Regeneron Pharmaceuticals (REGN) - Get Report, one of many pharmaceutical companies deep in the race for a viable Covid-19 vaccine, posted better-than-expected third-quarter earnings and revenue as sales of its other on-the-market drugs were better than expected.
Tarrytown, New York-based Regeneron said it earned $961 million, or $8.36 a share, in its third quarter, up from $762 million, or $6.67 a share, in the comparable year-earlier period. Analysts polled by FactSet had been expecting earnings of $6.97 a share.
Revenue increased by 32% to $2.29 billion in the third quarter from $1.74 billion in the third quarter of 2019. Analysts polled by FactSet has been expecting sales of $2.1 billion.
"Even with our intense commitment to fighting Covid-19, Regeneron continues to deliver across all aspects of our business,” CEO Leonard Schleifer said in a statement, noting that “robust” sales of asthma drug Dupixent and its other drugs that treat dermatitis and eczema helped bolster earnings.
Sanofi in May sold its stake in Regeneron, worth about $13 billion, to focus its efforts on cancer-fighting treatments, but still sells Regeneron drugs.
Meantime, Regeneron’s ongoing phase 2/3 trials of its prospective Covid-19 vaccine candidate continue to show positive results, with REGN-COV2 “significantly” reducing virus levels and the need for further medical attention in non-hospitalized patients.
Looking forward, Regeneron said it now expects to post non-GAAP operating income of between $440 million and $470 million in 2020, down from prior estimates of between $445 million and $485 million.
On the research and development side, Regeneron said it now expects to spend a net $2.4 billion to $2.47 billion in 2020, up from prior expectations of between $2.27 billion and $2.37 billion.
Regeneron also said it was looking to launch its non-small-cell lung cancer treatment, Libtayo, in 2021, which has shown promising results in a phase 3 trial.
Regeneron in September received Food and Drug Administration approval for REGN-EB3, its novel antibody cocktail treatment for Ebola.
A combination of antibodies made by Regeneron was among the medications and treatments given to President Donald Trump when he had Covid-19. The antibodies physically stick to the coronavirus so they can't get inside the body's cells, making the virus more "visible" to the rest of the immune system.
Shares of Regeneron were down 0.76% at $582.68 in trading on Thursday.