Regeneron Beats Street Estimates Big In Q2 As COVID-19 Antibody Boosts Topline, Cuts FY21 R&D Spend Outlook

Regeneron Pharmaceuticals Inc REGN earned $25.80 per share for the second quarter, beating the $17.69 estimate.
It clocked revenue of $5.1 billion, surpassing the analysts' consensus of $3.89 billion and higher than $1.95 billion a year ago, primarily attributable to sales from COVID-19 treatment, REGEN-COV.
Excluding REGEN-COV sales of $2.6 billion, sales increased 22% Y/Y. Regeneron delivered 1.25 million doses of REGEN-COV during the quarter.
Q2 Eylea U.S. net sales increased 28% Y/Y to $1.42 billion.
The cost of goods sold increased sharply from $103 million to $539 million, primarily due to the recognition of manufacturing costs of REGEN-COV.
The operating income increased from $656.4 million to $3.3 billion. Regeneron generated a free cash flow of $478.2 million.
Guidance: For FY21, Regeneron sees an adjusted gross margin of 88%–89%.
It expects R&D costs of $2.65 billion - $2.75 billion lower than the previous guidance of $2.7 billion – $2.85 billion.
Price Action: REGN shares are up 2.07% at $592.99 during the premarket session on the last check Thursday.

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