Yahoo Finance What’s Regeneron Expecting for Revenue in 1Q16?
Will Impressive 1Q16 Earnings for Regeneron Be Enough?
How do analysts foresee sales growth?
Regeneron Pharmaceuticals (REGN) will announce its earnings for 1Q16 on May 5, 2016. Wall Street analysts have estimated that revenues for Regeneron during 1Q16 and 2Q16 will be $1.18 billion and $1.25 billion, respectively. The company is expected to report ~36% annual growth in 1Q16, as compared to 1Q15. Revenue growth is expected to slow down a bit to 25%.
What will drive Regeneron’s revenue?
The company has three approved drugs in its portfolio—Eylea, Praluent, and Arcalyst. Product sales include revenues from the sale of these three drugs. (For an insight into Regeneron’s business model, check out “An Overview of Regeneron’s Business Model.”)
Eylea, the company’s key drug, contributed almost 68% to Regeneron’s total revenue during 4Q15. Regeneron’s consistent efforts to expand the label have paid off, however, as it’s a blockbuster drug that saw soaring global sales of around $4.1 billion during fiscal 2015. (For further details on Eylea, you might be interested in “Regeneron Enters into a Collaboration with Bayer HealthCare” and “Eylea Could Help Regeneron Focus on the Eye Therapy Segment.”)
Competition in label expansion
Eylea has yet to cross the potential peak sales of $6 billion, however. Regeneron’s label expansion strategy to boost sales is in line with the one adopted by other players such as Vertex Pharmaceuticals (VRTX), Roche Holding (RHHBY), and Medivation (MDVN).
Notably, Vertex has expanded the population base for its cystic fibrosis drugs, Kalydeco and Orkambi, while Roche has done the same for its CLL (chronic lymphocytic leukemia) drug, Gazyva. Medivation is also continuously expanding the upstream indications for its critical asset, Xtandi, which is meant to treat prostate cancer. (For more on the potential of the commercialized drug Praluent, check out “The Battle between Praluent and Repatha.”)
To get exposure to Regeneron while avoiding the risks associated with investing directly in a company’s stock, investors can look at options like the First Trust NYSE Arca Biotechnology Index Fund (FBT). FBT has ~3.5% in Regeneron.
In the next part, we’ll discuss Regeneron’s sales growth.
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