Regeneron Pharmaceuticals (REGN) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues rose 12% year-over-year to $3.55 billion, driven by EYLEA HD, Dupixent, and Libtayo, with EYLEA HD U.S. sales at $304 million and Dupixent global sales at $3.56 billion.

• Net income for Q2 2024 was $1.43 billion, up 48% year-over-year, with diluted EPS of $12.41 (GAAP) and $11.56 (non-GAAP).

• Over $5 billion invested in R&D in 2024, advancing a diversified pipeline in ophthalmology, immunology, oncology, obesity, and genetic medicines.

• Dupixent received EC approval for COPD, with FDA decision expected by September 2024; Libtayo global net sales grew over 41% year-over-year.

• FDA approval for linvoseltamab delayed due to third-party manufacturing, but no safety or efficacy issues identified.

Financial highlights

• Q2 2024 total revenues were $3.55 billion, up 12% year-over-year; net product sales reached $1.92 billion, and collaboration revenue from Sanofi rose 21% to $1.15 billion.

• Diluted net income per share was $12.41 (GAAP) and $11.56 (non-GAAP); net income margin for Q2 2024 was approximately 40%.

• Dupixent global net product sales grew 27–29% to $3.56 billion; EYLEA HD and EYLEA U.S. net sales increased 2% to $1.54 billion; Libtayo global net sales up 41–43% to $297 million.

• Free cash flow for the first six months was $1.55–$1.6 billion; cash and marketable securities totaled $17.5 billion at quarter end.

• Share repurchases totaled $899–$900 million in H1 2024, with $3.6 billion remaining authorized.

Outlook and guidance

• 2024 gross margin guidance is approximately 89% (non-GAAP); GAAP gross margin approximately 86%.

• 2024 R&D guidance raised to $5.02–$5.17 billion (GAAP); SG&A guidance $2.94–$3.09 billion (GAAP).

• Capital expenditures for 2024 projected at $750–$880 million, focused on facility expansion.

• Multiple pivotal and proof-of-concept data readouts and regulatory decisions expected in 2H 2024 and 2025, including FDA decisions on Dupixent in COPD and linvoseltamab.

• EYLEA HD prefilled syringe launch targeted for early 2025.