Regeneron Pharmaceuticals Inc (NASDAQ:REGN) recently released its latest quarterly results revealing a 30% year over year revenue increase supported by a solid strategy in 4Q2020 and the full year 2020.
The company’s impressive revenue reflects on the demand for its product portfolio. Leonard S. Schleifer, Regeneron’s CEO accredited the impressive performance partly to its ability to mobilize various operational capacities such as operations, scientific research, development and manufacturing. These efforts allowed the company rapidly come up with REGEN-COV, a monoclonal antibody treatment for COVID19 which received the FDA’s emergency use authorization.
The demand for COVID19 vaccines provided a significant revenue boost for the company in Q4 2020. Regeneron expects to continue tapping into more growth opportunities in this segment as the vaccine rollout gathers pace across the world. EYLEA was also one of the biopharma’s best performing products in 2020. It delivered $1.34 billion in sales in 4Q2020.The company hopes to maintain the same momentum in 2021.
2021 forecasts
Regeneron is optimistic about its performance in 2021 as per the guidance provided. For example, it expects its GAAP gross margin on net product sales to increase by 86% to 88% and Non-GAAP gross margin on net product sales to grow by 87% to 89%. The performance expectation. The biopharma expects the positive growth expectations to be supported by the robust product lineup that was responsible for the impressive performance in 2020.
The company also anticipates more revenue contributions from pipeline products after regulatory approvals. For example, the company expects regulatory greenlight for Libtayo as a treatment for basal cell carcinoma and non-small cell lung cancer. The company is also banking on expanded approvals that will allow it to tap into a wider market for Libtayo and Dupixent.
"We anticipate additional readouts later this year from across our oncology pipeline, including the bispecific platform," stated Schleifer.
Regeneron also reported that its robust balance sheet and strong business momentum in 2020 provides confidence to invest heavily in the future through R&D. This is part of the company’s strategy for long-term growth.