Regeneron Posts Drop In Q1 Profit As COVID Antibody Sales Hit, Shares Fall

• Regeneron Pharmaceuticals Inc (NASDAQ:REGN) earned $11.49 per share for Q1 FY22, up 16% Y/Y, beating the $10.04 estimate. 
• Sales increased 17% to $2.96 billion, surpassing the analysts' consensus of $2.73 billion, fueled by sales of COVID-19 treatment, REGEN-COV. 
• The company reported a net income of $974 million, down 13%, as its COVID-19 antibody cocktail sales were hit by the FDA's decision to limit its use.
• The company recorded no sales from the pill in the United States for the quarter, as was expected.
• Also See: FDA Extends Review Period For Regeneron's COVID-19 Antibody Therapy.
• Q1 U.S. Eylea sales increased 13% Y/Y to $1.52 billion. 
• The operating margin compressed from 44% to 42.4%.
• Guidance: For FY22, Regeneron reaffirms FY22 adjusted gross margin on product sales of 90% – 92%. 
• It expects R&D costs of $2.9 billion - $3.1 billion, up from 2.8 billion – $3 billion expected earlier.
• Price Action: REGN shares are down 2.50% at $644.80 during the market session on the last check Wednesday.