Regeneron stock dips amid decline in Eylea sales despite Q1 beat

Regeneron Pharmaceuticals' (NASDAQ:REGN) stock is trading in the red premarket on Thursday after net product sales of Eylea in the U.S. fell. even as the company's Q1 results beat estimates.

Worldwide sales of wet AMD drug Eylea — developed with Bayer (OTCPK:BAYRY) (OTCPK:BAYZF) — fell -4.4% Y/Y to $2.28B.

U.S. sales declined -5.5% Y/Y to $1.43B, mainly due to an increase in sales-related deductions, partly offset by higher sales volume.

Eylea faces competition from Roche's (OTCQX:RHHBY) (OTCQX:RHHBF) eye drug Vabysmo. Roche said during its Q1 release that Vabysmo, which was launched in early 2022, became the pharma division's biggest growth driver, with sales of CHF432M in Q1.

However, Regeneron received an expanded approval of the drug in the U.S. in February this year for use in treating retinopathy of prematurity in preterm infants. The company also has an application pending before the U.S. FDA for a high-dose version of Eylea with a decision expected in Q3.

Q1 total revenues grew +6.6% Y/Y to ~$3.16B, surpassing analysts' expectations.

Global sales of Dupixent, which is developed with Sanofi (SNY), rose +37.2% Y/Y to ~$2.49B. U.S. sales accounted increased +43.2% Y/Y to ~$1.9B.

COVID‑19 antibody therapy REGEN-COV saw a decline of -3.52% Y/Y to $$613.2M in global sales, which consisted only from Rest of the World as there were no sales in the U.S.

Global sales of lung cancer drug Libtayo's soared +46.4% Y/Y to $182.6M, Cholesterol therapy Praluent's global sales rose +30.9% Y/Y to $145.9M.

However, rheumatoid arthritis therapy Kevzara's global revenue declined -26.2%Y/Y to $78.5M.

Global gross profit payment from Roche related to sales of COVID therapy Ronapreve increased +2.7% to $222.2M.

Q1 adjusted EPS fell -12.1% to $10.09, but beat estimates.

Outlook:

Regeneron expects FY23 adjusted gross margin on net product sales to be 89% to 91% from prior outlook of 90%–92%.

GAAP R&D expected between $4.225B and $4.465B, compared to prior range of $4.2B to $4.435B.

REGN -2.88% to $780 premarket May 4