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Will Eylea, Dupixent, REGEN COV Aid Regeneron (REGN) Q3 Earnings?

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Regeneron Pharmaceuticals, Inc. REGN is scheduled to release third-quarter 2021 results on Nov 4, before the opening bell.

The company has an impressive track record. In the last reported quarter, it beat earnings expectations by 31.97%. It surpassed earnings estimates by 18.66%, on average, in the last four quarters.

Regeneron Pharmaceuticals, Inc. Price and Consensus

Regeneron Pharmaceuticals, Inc. Price and Consensus
Regeneron Pharmaceuticals, Inc. Price and Consensus

Regeneron Pharmaceuticals, Inc. price-consensus-chart | Regeneron Pharmaceuticals, Inc. Quote

What Our Model Predicts

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. That is the case here.

Earnings ESP: Earnings ESP of Regeneron is +8.78%, as the Zacks Consensus Estimate is pegged at $9.81 and the Most Accurate Estimate stands at $10.67.

Zacks Rank: It currently carries a Zacks Rank #1.

Factors to Note

A major chunk of Regeneron’s revenues comes from the sales of its 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 previous quarter came in at $1.42 billion in the United States. Sales in the quarter under review have most likely witnessed sequential growth with the normalizing of demand. The Zacks Consensus Estimate for Eylea sales in the United States is pegged at $1.46 billion.

Regeneron has a collaboration agreement with Sanofi SNY for some of its other drugs like Dupixent 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 company’s primary growth driver in the last few quarters. Regeneron records its share of profits/losses in connection with global sales of Dupixent and Kevzara.

Dupixent maintained its stellar performance on continuous label expansion and the trend is expected to have continued in the to-be-reported quarter. Total sales in the last quarter came in at $1.5 billion. Label expansion of the drug in the last few months is likely to have boosted sales further and resulted in incremental results. The Zacks Consensus Estimate for Dupixent sales is pegged at $1.56 billion.

Investors will focus on the performance of PCSK9 inhibitor, Praluent, and Libtayo. Regeneron records net product sales of Libtayo in the United States and Sanofi records net product sales of the drug outside the United States. The parties equally share profits/losses in connection with global sales of Libtayo.

Sales of Libtayo came in at $116.9 million in the previous quarter. Sales are likely to have recorded sequential growth in the to-be-reported quarter on recent label expansions.

Effective Apr 1, 2020, 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 came in at $99.4 million. Praluent sales are likely to have recorded sequential growth. The Zacks Consensus Estimate for Praluent sales is pegged at $103 million.

Apart from these, the company recorded sales of $2.6 billion (in the United States) from REGEN-COV in the previous quarter. REGEN-COV is a cocktail of two monoclonal antibodies (casirivimab and imdevimab, also known as REGN10933 and REGN10987, respectively). REGEN-COV received an Emergency Use Authorization from the FDA in November 2020 for the treatment of mild-to-moderate COVID-19 in adult and pediatric patients. In July, the FDA expanded the authorization for the cocktail for post-exposure prophylaxis in certain people exposed to a SARS-CoV-2 infected individual, or who are at high risk of exposure to an infected individual in an institutional setting. Sales are expected to have recorded sequential growth in the to-be-reported quarter as the pandemic continues to wreak havoc and on expanded authorizations.

Key Recent Developments

In August, the U.K’s Medicines and Healthcare products Regulatory Agency granted Conditional Marketing Authorization (CMA) for the casirivimab and imdevimab antibody cocktail (Ronapreve in the U.K. and other countries), to prevent and treat acute COVID-19 infection. In September, Regeneron announced that the U.S. Department of Health and Human Services and the Department of Defense will purchase 1.4 million additional doses of REGEN-COV.

Share Price Performance

Regeneron’s shares have gained 32.5% in the year so far against the industry’s decline of 10.1%.

Zacks Investment Research
Zacks Investment Research

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Other Stocks to Consider

Here are a couple of 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.

Exelixis EXEL has an Earnings ESP of +20.00% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Vertex Pharmaceuticals VRTX has an Earnings ESP of +10.62% and a Zacks Rank #2.



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Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report

Sanofi (SNY) : Free Stock Analysis Report

Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report

Exelixis, Inc. (EXEL) : Free Stock Analysis Report

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