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Regeneron (REGN) Q3 Earnings Coming Up: What's in the Cards?
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Regeneron Pharmaceuticals, Inc. (REGN - Free Report) is scheduled to release third-quarter 2022 results on Nov 3, before the opening bell.
The company has an impressive track record having beaten earnings in all the past four quarters. In the last reported quarter, it beat earnings expectations by 14.54%. It surpassed earnings estimates by 30.54%, on average, in the last four quarters.
Regeneron Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
A major chunk of Regeneron’s revenues comes from the sales of its lead 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 United States in the second quarter increased 13.7%. Sales in the third quarter are likely to have witnessed a sequential increase with growth in demand on label expansions. The Zacks Consensus Estimate for Eylea sales in the United States is pegged at $1.69 billion.
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 global sales of Dupixent and Kevzara. Profits from Dupixent sales have been REGN’s primary growth driver in the last few quarters.
Dupixent has maintained its stellar performance on continuous label expansion all through. The trend is expected to have continued in the to-be-reported quarter. Total sales recorded by Sanofi in the third quarter were up 44.5%. Label expansion of the drug in the past few months is likely to have boosted sales further and resulted in incremental revenues for Regeneron in the third quarter.
Investors will focus on the performance of Libtayo and PCSK9 inhibitor Praluent. Effective Jul 1, 2022, Regeneron records net product sales of Libtayo and will pay Sanofi a royalty on such sales. Sales of Libtayo were up 21% in the previous quarter. Sales are likely to have recorded sequential growth in the to-be-reported quarter on label expansions. The Zacks Consensus Estimate for Libtayo sales is pegged at $149 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. Total sales in the previous quarter were up 10%. Praluent sales are likely to have recorded sequential growth in the third quarter.
In January 2022, the FDA revised the authorizations for a few monoclonal antibody treatments, including Regeneron’s REGEN-COV (casirivimab and imdevimab), as data indicated that these treatments are highly unlikely to be active against the Omicron variant. REGEN-COV is a cocktail of two monoclonal antibodies (casirivimab and imdevimab, also known as REGN10933 and REGN10987, respectively). Therefore, REGEN-COV is not currently authorized for use in any U.S. states, territories or jurisdictions. Hence, this revision dented sales in the first half of 2022 from this stream, and sales are likely to have been negligible in the third quarter as well.
Recent Updates
In September, the FDA approved Dupixent for the treatment of adult patients with prurigo nodularis. With this approval, Dupixent becomes the first and only medicine specifically indicated to treat prurigo nodularis in the United States.
Regeneron also announced that the two studies evaluating aflibercept 8 mg with 12- and 16-week dosing regimens in patients with diabetic macular edema and wet age-related macular degeneration were successful.
Share Price Performance
Regeneron’s shares have gained 18.9% in the year so far against the industry’s decline of 21.4%.
Image Source: Zacks Investment Research
Earnings Whispers
Our proven model does not conlusively predict an earnings beat for Regeneron in this reporting cycle. 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. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Regeneron has an Earnings ESP of -0.17% as the Zacks Consensus Estimate is pegged at $9.65 and the Most Accurate Estimate stands at $9.64.
Zacks Rank: Regeneron currently carries a Zacks Rank #3.
Stocks to Consider
Here are a couple of drug/biotech stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.
Image: Bigstock
Regeneron (REGN) Q3 Earnings Coming Up: What's in the Cards?
Regeneron Pharmaceuticals, Inc. (REGN - Free Report) is scheduled to release third-quarter 2022 results on Nov 3, before the opening bell.
The company has an impressive track record having beaten earnings in all the past four quarters. In the last reported quarter, it beat earnings expectations by 14.54%. It surpassed earnings estimates by 30.54%, 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
Factors at Play
A major chunk of Regeneron’s revenues comes from the sales of its lead 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 United States in the second quarter increased 13.7%. Sales in the third quarter are likely to have witnessed a sequential increase with growth in demand on label expansions. The Zacks Consensus Estimate for Eylea sales in the United States is pegged at $1.69 billion.
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 global sales of Dupixent and Kevzara. Profits from Dupixent sales have been REGN’s primary growth driver in the last few quarters.
Dupixent has maintained its stellar performance on continuous label expansion all through. The trend is expected to have continued in the to-be-reported quarter. Total sales recorded by Sanofi in the third quarter were up 44.5%. Label expansion of the drug in the past few months is likely to have boosted sales further and resulted in incremental revenues for Regeneron in the third quarter.
Investors will focus on the performance of Libtayo and PCSK9 inhibitor Praluent. Effective Jul 1, 2022, Regeneron records net product sales of Libtayo and will pay Sanofi a royalty on such sales. Sales of Libtayo were up 21% in the previous quarter. Sales are likely to have recorded sequential growth in the to-be-reported quarter on label expansions. The Zacks Consensus Estimate for Libtayo sales is pegged at $149 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. Total sales in the previous quarter were up 10%. Praluent sales are likely to have recorded sequential growth in the third quarter.
In January 2022, the FDA revised the authorizations for a few monoclonal antibody treatments, including Regeneron’s REGEN-COV (casirivimab and imdevimab), as data indicated that these treatments are highly unlikely to be active against the Omicron variant. REGEN-COV is a cocktail of two monoclonal antibodies (casirivimab and imdevimab, also known as REGN10933 and REGN10987, respectively). Therefore, REGEN-COV is not currently authorized for use in any U.S. states, territories or jurisdictions. Hence, this revision dented sales in the first half of 2022 from this stream, and sales are likely to have been negligible in the third quarter as well.
Recent Updates
In September, the FDA approved Dupixent for the treatment of adult patients with prurigo nodularis. With this approval, Dupixent becomes the first and only medicine specifically indicated to treat prurigo nodularis in the United States.
Regeneron also announced that the two studies evaluating aflibercept 8 mg with 12- and 16-week dosing regimens in patients with diabetic macular edema and wet age-related macular degeneration were successful.
Share Price Performance
Regeneron’s shares have gained 18.9% in the year so far against the industry’s decline of 21.4%.
Image Source: Zacks Investment Research
Earnings Whispers
Our proven model does not conlusively predict an earnings beat for Regeneron in this reporting cycle. 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. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Regeneron has an Earnings ESP of -0.17% as the Zacks Consensus Estimate is pegged at $9.65 and the Most Accurate Estimate stands at $9.64.
Zacks Rank: Regeneron currently carries a Zacks Rank #3.
Stocks to Consider
Here are a couple of drug/biotech stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.
Editas Medicine (EDIT - Free Report) has an Earnings ESP of +1.67% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings of EDIT beat estimates in each of the trailing four quarters. It delivered an earnings surprise of 17.82%, on average.
Jazz Pharmaceuticals (JAZZ - Free Report) has an Earnings ESP of +2.12% and a Zacks Rank #2.
JAZZ beat earnings estimates in three of the last four quarters, with the average earnings surprise being 10.94%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar