Regeneron reports second-quarter revenue growth to $4.3 billion
The biotechnology company lowered its full-year GAAP gross margin guidance to a range of 77%–78% following a production interruption in Ireland.
Regeneron Pharmaceuticals (REGN) reported total revenues of $4.3 billion for the second quarter, an increase of 17% year over year.
The result followed a period of slightly faster growth, as the company had posted a 19% increase in the first quarter. Non-GAAP earnings per share grew 11% year over year to $14.29, a deceleration from the 15% growth reported in the prior quarter.
Growth was driven largely by Dupixent, which saw global net sales increase 38% year over year to $6.0 billion. This represented an acceleration from the 33% growth rate seen in the first quarter. Collaboration revenue from Sanofi also rose 51% year over year to $2.17 billion, attributed to higher profits from Dupixent sales.
In the ophthalmology segment, EYLEA HD U.S. net sales increased 52% year over year to $596 million, matching the growth rate from the first quarter. Total U.S. net sales for the combined EYLEA and EYLEA HD portfolio decreased 12% year over year, though this was an improvement over the 10% decline reported in the previous quarter.
Other product contributions included Libtayo, which saw global net sales increase 30% year over year to $489 million. First sales figures for Lynozyfic totaled $17 million.
Profitability was impacted by a temporary production interruption in Limerick, Ireland. Unabsorbed manufacturing costs caused the GAAP gross margin on net product sales to compress to 78%, down from 83% in the second quarter of 2024. GAAP research and development expenses rose 15% year over year to $1.63 billion.
Regeneron lowered its full-year 2024 GAAP gross margin guidance on net product sales to 77%–78% from a previous range of 78%–79%. Non-GAAP gross margin guidance for the year was also reduced to 83%–84% from 84%–85%.
The company raised its full-year 2024 capital expenditures guidance to a range of $1.100 billion to $1.200 billion from $1.030 billion to $1.100 billion. Regeneron also noted that the Sanofi Development Balance was fully repaid by the end of the second quarter, which is expected to increase collaboration profits starting in the third quarter.