TARRYTOWN, N.Y. (AP) -- Regeneron Pharmaceuticals said Tuesday its net income fell 26 percent in the third quarter as spending increased, but sales of its eye disease drug Eylea continued to climb.
The company said stock-based compensation costs increased, and it spent more money on an antibody drug partnership with French drugmaker Sanofi while hiring more research and development personnel. Costs related to selling and administration more than doubled because of costs from the marketing of Eylea. However, net sales of Eylea rose 15 percent to $488 million. U.S. sales of the drug, which treats the eye conditions "wet" age-related macular degeneration and a form of macular edema, rose 49 percent to $363 million.
Regeneron shares rose $14.43, or 5.1 percent, to $296.13 in morning trading.
The company's net income slipped to $141.3 million, or $1.25 per share, from $191.5 million, or $1.72 per share. Excluding one-time costs it net income rose to $2.40 per share from $1.89 per share a year ago. Revenue grew 40 percent, to $597 million from $427.7 million.
Analysts expected income of $1.88 per share and $505.7 million in revenue, according to FactSet.
The company also reported $45 million in payments from its partner Bayer AG related to their international collaboration on Eylea, and it had $32 million in profit from international sales of Eylea after expenses.
Regeneron now expects $1.35 billion to $1.38 billion in U.S. sales of Eylea in 2013, up from its prior forecast of $1.3 billion to $1.35 billion.
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