EYLEA HD and EYLEA

- U.S.

- ROW

Dupixent

Libtayo

Praluent

Kevzara

REGEN-COV

Other Products

Total Revenue

bb491dfb445b69e3f2bfc3857f7fbfdc32c04c72b328183a8312c7ba6cfe6e8a

4bac706600137ef5db8602bf4077405ec73931dc3b9ff2749b66c7b4a9ae8c50

The lower cash balance in Q1 2024 was driven by a net decrease of **$128 million** resulting from significantly higher outflows in investing activities. Despite generating **$1,512.5 million** in operating cash and a modest **$47.1 million** from financing activities, the company used **$(1,687.1) million** in investing activities. The major components of these outflows included substantial purchases of marketable securities, capital expenditures, and a payment for the Libtayo intangible asset, which together led to the lower cash and cash equivalents balance of **$2,602 million** in Q1 2024.  **[0001804220-24-000017_regn-20240331.htm:43]** **[0001804220-24-000017_regn-20240331.htm:2]** 

Why was Cash and Cash Equivalents lower in Q1 2024?

The significant increase in Total Assets in FY 2024 was driven by several factors. **Noncurrent Marketable Securities** rose significantly from **$5,396.5 million** to **$8,900.1 million** (an increase of **$3,503.6 million**), while **Property, Plant, and Equipment (Net)** increased by **$453.3 million** due to capital expenditures for facility expansions and acquisitions. Additionally, **Deferred Tax Assets** grew by **$738.7 million**, **Intangible Assets (Net)** increased by **$110.0 million** (primarily from additions related to contingent consideration and in-process R&D programs), and **Other Noncurrent Assets** rose by **$691.9 million** (enhanced by increases in equity investments measured at fair value). Together, these changes contributed to the overall increase of **$4,679.2 million** in Total Assets for FY 2024.  **[0001804220-25-000011_regn-20241231.htm:161]** **[0001804220-25-000011_regn-20241231.htm:183]** **[0001804220-25-000011_regn-20241231.htm:129]** **[0001804220-25-000011_regn-20241231.htm:184]** 

What drove the significant increase in Total Assets in FY 2024?

The **rise in Total Liabilities in Q4 2024** was primarily driven by several factors. Regeneron experienced an **increase in accounts payable** (from **$606.6 million** to **$789.5 million**) and an **increase in accrued expenses and other current liabilities** (from **$2,357.9 million** to **$2,527.1 million**), reflecting higher operational costs such as payroll, clinical expenses, and income tax-related expenditures.  **[0001804220-25-000011_regn-20241231.htm:161]** **[0001804220-25-000011_regn-20241231.htm:185]**  Additionally, **deferred revenue** grew from **$585.6 million** to **$813.4 million**, suggesting growth in upfront payments or new collaboration agreements.  **[0001804220-25-000007_exhibit991q42024.htm:14]**  Finally, the company saw a significant increase in **other noncurrent liabilities** (from **$854.1 million** to **$1,571.4 million**), which also contributed to the overall rise in liabilities.  **[0001804220-25-000011_regn-20241231.htm:161]** 

What factors contributed to the rise in Total Liabilities in Q4 2024?

Based on the information provided, **Regeneron Pharmaceuticals' Other Noncurrent Liabilities increased from **$854.1 million as of Q4 2023** to **$1,463.2 million as of Q2 2024**. However, the documents do not provide **specific details** explaining the reasons for this change.  **[0001804220-24-000028_regn-20240630.htm:2]** 

Why did Other Noncurrent Liabilities surge in Q2 2024?

