About Regeneron Pharmaceuticals Inc
Regeneron is fighting some serious enemies. Regeneron Pharmaceuticals develops protein-based drugs used to battle a variety of diseases and conditions, including cancer, high cholesterol, inflammatory ailments, cardiovascular and metabolic diseases, infectious disease, rare diseases, and eye diseases. The biotechnology company has a handful of products on the market, including macular degeneration treatment EYLEA (aflibercept), cholesterol-lowering drug Praluent, rare inflammatory disease treatment ARCALYST, rheumatoid arthritis drug Kevzara, and cancer treatment ZALTRAP. Research-focused Regeneron has more than 20 candidates in clinical development. The US accounts for about 60% of Regeneron's sales.
Regeneron operates in one business segment which includes all activities from discovery and development through commercialization of its pharmaceutical products. Most of the segment's revenue comes from EYLEA sales, followed by Libtayo, and ARCALYST. The company also has development candidates in areas including hypercholesterolemia, oncology, rheumatoid arthritis, asthma, and atopic dermatitis. The segment brings in more than 60% of the company's revenue.
The rest of the company's revenue comes from development collaborations. Regeneron has collaborations with Sanofi and Bayer HealthCare to develop aflibercept for additional indications including cancerous tumors, as well as obtain approvals outside of the US. The Sanofi accounts for nearly 20% of revenue and Bayer collaborations account for about 15% of revenue and others account for about 5% of revenue.
Regeneron has its corporate and R&D headquarters in Tarrytown, New York, and a clinical and biostats office in Basking Ridge, New Jersey. It manufactures bulk drug materials in Renssalaer, New York.
Internationally, Regeneron is headquartered in Dublin, Ireland, and has a manufacturing facility in Limerick, Ireland, as well as an office in London.
Nearly 60% of Regeneron's sales are in the US. Sales outside the US account for about 20% as do sales from the Sanofi collaboration and the remaining sales from Bayer and other accounts (which Regeneron counts as international revenue).
Sales and Marketing
Regeneron uses distributors and specialty pharmacies to sell its products directly to health care providers. ARCALYST is sold directly to patients through the specialty pharmacies.
The company's largest customers are AmerisourceBergen subsidiary Besse Medical and McKesson, which each account for more than 10% of sales. Regeneron also collaborates with Bayer and Sanofi for global sales of EYLEA, Dupixent, Praluent, and Keyzara.
In 2019, the company's revenue increased by about $1.2 billion to $7.9 billion, compared to $6.7 billion in the prior year. Net product sales of EYLEA in the United States increased in 2019 compared to 2018 due to higher sales volume, partly offset by an increase in sales-related deductions primarily due to higher rebates and discounts.
Regeneron's net income decreased by $328.6 million to $2.1 billion compared to $2.4 billion in the prior year. The decrease was due to the increase on their operating expenses and income tax expenses by $1.5 billion and $204.2 million offsetting the $1.2 billion increase on their revenue.
The cash held by the company at the end of 2019 increased by $150 million to $1.6 billion, compared to the prior year with cash held of about $1.5 billion. The cash provided by operations was $2.4 billion, while cash used by investing and financing activities were $2.0 billion and $252.1 million, respectively.
Regeneron's core business strategy is to maintain a strong foundation in basic scientific research and discovery-enabling technologies, and to build on that foundation with our clinical development, manufacturing, and commercial capabilities. The company's objective is to continue to be an integrated, multi-product biotechnology company that provides patients and medical professionals with important options for preventing and treating human diseases.
In December 2019, the company and Sanofi announced their intent to restructure the antibody collaboration for Kevzara and Praluent; completion of the proposed arrangement is expected to be finalized in the first quarter of 2020. Under their collaboration agreement, Sanofi records product sales for commercialized products, and Regeneron has the right to co-commercialize such products on a country-by-country basis.
Regeneron was founded in New York City in 1988.
ARCALYST (rilonacept) was approved by the FDA in 2008 and subsequently became the company's first market-stage product.
777 Old Saw Mill River Rd STE 10
Tarrytown, NY 10591-6707
Phone: 1 (914) 847-7000
Employer Type: Publicly Owned
Stock Symbol: REGN
Stock Exchange: , NASDAQ
President and CEO: Leonard S. Schleifer
Chairman: P. Roy Vagelos
Chief Scientific Officer; President, Regeneron Laboratories: George D. Yancopoulos
Employees (This Location): 277
Employees (All Locations): 8,100