Regeneron Pharmaceuticals (NASDAQ: VLAD) beat Street forecasts with its fourth-quarter 2022 financials on Friday as the company posted better-than-expected sales for its antibody therapy for COVID-19 REGEN-COV despite poor results from its breakthrough eye therapy Eyle.
Income for the quarter fell ~31% to $3.4 billion, while full-year revenue fell ~24% year-over-year to $12.2 billion as the dampening impact of the pandemic hurt the sales contribution of REGEN-COV, known as Ronapreve abroad.
However, excluding REGEN-COV, Regeneron ( REGN ) reported ~14% yoy and ~17% revenue growth for the quarter and full year, respectively.
Product net sales fell ~21% YoY to $1.8 billion for the quarter, while collaboration revenue jumped ~78% YoY to $1.6 billion, driven by growth in collaboration revenue at Sanofi ( SNY ) (OTCPK:SNYNF) of ~61% YoY.
Sales of Eyle fell ~4% to $2.3 billion, below Street estimates, while REGEN-COV, which is currently not approved in the US due to efficacy concerns, beat expectations with sales of ~1.1 billion USD thanks to foreign demand.
Regeneron ( REGN ) said a near-term switch to off-label use of Roche’s ( OTCQX:RHHBY ) ( OTCQX:RHHBF ) VEGF inhibitor Avastin and the temporary shutdown of a fund that provided patient payment assistance negatively impacted U.S. Eyle’s fourth-quarter 2022 results.
The marketing application for the high-dose version of Eylee is currently under review by the FDA, with a decision expected in the third quarter of 2023 for wet AMD and diabetic macular edema.
Sanofi’s ( SNY ) atopic dermatitis partner Dupixent added ~$2.4 billion in net sales to the top line with ~38% YoY growth, slightly below expectations.
Meanwhile, adjusted earnings per share for the fourth quarter and full year came in at $12.56 and $44.98, down ~46% year-over-year and ~40%, respectively, as IPR and development fees were unfavorable affected the final result.
Regeneron ( REGN ) launched its 2023 guidance with highlights including 90% – 92% adj. gross margin from net product sales and $4.2 billion – $4.4 billion for GAAP research and development expenses.
Read: ONeil Trader seeking Alpha contribution explains why early US net sales of Eyle that the company shared in January “were below expectations.”