The documents indicate that the **significant decline** from **$8,114.8 million** in Q4 2023 to **$6,524.3 million** in Q4 2024 (**$(1,590.5) million** decrease) might be related to **substantial cash flows used in investing activities** and **significant capital expenditures** for expanding facilities. However, the documents do not provide definitive reasons for the decline, only potential contributing factors.  **[0001804220-25-000011_regn-20241231.htm:129]** 

What caused the decline in Marketable Securities - Current in Q4 2024?

eb0ea441edec880e7073ca4a2a425b34d43cbdcdb989ab5249d92ce573ce024a

The low **Operating Cash Flow** in Q2 2024 can be attributed to several factors. Although **net income increased** during the period, adjustments such as increased **inventories** (from –$147.2 million in 2023 to –$337.6 million in 2024), a substantial rise in **prepaid expenses and other assets** (from –$8.9 million in 2023 to –$604.2 million in 2024), and variations in **deferred revenue** significantly impacted cash flow. These changes in working capital, along with other factors like differences in non-cash adjustments including **depreciation and amortization** and **stock-based compensation**, helped explain why the net cash provided by operating activities was only **$354 million** in Q2 2024 compared to **$1,022.40 million** in Q2 2023.  **[0001804220-24-000028_regn-20240630.htm:6]** **[0001804220-24-000028_regn-20240630.htm:47]** 

Why was Operating Cash Flow so low in Q2 2024?

What led to the drastic drop in Free Cash Flow in Q2 2024?

The documents indicate that the heavy negative swing in Total Adjustments in **Q2 2024** was due to several factors that typically include **depreciation and amortization, stock‐based compensation expense, gains or losses on marketable securities, deferred income taxes**, and changes in working capital items such as **accounts receivable, inventories, and accounts payable**. However, they do not provide a detailed breakdown to pinpoint exactly which of these components drove the substantial shift.  **[0001804220-24-000028_regn-20240630.htm:6]** 

What caused Total Adjustments to swing so heavily negative in Q2 2024?

8ee695728303b0157045ed7044f7445c7db5aa748204dfe59d9839c5f511e140

The **significant increase** in Net Income for Q2 2024 was primarily driven by **multiple factors**. First, there was **revenue growth** with total revenues increasing by **12%**, largely due to **strong sales of EYLEA HD in the U.S., higher collaboration revenue from Sanofi, and global growth in LIBTAYO sales**.  **[0001804220-24-000026_exhibit991q22024.htm:0]** **[REGN_3395643_9]**  Second, **product performance** improved as EYLEA HD and combined U.S. net product sales rose by **2%** and LIBTAYO’s global sales increased by **42%**.  **[0001804220-24-000026_exhibit991q22024.htm:0]** **[REGN_3395643_1]**  Third, the **collaboration revenue** from the Sanofi partnership saw an increase in Regeneron’s share of profits from **$751 million to $988 million**.  **[0001804220-24-000028_regn-20240630.htm:40]** **[0001804220-24-000026_exhibit991q22024.htm:2]**  Finally, there was a significant change in **other income**, which turned from a net unrealized loss of **$31 million** to a gain of **$393 million**, contributing to a considerable boost in overall net income.  **[0001804220-24-000026_exhibit991q22024.htm:3]** **[0001804220-24-000028_regn-20240630.htm:40]** 

What drove the significant increase in Net Income in Q2 2024?

The **EPS spike in Q2 2024** was primarily driven by several factors. **Revenue growth** played a major role, with strong sales performance from products like **EYLEA HD**, **Dupixent**, and **Libtayo** boosting total revenues. Additionally, the company benefited from **improved operating income** even as operating expenses increased. A significant contributor was the swing in **other income**, where **net unrealized gains on equity securities** of **$393 million** replaced the net losses seen previously. These factors were further supported by a **low effective tax rate** and **share repurchases** that reduced the number of shares outstanding, thereby magnifying the earnings per share.  **[REGN_3395643_9]** **[0001804220-24-000026_exhibit991q22024.htm:0]** **[REGN_3395643_1]** **[0001804220-24-000026_exhibit991q22024.htm:3]** 

What factors contributed to the EPS spike in Q2 2024?

