Regeneron Reveals Mixed Q3 Revenue Performance Amid Continued Struggles for Eylea Brand
Regeneron released its third-quarter earnings report this Thursday, showcasing robust year-over-year expansion and global sales that exceeded expectations. However, investor sentiment took a hit, with shares dropping near 10% following the financial disclosures.
A significant factor in investor apprehension appears to be the underwhelming sales performance of Regeneron’s Eylea (aflibercept) product line. Despite total sales for Eylea rising 3% to .54 billion in Q3, the revenues from its high-dose version—approved in August 2023—missed analyst projections by 5%, earning 2 million instead of the anticipated 4 million. Additionally, the original Eylea formulation saw a steep 21% decline in revenues, dropping to .15 billion from .5 billion during the same timeframe last year.
In an investor note, Jefferies analyst Akash Tewari highlighted several “key issues” that may be hindering the adoption of high-dose Eylea. Factors include the less frequent dosing schedule of every eight to sixteen weeks, which may be a deterrent for some physicians reluctant to switch their patients. The planned approval for the high-dose formulation in cases of retinal vein occlusion could provide a sales boost, Tewari indicated.
Nonetheless, Tewari emphasized that the launch of a pre-filled syringe would serve as the “most significant catalyst” for increasing high-dose Eylea usage, which is expected in mid-2025 according to Regeneron’s projections.
Adding to investor worries is the soon-to-be-released biosimilar version of Eylea, Pavblu, from Amgen, which was approved in August 2024. The subsequent month, a West Virginia judge ruled against Regeneron’s request to block the commercial entry of the biosimilar, which was a setback for the company as reported in a sealed decision.
Post-judgment, Amgen indicated its intentions for an at-risk commercial launch of Pavblu, according to reports from Fierce Pharma.
Despite these setbacks with Eylea, Regeneron’s CEO Leonard Schleifer characterized the company’s recent quarter as “strong” during a Thursday analyst call, with total revenue reaching .72 billion, marking an 11% increase compared to the same quarter last year.
Other products in Regeneron’s portfolio fared better this quarter. BMO Capital Markets analyst Evan Seigerman described the Sanofi-partnered Dupixent as a “bright spot,” noting its end-user sales surpassed analyst expectations by 7%. The recent approval of Dupixent for chronic obstructive pulmonary disease is anticipated to further boost its sales figures.
Seigerman expressed that his firm remains optimistic about the potential for high-dose Eylea to stabilize the decline in aflibercept sales. Additionally, Regeneron’s pipeline is on the verge of upcoming “significant readouts,” which could positively affect its financial landscape, he noted.
Truist Securities analyst Srikripa Devarakonda voiced confidence in Regeneron’s pipeline in an investor memo, stating, “we continue to believe that REGN’s diverse pipeline across oncology, internal/genetic medicines, I&amli, and ophthalmology remains overlooked.”