Regeneron Beats EPS and Revenue Estimates
Biotechnical company Regeneron (NASDAQ: REGN) announced earnings today for the fourth quarter 2020 and beat analysts’ estimates for both revenue and earnings per share. The company also said it had signed an agreement with the U.S. government to purchase up to 1.25 million additional doses of REGEN-COV, the antibody cocktail it produces and which received Food and Drug Administration emergency use authorization.
Last week, the company announced that the antibody cocktail “successfully neutralizes” both the U.K. variant (B.1.1.7) and South Africa variant (B.1.351) of COVID.
The company reported EPS $9.53 and revenue of $2.42 billion, a 30% increase compared to the fourth quarter of 2019, compared to consensus EPS estimate of $8.29 and consensus revenue estimate of $2.4 billion, according to Seeking Alpha.
“In 2020, the Regeneron team rapidly mobilized our significant scientific, development, manufacturing, and operational capabilities to bring our monoclonal antibody cocktail, REGEN-COV, to patients with COVID-19 through an Emergency Use Authorization,” Leonard S. Schleifer, M.D., Ph.D., president and CEO of Regeneron said in the earnings statement, adding that it will continue its work on COVID in 2021.
REGEN-COV received the FDA emergency use authorization in November 2020. The drug is authorized for the treatment of “mild to moderate COVID-19 in certain patients at high risk for progressing to severe COVID-19 and/or hospitalization,” according to the statement. The company adds that net product sales of REGEN-COV were $146 million in the fourth quarter of 2020 and $186 million for the full year of 2020.
In January, the company signed a second agreement with the U.S. government, in which it will acquire up to 1.25 million additional doses, resulting in payments to the company of up to $2.62, according to the statement.
“In 2020, Regeneron delivered double-digit top- and bottom-line growth and significant shareholder value despite the unprecedented circumstances of a global pandemic,” according to Robert E. Landry, Regeneron’s executive vice president of finance and chief financial officer. “As we look ahead into 2021 and beyond, our business momentum and strong balance sheet give us confidence as we invest in R&D for long-term growth and execute on our capital allocation priorities.”
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