Shares of Regeneron Pharmaceuticals Inc. (REGN) surged 2.6% in premarket trading on Thursday, reaching a 5-week high. The biotechnology company announced its second-quarter profit and revenue, which exceeded expectations, primarily driven by robust collaboration revenue.
Impressive Financial Performance
Regeneron reported a net income of $968.4 million, or $8.50 per share, compared to $852.1 million, or $7.47 per share, in the same period last year. Adjusted earnings per share reached $10.24, surpassing the FactSet consensus of $9.88. Additionally, revenue witnessed a growth of 10.5% to $3.16 billion, outperforming the FactSet consensus of $3.02 billion.
Strong Collaboration Revenue
The company's collaboration revenue experienced a significant surge of 26.2% to $1.32 billion, while product sales rose by 1% to $1.77 billion. Notably, sales of their wet age-related macular degeneration treatment, Eylea, incurred a decline of 7.5% to $1.50 billion due to intensified competition and changing market dynamics resulting in lower selling prices.
Regeneron's stock has gained 1.5% year-to-date through Wednesday, performing favorably amid challenging market conditions. Meanwhile, the S&P 500 has rallied 17.6%, underscoring Regeneron's resilience and ability to deliver promising results even during turbulent times.
Regeneron Pharmaceuticals Inc.’s outstanding second-quarter performance highlights its strength in collaboration revenue and ability to navigate competitive challenges effectively, positioning the company for continued growth and success in the biotechnology sector.