praluent and Kevzara. Apart from Eylea, investors will be focusing on asthma drug, Dupixent’s (sales are recorded by Sanofi) performance and label expansion. The drug has been the primary growth driver in the last few quarters. Regeneron records its share of profits/losses in connection with global sales of Dupixent and Kevzara within collaboration revenues.
Dupixent’s sales maintained solid momentum in the third quarter of 2020 on continuous label expansion and the trend is expected to have continued in the to-be reported 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 pegged at $1.2 billion.
In November 2020, the European Commission (EC) extended the marketing authorization for Dupixent in the EU to include children 6 to 11 years of age with severe atopic dermatitis who are candidates for systemic therapy. The incremental sales from this label expansion and uptake of previous label expansions have most likely led to growth in sales of the drug in the to-be-reported quarter.
Investors are set to focus on the performance of PCSK9 inhibitor, Praluent, and Libtayo. Sales of Libtayo came in at $71.6 million in the United States in the previous quarter. Regeneron records net product sales of Libtayo in the United States and its share of profits/losses in connection with sales of the drug outside the country. Sales have most likely recorded sequential growth in the to-be-reported quarter. Praluent sales too have most likely recorded growth on label expansions approved last year.
This apart, the company recorded sales of $40.2 million from REGEN-COV, its antibody cocktail for COVID-19. REGEN-COV is a cocktail of two monoclonal antibodies (casirivimab and imdevimab, also known as REGN10933 and REGN10987, respectively) and was designed specifically to block the infectivity of SARS-CoV-2, the virus that causes COVID-19. REGEN-COV received an Emergency Use Authorization from the FDA in November 2020 for the treatment of mild-to-moderate COVID-19 in adults and pediatric patients. Sales are most likely to have recorded sequential growth in the to-be-reported quarter following this authorization as the pandemic worsened.
Key Recent Developments
Regeneron recently announced that researchers in Dr. David Ho's Columbia University lab and its own scientists have independently confirmed that its REGEN-COV antibody cocktail is effective against the SARS-CoV-2 variants. Researchers and scientists confirmed that REGEN-COV successfully neutralizes the circulating SARS-CoV-2 variants first identified in the U.K. (B.1.1.7) and South Africa (B.1.351). The cocktail retained its potent neutralizing capability against the B.1.1.7 variant, with both antibodies retaining their potency. Regeneron is currently conducting additional preclinical research against other strains and an update on the same is expected on the call.
Share Price Performance
Regeneron’s shares have rallied 49% in the past year compared with the industry’s growth of 16.1%.
Other Stocks to Consider
Here are some other drug/biotech stocks you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this season.
Gilead Sciences, Inc. (GILD - Free Report) has an Earnings ESP of +3.89% and a Zacks Rank #3.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Image: Bigstock
Will Eylea, Dupixent Drive Regeneron's (REGN) Q4 Earnings?
Regeneron Pharmaceuticals, Inc. (REGN - Free Report) is scheduled to release fourth-quarter 2020 results on Feb 5, before the opening bell.
The company has an impressive track record. In the last reported quarter, the company beat earnings expectations by 15.63%. It surpassed earnings estimates by 13.61%, on average, in the last four quarters.
Regeneron Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
Regeneron Pharmaceuticals, Inc. price-consensus-eps-surprise-chart | Regeneron Pharmaceuticals, Inc. Quote
Let’s see how things are shaping up for the upcoming announcement.
Why a Likely Positive Surprise
Our proven model predicts an earnings beat for Regeneron this season. 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. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Earnings ESP for Regeneron is +5.60% as the Zacks Consensus Estimate is pegged at $8.32 while the Most Accurate Estimate is pegged at $8.78.
Zacks Rank: It currently carries a Zacks Rank #3.
Factors to Note
A major chunk of Regeneron’s revenues comes from sales of key drug, Eylea, which is approved for various ophthalmology indications (neovascular age-related macular degeneration, diabetic macular edema 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.
Eylea sales in the third quarter of 2020 came in at $1.31 billion in the United States, following a revival from the second quarter due to COVID-19 pandemic. Sales in the fourth quarter have most likely witnessed sequential growth as a result of this stabilization. The Zacks Consensus Estimate for Eylea sales in the United States is pegged at $1.34 billion.
Regeneron has a collaboration agreement with Sanofi (SNY - Free Report) for some of its drugs like Dupixent, Praluent and Kevzara. Apart from Eylea, investors will be focusing on asthma drug, Dupixent’s (sales are recorded by Sanofi) performance and label expansion. The drug has been the primary growth driver in the last few quarters. Regeneron records its share of profits/losses in connection with global sales of Dupixent and Kevzara within collaboration revenues.
Dupixent’s sales maintained solid momentum in the third quarter of 2020 on continuous label expansion and the trend is expected to have continued in the to-be reported 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 pegged at $1.2 billion.
In November 2020, the European Commission (EC) extended the marketing authorization for Dupixent in the EU to include children 6 to 11 years of age with severe atopic dermatitis who are candidates for systemic therapy. The incremental sales from this label expansion and uptake of previous label expansions have most likely led to growth in sales of the drug in the to-be-reported quarter.
Investors are set to focus on the performance of PCSK9 inhibitor, Praluent, and Libtayo. Sales of Libtayo came in at $71.6 million in the United States in the previous quarter. Regeneron records net product sales of Libtayo in the United States and its share of profits/losses in connection with sales of the drug outside the country. Sales have most likely recorded sequential growth in the to-be-reported quarter. Praluent sales too have most likely recorded growth on label expansions approved last year.
This apart, the company recorded sales of $40.2 million from REGEN-COV, its antibody cocktail for COVID-19. REGEN-COV is a cocktail of two monoclonal antibodies (casirivimab and imdevimab, also known as REGN10933 and REGN10987, respectively) and was designed specifically to block the infectivity of SARS-CoV-2, the virus that causes COVID-19. REGEN-COV received an Emergency Use Authorization from the FDA in November 2020 for the treatment of mild-to-moderate COVID-19 in adults and pediatric patients. Sales are most likely to have recorded sequential growth in the to-be-reported quarter following this authorization as the pandemic worsened.
Key Recent Developments
Regeneron recently announced that researchers in Dr. David Ho's Columbia University lab and its own scientists have independently confirmed that its REGEN-COV antibody cocktail is effective against the SARS-CoV-2 variants. Researchers and scientists confirmed that REGEN-COV successfully neutralizes the circulating SARS-CoV-2 variants first identified in the U.K. (B.1.1.7) and South Africa (B.1.351). The cocktail retained its potent neutralizing capability against the B.1.1.7 variant, with both antibodies retaining their potency. Regeneron is currently conducting additional preclinical research against other strains and an update on the same is expected on the call.
Share Price Performance
Regeneron’s shares have rallied 49% in the past year compared with the industry’s growth of 16.1%.
Other Stocks to Consider
Here are some other drug/biotech stocks you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this season.
Alexion has an Earnings ESP of +12.29% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Gilead Sciences, Inc. (GILD - Free Report) has an Earnings ESP of +3.89% and a Zacks Rank #3.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>