Pharmaceutical giant Regeneron (REGN) on Thursday delivered stronger-than-expected third-quarter earnings and sales, but cautioned that its ongoing hunt for a Covid-19 vaccine candidate and other clinical trials mean higher research and development costs.
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, compared to $1.74 billion in the third quarter of 2019. Analysts polled by FactSet has been expecting sales of $2.1 billion.
Looking forward, Regeneron said it now expects to post non-GAAP operating income of between $440 million and $470 million, down from prior estimates of between $445 million and $485 million. On the R&D 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.
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.
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