Regeneron Pharmaceuticals Inc.’s (REGN) first quarter 2011 net loss of $0.49 per share was wider than the Zacks Consensus Estimate of a net loss of $0.38. The company suffered a loss of $0.38 in the year-ago quarter. The wider loss was attributable to higher operating expenses which more than offset the rise in revenues.
Quarterly Results in Detail
Total revenue in the reported quarter climbed 8.4% to $112.2 million. Revenues fell short of the Zacks Consensus Estimate of $114 million. Total revenues included collaboration revenue, technology licensing revenue, net product sales and contract research and other revenue.
The rise in total revenue came on the back of higher revenues in the reported quarter from Regeneron’s antibody collaboration with Sanofi-Aventis (SNY). Collaboration revenues climbed 19.6% to $97.8 million in the first quarter of 2011.
Revenues from technology licensing, arising out of Regeneron's license agreements declined 22% to $7.8 million. Net product sales from the company’s only marketed product, Arcalyst declined 55% to $4.4 million.
Sales of Arcalyst in the year ago quarter included $4.8 million of deferred net product sales. Revenues from contract research and others accounted for the balance in the reported quarter.
Both research and development (R&D) expenses (up 10.1%) and selling, general and administrative (SG&A) expenses (up 64.6%) were on the upswing during the reported quarter. Total operating expenses in the quarter climbed 15.7% to $153.2 million.
The rise was primarily attributable to the higher R&D expenses incurred on developing the pipeline at Regeneron and the higher employee headcount in connection with the antibody collaboration with Sanofi.
Our Recommendation
Currently, we have a Neutral stance on Regeneron in the long run, which is supported by the Zacks #3 Rank (short-term Hold recommendation) carried by the company.
REGENERON PHARM (REGN): Free Stock Analysis Report
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