TARRYTOWN, NY – Today, Regeneron (NASDAQ:REGN) Pharmaceuticals, Inc. announced preliminary financial results for the second quarter of 2024, including an expected in-process research and development (IPR&D) charge. The IPR&D charge, estimated at approximately $24 million pre-tax, is attributed to upfront payments and a premium on equity securities linked to collaboration and licensing agreements.
The IPR&D charge is projected to reduce both GAAP and non-GAAP net income per diluted share by roughly $0.18 for Q2 2024. Regeneron clarified that such charges typically encompass costs related to acquired IPR&D in asset acquisitions, upfront payments, opt-in and certain development milestone payments, and premiums on equity securities from collaboration and licensing deals. Due to the unpredictable nature of these transactions, the company does not regularly forecast acquired IPR&D charges.
Regeneron emphasized that its Q2 2024 financial results are not yet finalized and are subject to the completion of standard financial statement closing procedures. Consequently, there is a possibility that the final reported figures may differ from these preliminary estimates.
The above news is based on a recent SEC filing.
In other recent news, Regeneron Pharmaceuticals has seen several significant developments. Argus Research has raised its price target for the company to $1,170, anticipating a favorable year ahead due to promising developments. TD Cowen also maintained a Buy rating on Regeneron, focusing on the company's obesity pipeline and the sustained growth of Eylea HD and Dupixent. RBC Capital has increased its price target to $1,200, after analyzing phase III studies for Dupixent, a treatment for asthma and atopic dermatitis.
In the realm of regulatory advancements, the FDA has approved Kevzara, a drug developed by Regeneron and Sanofi (NASDAQ:SNY), for treating children with active polyarticular juvenile idiopathic arthritis. This approval expands the treatment options for this condition. The FDA has also granted Priority Review for Dupixent as an add-on maintenance treatment for adolescents with inadequately controlled chronic rhinosinusitis with nasal polyposis (CRSwNP).
Despite a delay in the approval process of Dupixent for treating Chronic Obstructive Pulmonary Disease (COPD), BMO Capital maintains an outperform rating on Regeneron, predicting Dupixent to generate $2.9 billion in sales for the treatment of COPD.
InvestingPro Insights
As Regeneron Pharmaceuticals, Inc. navigates the complexities of in-process research and development charges and provides preliminary financial results for Q2 2024, investors may benefit from additional context provided by real-time InvestingPro data and insights. Regeneron's management has demonstrated confidence in the company by aggressively buying back shares, a move that could signal a belief in the company's value and future prospects. Additionally, the firm has been recognized as a prominent player in the Biotechnology industry and operates with a moderate level of debt, suggesting a balanced approach to leveraging and growth.
InvestingPro data shows Regeneron with a market capitalization of $111.58 billion and a P/E ratio that has adjusted to 26.33 in the last twelve months as of Q1 2024. The company's revenue has grown by 5.9% during the same period, indicating a steady upward trajectory in its earnings capability. Moreover, Regeneron's stock has been trading near its 52-week high, with a price percentage of 95.66% of that high, reflecting strong market confidence. These figures are essential for investors considering the company's performance relative to its industry peers and the broader market.
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