Regeneron(REGN) - 2025 Q1 - Quarterly Results

Financial Performance - Total revenues for Q1 2025 were $3.029 billion, a decrease of 4$3.145 billion in Q1 2024[4] - GAAP net income for Q1 2025 was $809 million, representing a 12$722 million in Q1 2024[4] - Non-GAAP net income for Q1 2025 was $928 million, a decrease of 17$1.116 billion in Q1 2024[4] - Total revenues for the quarter were $3,028.7 million, a decline of 3.7$3,145.0 million in the prior year[39] - Net income for the quarter was $808.7 million, representing an increase of 12.0$722.0 million in the same quarter of 2024[39] - Non-GAAP net income was $928.4 million, down from$1,115.9 million year-over-year[40] - Free cash flow for the quarter was $815.8 million, a decrease from$1,378.6 million in the same period last year[41] Sales Performance - Dupixent global net sales increased by 19% to $3.67 billion in Q1 2025 compared to Q1 2024[5] - EYLEA HD U.S. net sales increased by 54$307 million in Q1 2025, while total EYLEA HD and EYLEA U.S. net sales decreased by 26% to $1.04 billion[5] - Total net product sales for EYLEA HD and EYLEA reached$1,900.6 million, a decrease of 16% compared to $2,251.0 million in the previous year[44] - Dupixent generated net product sales of$3,665.6 million, reflecting a 19% increase from $3,076.8 million in the prior year[44] - Libtayo's net product sales amounted to$285.1 million, an 8% increase from $263.9 million year-over-year[44] - Kevzara saw net product sales of$116.4 million, representing a 24% increase compared to $94.1 million in the previous year[44] - Other products generated net sales of$54.6 million, also a 24% increase from $44.2 million year-over-year[44] - EYLEA HD sales in the U.S. were$306.8 million, a significant increase of 111% from $215.2 million in the previous year[44] - Total EYLEA sales in the U.S. were$1,042.8 million, down from $1,401.6 million, indicating a 16$1.183 billion in Q1 2025, driven by higher profits from Dupixent sales[20] - The company records its share of profits from global sales of Dupixent and Kevzara within Collaboration revenue, reflecting strong international performance[45] - The company pays royalties on global sales of Libtayo and Praluent, contributing to its revenue streams[45] - The company does not include net product sales of ARCALYST in its reported figures, as those are recorded by Kiniksa[45] Expenses and Margins - In Q1 2025, GAAP R&D expenses increased to $1,327 million, a 6$1,248 million in Q1 2024[21] - GAAP SG&A expenses decreased to $633 million, an 8$689 million in Q1 2024[21] - GAAP gross margin on net product sales was 81%, down from 86% in Q1 2024[21] - Regeneron's gross margin on net product sales was 81%, down from 86% in the same quarter of 2024[41] Tax and Shareholder Returns - The GAAP effective tax rate (ETR) for Q1 2025 was 10.6%, up from (3.0%) in Q1 2024[23] - The effective tax rate (ETR) for GAAP was 10.6%, compared to a negative 3.0% in the prior year[41] - A new share repurchase program was authorized for up to $3.0 billion, with$1.052 billion repurchased in Q1 2025[24] - The company declared a cash dividend of $0.88 per share, payable on June 6, 2025[25] Future Outlook and Investments - The company announced ongoing investments in infrastructure and manufacturing in New York and North Carolina expected to exceed$7 billion[5] - The FDA accepted priority review for EYLEA HD sBLA for retinal vein occlusion and monthly dosing, with a target action date of August 19, 2025[5] - The company has approximately 45 product candidates in clinical development, with several pivotal data readouts expected later this year[6] - A 10-year agreement with FUJIFILM Diosynth Biotechnologies was announced to nearly double the company's large-scale manufacturing capacity in the U.S.[15] - Full year 2025 GAAP R&D guidance remains unchanged at $5.560–$5.795 billion[26] - The updated GAAP gross margin on net product sales guidance is now 83%–84%, down from the previous 84%–85%[26] - The company utilizes non-GAAP measures for better evaluation of operating performance, excluding certain non-cash items[28] Investments and Securities - The company recognized net unrealized gains on equity securities of $140 million in Q1 2025, compared to net unrealized losses of$196 million in Q1 2024[22] - Cash and marketable securities totaled $17,625.7 million as of March 31, 2025, a slight decrease from$17,912.6 million at the end of 2024[38] - Total assets decreased to $37,545.2 million from$37,759.4 million at the end of the previous year[38]