Regeneron Pharmaceuticals outplayed its competition in eye diseases Wednesday, reporting Eylea sales that both grew and beat expectations, leading REGN stock to soar.
During the June quarter, U.S. Eylea sales advanced 14% vs. the year-earlier period, climbing to $1.62 billion. That topped expectations for $1.55 billion, RBC Capital Markets analyst Brian Abrahams said in a note to clients. The results help affirm Eylea's leading position in its drug class, he said.
"That being said, given typical seasonal strength in the first and second quarters coupled with overall market growth, it may be too early to discern whether Roche's Vabysmo can make material inroads," he said. Vabysmo gained U.S. approval in January to treat two eye diseases targeted by Eylea.
On today's stock market, REGN stock surged 5.9% to close at 608.77. Regeneron stock topped its 50-day moving average, according to MarketSmith.com.
REGN Stock: Covid Treatment Falls Off
Across all products, Regeneron's sales tumbled 44% to $2.86 billion. But that includes the impact of Regeneron's now defunct Covid treatment, REGEN-COV. The Food and Drug Administration pulled the antibody cocktail from the market six months ago amid concerns it couldn't stand up to omicron. In the year-earlier period, REGEN-COV brought in $2.59 billion in sales. This quarter, nothing.
Excluding the-year earlier contributions of the Covid drug, Regeneron's sales climbed 20%. They also topped expectations for $2.79 billion, according to REGN stock analysts polled by FactSet. Profit, on an adjusted basis, tumbled 62% to $9.77 per share. But that beat forecasts for $8.62.
Regeneron records sales of cholesterol drug Praluent in the U.S. and receives a royalty from partner Sanofi on sales abroad. But U.S. sales tumbled 26% to $31.2 million and missed the Street's estimate of $36 million, Piper Sandler analyst Christopher Raymond said in his note to clients.
Still, he kept his overweight rating on REGN stock.
Worldwide sales of Libtayo, a cancer treatment, jumped 21% to $141.3 million. That beat Raymond's $135 million projection.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
