Business Corpus: Regeneron Topples Despite Surprising Beat For Blockbuster Eye DrugRegeneron reported better-than-expected adjusted earnings of $4.76 a share. The biotech's revenue of $1.51 billion came in a little below some forecasts. The post Regeneron Topples Despite Surprising Beat For Blockbuster Eye Drug appeared first on Investor's Business Daily.

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Regeneron Pharmaceuticals (REGN) dipped to a four-year low Thursday on a mixed first-quarter report that featured expected Dupixent and Praluent misses, but also a surprise after blockbuster Eylea topped U.S. estimates.

On the stock market today, Regeneron slipped 1.3% to close at 292.41, canceling out earlier increases of nearly 4%. Shares of partner Sanofi (SNY) rose a fraction to 39.12. Meanwhile, biotech stocks collectively toppled 2.2%.

Eylea, a treatment for several eye diseases, raked in $984 million in U.S. sales. Revenue grew 15% year over year to beat the consensus for $961 million, according to several analysts. The beat is a surprise after Roche (RHHBY) also topped expectations for its competing drug Lucentis.

"This first-quarter result keeps Eylea on track to post a meaningful 7% year-over-year growth vs. 2017 U.S. sales of $3.7 billion," RBC analyst Kennen MacKay wrote in a note to clients. He kept his sector perform rating on Regeneron.

Mixed First Quarter

But the rest of the quarter was more mixed. Total revenue of $1.51 billion lagged some estimates, including the consensus of analysts polled by Zacks Investment Research for $1.53 billion. But it topped less bullish estimates by $10 million, Piper Jaffray analyst Christopher Raymond said.

Adjusted profit of $4.67 per share grew 60% year over year and beat views for $4.51.

As expected, products developed with Sanofi — eczema drug Dupixent, cholesterol drug Praluent and arthritis drug Kevzara — all missed. Dupixent brought in $131 million, Praluent generated $60 million and Kevzara accounted for $12 million.

"So no big surprise there," Raymond said in a note to clients. He reiterated his overweight rating on Regeneron.

Overall, collaboration revenue of $189 million from Sanofi lagged the consensus for $231 million, Raymond James analyst Laura Chico said in a note to clients. But Bayer (BAYRY) collaboration revenue of $248 million topped by $11 million.

Regeneron also lowered the high-end of its 2018 guidance for Sanofi collaboration revenue. It now expects $450 million to $485 million, down from earlier estimates for $450 million to $500 million.

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