Regeneron Q1 EPS Beats by $0.50, Revenue Up on 33% Dupixent Growth
Regeneron posted Q1 adjusted EPS of $9.47, beating estimates by $0.50, and reported $3.6 billion in revenue, surpassing forecasts and driven by 33% growth in Dupixent to $4.9 billion. GAAP gross margin slid to 76% from 81% after Limerick production issues, trimming guidance to 77%–78% and authorizing $803 million repurchase plus $3 billion buyback.
1. Q1 Financial Results
Regeneron reported Q1 adjusted earnings per share of $9.47, topping consensus by $0.50, on revenue of $3.6 billion that exceeded analyst projections and marked a 19% year-over-year increase.
2. Dupixent and EYLEA Performance
Dupixent global net sales surged 33% to $4.9 billion, lifting collaboration revenue to $1.6 billion, while U.S. EYLEA HD sales grew 52% to $468 million even as legacy EYLEA sales fell 36% to $473 million, resulting in a 10% decline in combined U.S. EYLEA sales to $941 million.
3. Margin Pressure and Guidance Revision
GAAP gross margin on net product sales declined to 76% from 81% due to unabsorbed manufacturing costs and inventory write-offs from a production interruption at the Limerick facility; full-year margin guidance was revised down to 77%–78% with normalization expected by end of Q2.
4. Share Repurchases and Capital Allocation
During the quarter, the company repurchased $803 million of common stock and in April authorized a new $3.0 billion share repurchase program to enhance shareholder returns.