Regeneron's Skin Drugs Propel Revenue In Q3, Witnesses Strong Demand For Higher Dose Version Of Flagship Eye Drug

Regeneron Pharmaceuticals Inc REGN earned Q3 adjusted EPS of $11.59, up 4% Y/Y, beating the $10.77 Street estimate.

Revenues increased 15% Y/Y to $3.36 billion, beating the consensus of $3.235 billion.

Dupixent global net sales (recorded by Sanofi) increased 33% to $3.10 billion versus the third quarter of 2022.

Third quarter 2023 U.S. net sales for Eylea (down 11%) and Eylea HD were $1.49 billion, including $43 million from Eylea HD (high dose version), primarily due to a lower net selling price driven by changing market dynamics, including increased competition.

Citing analysts, Reuters noted that the launch should potentially bring the treatment back to growth. Eylea has missed Wall Street sales expectations so far this year, partly due to competition from Roche's Holdings AG RHHBY Vabysmo since the rival secured U.S. approval last year.

Noting the conference call, Reuters reported, "In terms of the switches, it's early days. We are seeing switches from (regular dose) Eylea, as you would expect ... the early reports have been quite encouraging," said company executive Marion McCourt, adding there have been switches from other products as well.

Libtayo's global net sales increased 62% to $232 million.

"We have continued our momentum in the third quarter of 2023 with double-digit year-over-year revenue growth, driven by strong Dupixent and Libtayo performance, as well as strong initial uptake of EYLEA HD following its late August launch," said Leonard S. Schleifer, M.D., Ph.D., Board Co-Chair, President and Chief Executive Officer of Regeneron.

In September 2023, the company completed its acquisition of Decibel Therapeutics Inc. and paid $101 million in cash, and may also pay up to a maximum of approximately $97 million as milestone payments.

Price Action: REGN shares are up 4.45% at $826.52 on the last check Thursday.