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Will Eylea and Dupixent Fuel Regeneron's (REGN) Q4 Earnings?
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Regeneron Pharmaceuticals, Inc. (REGN - Free Report) is scheduled to release fourth-quarter 2022 results on Feb 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 14.85%. It surpassed earnings estimates by 20.08%, on average, in the last four quarters.
What Our Model Predicts
Our proven model predicts 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. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Earnings ESP for REGN is +4.30% as the Zacks Consensus Estimate currently stands at $9.69 per share and the Most Accurate Estimate is currently pegged at $10.11.
Zacks Rank: The company currently carries a Zacks Rank #3.
Regeneron Pharmaceuticals, Inc. Price and Consensus
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 previous quarter increased 11%. Sales in the fourth quarter are likely to have witnessed a sequential increase with growth in demand for 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 launches in pediatric atopic dermatitis, eosinophilic esophagitis, and prurigo nodularis. Sales of the drug were up 40% in the previous quarter. The trend is expected to have continued in the to-be-reported quarter. 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 fourth 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 20% 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’s sales is pegged at $151 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 down 1% and the fourth quarter has likely experienced the same.
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 nine months of 2022 from this stream and sales are likely to have been negligible in the fourth quarter.
RECENT UPDATES
In December, the European Commission (EC) expanded the marketing authorization for Dupixent (dupilumab) in the European Union to treat adults with moderate-to-severe prurigo nodularis who are candidates for systemic therapy.
In November, Libtayo also won EC approval as monotherapy for the treatment of adult patients with recurrent or metastatic cervical cancer and disease progression on or after platinum-based chemotherapy.
Share Price Performance
Regeneron’s shares have gained 22% in the year so far against the industry’s decline of 8%.
Image Source: Zacks Investment Research
Other Stocks to Consider
Here are some more drug/biotech stocks you may want to consider, as our model shows that they have the right combination of elements to post an earnings beat this season.
Image: Bigstock
Will Eylea and Dupixent Fuel Regeneron's (REGN) Q4 Earnings?
Regeneron Pharmaceuticals, Inc. (REGN - Free Report) is scheduled to release fourth-quarter 2022 results on Feb 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 14.85%. It surpassed earnings estimates by 20.08%, on average, in the last four quarters.
What Our Model Predicts
Our proven model predicts 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. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Earnings ESP for REGN is +4.30% as the Zacks Consensus Estimate currently stands at $9.69 per share and the Most Accurate Estimate is currently pegged at $10.11.
Zacks Rank: The company currently carries a Zacks Rank #3.
Regeneron Pharmaceuticals, Inc. Price and Consensus
Regeneron Pharmaceuticals, Inc. price-consensus-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 previous quarter increased 11%. Sales in the fourth quarter are likely to have witnessed a sequential increase with growth in demand for 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 launches in pediatric atopic dermatitis, eosinophilic esophagitis, and prurigo nodularis. Sales of the drug were up 40% in the previous quarter. The trend is expected to have continued in the to-be-reported quarter. 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 fourth 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 20% 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’s sales is pegged at $151 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 down 1% and the fourth quarter has likely experienced the same.
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 nine months of 2022 from this stream and sales are likely to have been negligible in the fourth quarter.
RECENT UPDATES
In December, the European Commission (EC) expanded the marketing authorization for Dupixent (dupilumab) in the European Union to treat adults with moderate-to-severe prurigo nodularis who are candidates for systemic therapy.
In November, Libtayo also won EC approval as monotherapy for the treatment of adult patients with recurrent or metastatic cervical cancer and disease progression on or after platinum-based chemotherapy.
Share Price Performance
Regeneron’s shares have gained 22% in the year so far against the industry’s decline of 8%.
Image Source: Zacks Investment Research
Other Stocks to Consider
Here are some more drug/biotech stocks you may want to consider, as our model shows that they have the right combination of elements to post an earnings beat this season.
Novo Nordisk (NVO - Free Report) has an Earnings ESP of +12.81% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
NVO topped earnings estimates in three of the last four quarters and has a four-quarter earnings surprise of 3.09%, on average.
Gilead Sciences, Inc. (GILD - Free Report) has an Earnings ESP of +6.63% and a Zacks Rank #3.
GILD beat earnings estimate in three of the last four quarters, with the average earnings surprise being 0.36%.