Sales of Regeneron Pharmaceuticals' biggest moneymaker, Eylea, disappointed on Monday amid continued competition from a Roche drug. REGN stock slumped at the close.
For the December quarter, Regeneron's blockbuster eye-disease treatment brought in $1.46 billion in U.S. sales. That missed expectations for $1.49 billion to $1.56 billion, Piper Sandler analyst Christopher Raymond said in a report.
That number includes the first full quarter of sales from high-dose Eylea, also known as Eylea HD. Last year, the company overcame several regulatory hurdles to gain Food and Drug Administration approval for an 8-milligram version of the injection. The standard Eylea is a 2-milligram dose.
The longer-acting high-dose version gives Eylea HD a longer patent-protected life than standard Eylea. But that only benefits Regeneron if patients will switch to Eylea HD. Regeneron is also facing off with a new drug from Roche called Vabysmo.
On today's stock market, REGN stock toppled 1.1% to 902.88. Meanwhile, shares of Exelixis skidded after the company issued a light outlook for 2024. EXEL stock tumbled 3% to 22.54.
REGN Stock: Bolstering Its Pipeline
Regeneron announced $1.34 billion in sales of standard Eylea in the U.S., and $123 million for the high-dose version. Analysts projected $1.39 billion to $1.48 billion for standard Eylea, and $77.9 million to $127.4 million in sales from the newer high-dose injection.
Piper Sandler's Raymond kept his overweight rating on REGN stock. The preannouncement only covers Eylea in the U.S. Bayer sells the eye-disease drug abroad. Regeneron also sells a blockbuster called Dupixent in partnership with Sanofi for eczema, asthma and other allergic conditions.
"We continue to believe that the Eylea franchise is positioned well for continued dominance despite anther soft Eylea 2-milligram quarter," he said in a report. "With Dupixent continuing to outperform expectations and additional levers to be pulled — including expansion opportunities and additional pipeline programs — we remain buyers."
He has an 895 price target on REGN stock.
In related news, Exelixis guided to $1.65 billion to $1.75 billion in sales for the year. That lagged EXEL stock analysts' forecast for $1.84 billion to $1.85 billion, William Blair analyst Andy Hsieh said in a note.
Preliminarily, fourth-quarter product sales came in at $430 million, in line with estimates that ranged from $427 million to $432 million, he said. He has an outperform rating on EXEL stock.
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