Benzinga | May 6, 2021 09:10AM EDT

Regeneron Reports Mixed Bag On Q1 Earnings; Eylea Franchise Boosts Revenue

* Regeneron Pharmaceuticals Inc (NASDAQ: REGN) earned $9.89 per share for the first quarter, beating the $9.03 estimate. Revenue of $2.53 billion narrowly missed analyst consensus of $2.56 billion.

* Total revenues increased 38% Y/Y to $2.53 billion, boosted by a strong rebound in Regeneron's Eylea eye disease drug and the contribution from its COVID-19 antibody cocktail treatment, REGEN-COV. Revenues excluding REGEN-COV increased by 20% Y/Y to $2.2 billion.

* Q1 Eylea U.S. net sales increased 15% Y/Y to $1.35 billion. Total revenues also include collaboration revenues of $754 million, up 43% Y/Y.

* Sanofi SA's (NASDAQ: SNY) collaboration revenue increased primarily due to the company's share of profits from the commercialization of antibodies at $261 million compared to $171 million in Q1 of 2020.

* Higher Dupixent profits primarily drove the change in Regeneron's profit share from the commercialization of antibodies.

* Operating margin improved to 64.5% from 56.6% a year ago. Regeneron generated a free cash flow of $553.2 million.

* Guidance: For 2021, the company sees an adjusted gross margin of 87%--89%. It expects Capex of $585 - $650 million lower than the previous guidance of $600--$680 million. It did not provide full-year EPS or sales guidance.

* Price Action: REGN shares are up 0.6% at $485.42 in the premarket session on the last check Thursday.