Biotechnology company Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN) recently reported stronger-than-expected results for the quarter ended December 31, 2021. The robust results can be attributed to the massive growth witnessed in total revenues.
Following the earnings, shares of the company rose marginally to close at $622.96 on Friday.
Revenue & Earnings
Regeneron reported quarterly revenues of $4.95 billion, up 104% from the prior year’s figure of $2.42 billion. Further, the figure topped the consensus estimate of $4.42 billion. The primary driver of this growth was the 145.1% year-over-year growth witnessed in net product sales, which comprised 80% of the total revenues of the company.
The company reported quarterly earnings of $23.72 per share, up 149% from the previous year’s figure of $9.53 per share. Further, the figure surpassed the consensus estimate of $18.37 per share.
For 2021, the company expects to have a gross margin on net product sales in the range of 90% to 92%, while it forecasts the effective tax rate to be between 13% and 15%.
Management Commentary
The CEO of Regeneron, Leonard S. Schleifer, said, “In 2021, Regeneron delivered strong results across our core business with impressive EYLEA and Dupixent growth, while also helping address the ongoing pandemic by delivering REGEN-COV to millions of patients. For 2022, we remain focused on building on EYLEA’s success, expanding approvals and patient reach for Dupixent, pursuing new indications for Libtayo, and reading out data from our oncology pipeline – all while continuing to progress our diversified earlier-stage pipeline.”
Stock Rating
Recently, Cowen & Co. analyst Tyler Van Buren reiterated a Hold rating on the stock. The analyst, however, raised the price target from $625 to $640, which implies upside potential of 2.7% from current levels.
The analyst said, “A strong commercial performance of the core business led to strong Q4 results. Understanding the early Vabysmo launch trajectory will be key to becoming more constructive with Eylea estimates, but we remain at (2) until then. Phase III high-dose data for Eylea in H2 and bispec/costim readouts during the year could generate additional enthusiasm. Increasing PT to $640 following minor revisions.”
The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 11 Buys, 4 Holds and 1 Sell. The average Regeneron stock prediction of $707.29 implies that the stock has upside potential of 13.5% from current levels. Shares have gained 25.9% over the past year.
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