Investors are eying big gains in Regeneron Pharmaceuticals (REGN) following its earnings release today, which featured good news on the biotech company’s blockbuster-to-be, Eylea.
Getty Images Reuters has the details on Regeneron’s results:
Regeneron Pharmaceuticals Inc forecast U.S. sales of eye drug Eylea to reach $1.7-$1.8 billion in 2014 as it expects the drug to win approval for newer uses, sending its shares up 3 percent before the opening bell.
Regeneron, whose stock has been propelled by the success of Eylea, said U.S. sales of the sight-saving drug rose 46 percent to $402 million in the fourth quarter. The drug’s international sales touched $184 million in the quarter…
The company’s net income fell to $97 million, or 86 cents per share, in the quarter ended December 31, from $470 million, or $4.08 per share, a year earlier. The year-ago quarter included a non-cash tax benefit of $336 million.
Analysts had expected a profit of 98 cents per share, according to Thomson Reuters I/B/E/S.
RBC Capital Market’s Adnan Butt and team note that Eylea sales could be better than management forecasts:
The trend shows growth over 4Q run-rate and is deemed a positive as management is typically viewed as conservative when it comes to guidance. Questions on the call will focus on what is included, i.e., whether it includes DME or not which is not yet approved. We like [Regeneron] for the blockbuster potential of Eylea and the deep pipeline and are buyers, especially on any pullbacks. It is one of our top ideas for 2014.
Brean Capital’s Jonathan Aschoff and Yi Cheng raise their target price on Regeneron to $380 from $367. They explain why:
4Q13, U.S. Eylea sales were hurt by the holiday season but helped by an increase in inventory held by distributors to over two weeks, which should negatively affect sequential Eylea sales in 1Q14. In 4Q13, Eylea had 50% of the U.S. branded [anti-vascular endothelial growth factor, or VEGF] wet [age-related macular degeneration] market and Eylea had 40% of the U.S. branded anti-VEGF [central retinal vein occlusion, or CRVO] market…We look forward to the many Phase 3 alirocumab trials reading out around mid-2014, and view the drug to be the next major value driver. Given our adjusted Eylea projection, we have raised our target price to $380 from $367.
Shares of Regeneron have risen 6.1% to $322.94 at 3:27 p.m., while Amgen (AMGN) has risen 1.1% to $120.96, Biogen Idec (BIIB) has advance 0.3% to $319.02 and Gilead, (GILD) is up 1% to $81.74. The SPDR S&P Biotech ETF (XBI) has gained 1.3% to $155.89.
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