Regeneron Quarterly Profit Plunges 46 Percent as Eye Drug Sales Drop, COVID Drug Sales Dry Up

The Regeneron Pharmaceuticals company logo is seen on a building at the company's Westchester campus in Tarrytown, New York, on Sept. 17, 2020. Brendan McDermid/Reuters

Regeneron Pharmaceutical’s fourth-quarter profit was negatively impacted after sales of its COVID antibody cocktail dried up and lackluster sales of its blockbuster eye drug, Eylea, but sales of its eczema drug Dupixent helped recover some losses.

The pharmaceutical company’s quarterly report, released on Feb. 3, saw earnings fall by 46 percent due to reports of diminished sales of Eylea and negative demand for its COVID antibody drug REGEN-COV.

Total revenue for 2022 ended up declining by 31 percent, to $3.41 billion, higher than FactSet’s consensus of $3.13 billion.

The drug firm recorded no REGEN-COV sales after the FDA limited its use in the United States in January 2022 after it said there was a lack of effectiveness against the Omicron variant.

Regeneron completed final deliveries of the product under its agreements with the federal government.

The antibody treatment generated $2.3 billion in sales in the year-earlier quarter.

Eye Med Sales

U.S. sales of Eylea, which is used to treat vision loss leading to age-related macular degeneration, were impacted when a fund that provides co-pay assistance to patients was temporarily shut down in the fourth quarter.

Sales of the drug were down 3.3 percent to $1.50 billion in the fourth quarter.

Last month, patients who had switched to a less expensive alternative were already beginning to use it again, reported the company.

Total sales of Eylea hit $9.65 billion in 2022, and it has been a key driver of company revenue since its launch over a decade ago, but profits have been affected by the release of Roche’s Vabysmo, which was approved last year.

Eczema Meds Alleviate Losses

However, strong demand for its anti-inflammatory drug Dupixent, which has been produced with Sanofi since 2017, has helped alleviate the drop in quarterly sales for its eye drug.

The treatment is currently approved to relieve symptoms, including asthma and atopic dermatitis, also known as eczema.

Sales of Dupixent rose 38 percent to $2.45 billion, while Regeneron’s collaboration revenue from its French partner jumped about 61 percent to $836 million.

Excluding items, the company reported a profit of $12.56 per share for the quarter that ended Dec. 31, from $23.42 a year earlier.

Annual net profit was $1.20 billion or $10.50 per share from 2.23 billion, or $19.69 per share in the same period in 2021.

This was above most analysts’ estimates of $10.03, according to Refinitiv IBES data.

“In 2023, we remain committed to achieving the full potential of our diverse commercial- and clinical-stage portfolio, with a particular focus on aflibercept 8 mg, Dupixent in a variety of type 2 allergic diseases, and our promising oncology and hematology assets,” said Leonard Schleifer, President and CEO of Regeneron.

Reuters contributed to this report.