Regeneron stock surged Friday on stronger-than-expected metrics, though its partner Sanofi posted a mixed bag and SNY stock toppled.
Both Regeneron Pharmaceuticals and Sanofi are hanging their hats on strong sales of Dupixent. Dupixent treats conditions like eczema, asthma and nasal polyps. But there are more opportunities down the road for the drug, which is soon to have test results in patients with a lung condition called chronic obstructive pulmonary disease, commonly known as COPD.
Dupixent sales rocketed 38% to $2.45 billion during the fourth quarter. Sales were roughly in line with forecasts for $2.36 billion to $2.46 billion, according to several analyst reports. RBC Capital Markets analyst Brian Abrahams noted Sanofi's guidance for about $10.9 billion in full-year Dupixent sales is better than expectations for $10.1 billion to $10.8 billion.
This reaffirms "the drug's strong growth trajectory and likely to be favorably received," he said in a note to clients.
But on the stock market today, shares of Regeneron and Sanofi diverged. Regeneron stock jumped 4.3% and closed at 783.13. SNY stock fell 2.6% to close at 46.02.
Regeneron Stock: Beat Despite Declines
Overall metrics from Regeneron beat forecasts. Adjusted earnings skidded 46% to $12.56 per share, but topped expectations for $10.17 per share. Sales plummeted 31% to $3.41 billion. But Regeneron stock analysts called for a steeper dive to $3.13 billion in sales.
The lion's share of the decline comes from Regeneron's Covid antibody. There were no sales of REGEN-COV in the U.S. last year after the company completed its final drug deliveries for the U.S. government in December 2021. In the year-earlier period, that drug brought in nearly $2.3 billion in sales.
Excluding that drug — which sells as Ronapreve in Europe — sales rose 14%, Regeneron said.
As expected, U.S. revenue from eye disease blockbuster Eylea came in short. Eylea brought in almost $1.5 billion in sales, down 3%. The company pre-announced the light Eylea number last month, pushing Regeneron stock into a tumble. Bayer records sales of Eylea abroad.
Regeneron blamed off-label use of Roche's cancer drug Avastin for the downfall in sales. But Abrahams, the RBC analyst, noted Roche also sells a competitor known as Vabysmo. This week, Roche reported about $640.1 million in fourth-quarter sales of Vabysmo.
SNY Stock: Sales Come In Light
Sanofi provided a mixed report Friday, pushing SNY stock lower.
The company earned 1.71 euros per share, which translates to $1.86 based on today's exchange rates. That was roughly in line with expectations, SVB Securities analyst David Risinger said in a note.
But total sales were 10.73 billion euros, or about $11.65 billion. Sales climbed 7.3% on a strict, as-reported basis, but missed forecasts for $12.06 billion, according to FactSet.
Bearishly, Sanofi guided to a low single-digit growth in earnings this year, excluding the impact from exchange rates. But the company expects exchange rates to ultimately be a 3.5% to 4.5% headwind to earnings growth.
This "suggests flat year-over-year earnings vs. consensus expectations for about 1% earnings per share growth," Risinger said. SNY stock analysts had forecast earnings of $4.55 a share, minus some items. That would be basically flat year over year.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