Regeneron’s Q3 2024 EPS was significantly higher than previous trends primarily due to **strong revenue growth**—an 11% increase that drove total revenues to **$3.72 billion**—and a **significant boost in profits from its collaboration with Sanofi**, which was driven by higher volumes and improved margins. Additionally, increased **net product sales** for key products such as **EYLEA HD and EYLEA** and effective cost management helped drive the robust increase, more than overcoming a modest negative impact from an acquired IPR&D charge. These factors combined explain the jump in basic net income per share from approximately **$9.48** in Q3 2023 to **$12.40** in Q3 2024.  **[REGN_3405018_9]** **[0001804220-24-000040_regn-20240930.htm:10]** **[0001104659-24-106432_tm2419098d1_8k.htm:1]** **[0001804220-24-000038_exhibit991q32024.htm:0]** 

Why was EPS in Q3 2024 significantly higher than previous trends?

The drop in Operating Income in Q1 2024 was primarily driven by **increased operating expenses**—with significant rises in **R&D, SG&A, and COGS**—along with a **slight revenue decline** (a 1% decrease in total revenues due mainly to lower U.S. EYLEA net product sales) and an **additional operating charge** related to the rise in the fair value of a contingent consideration liability from the Decibel Therapeutics acquisition.  **[0001804220-24-000017_regn-20240331.htm:38]** **[0001804220-24-000015_exhibit991q12024.htm:3]** **[0001804220-24-000017_regn-20240331.htm:38]** **[0001804220-24-000015_exhibit991q12024.htm:2]** 

What caused the drop in Operating Income in Q1 2024?

c898547130b5fd753fd39e1977c1ecf1feb8cf262ab8d4bbb7f6ee74bc6f424d

Cash and Cash Equivalents (USD, millions)

Marketable Securities - Current (USD, millions)

Accounts Receivable, Net (USD, millions)

Inventories (USD, millions)

Prepaid Expenses and Other Current Assets (USD, millions)

Marketable Securities - Noncurrent (USD, millions)

Property, Plant, and Equipment, Net (USD, millions)

Intangible Assets, Net (USD, millions)

Deferred Tax Assets (USD, millions)

Other Noncurrent Assets (USD, millions)

Total Assets (USD, millions)

Accounts Payable (USD, millions)

Accrued Expenses and Other Current Liabilities (USD, millions)

Deferred Revenue - Current (USD, millions)

Long-Term Debt (USD, millions)

Finance Lease Liabilities (USD, millions)

Deferred Revenue - Noncurrent (USD, millions)

Other Noncurrent Liabilities (USD, millions)

Total Stockholders' Equity (USD, millions)

Total Liabilities and Stockholders' Equity (USD, millions)

642e2756dad4a76c5ae5152e36a25e881df59163e5b74ee0c709138f072c31a6

Net cash provided by operating activities (USD, millions)

Capital expenditures (USD, millions)

cd668e5402482f228f0c7e55447982441e0e9edde5817ea4fe2882419e2bf25b

Net Product Sales (USD, millions)

Collaboration Revenue (USD, millions)

Other Revenue (USD, millions)

Total Revenues (USD, millions)

Research and Development Expenses (USD, millions)

Acquired In-Process Research and Development (USD, millions)

Selling, General, and Administrative Expenses (USD, millions)

Cost of Goods Sold (USD, millions)

Cost of Collaboration and Contract Manufacturing (USD, millions)

Other Operating Expense (Income), Net (USD, millions)

Total Expenses (USD, millions)

Income from Operations (USD, millions)

Other Income (Expense), Net (USD, millions)

Interest Expense (USD, millions)

Total Other Income (Expense) (USD, millions)

Income Before Income Taxes (USD, millions)

Income Tax Expense (USD, millions)

Net Income (USD, millions)

Net Income per Share - Basic (USD)

Net Income per Share - Diluted (USD)

Weighted Average Shares Outstanding - Basic (Millions)

Weighted Average Shares Outstanding - Diluted (Millions)

7697f1654b1463d10900d37e203fe35a38730891f73d7767df76d1116208354b

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

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1f390227f279764aae58f6a0c94ec7f4cea7966d6c89697c637cd3520321dd1c

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Average headcount (headcount)

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63951aa6ae721e1e925a0886afc9b0f14ee86383c4564060ba1687ac3b74565e

REGENERON PHARMACEUTICALS (REGN)

Financials