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Regeneron Pharmaceuticals’ Major Revenue Sources in 4Q15

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Increased net product sales

Regeneron Pharmaceuticals (REGN) earns revenue from net product sales, collaboration, and technology licenses. Its net product sales and collaboration revenues constitute major parts of its total revenue.

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Net product sales

Regeneron’s product sales make up ~63%–68% of the company’s total revenues. Regeneron reported net product sales amounting to $750 million during 4Q15 and $2.7 billion in fiscal 2015, representing a robust yearly surge of 53.6% in fiscal 2015 sales.

Notably, Eylea is the key product in Regeneron’s portfolio. Eylea competes with other diabetic macular edema drugs like Allergan’s (AGN) Ozurdex and Pfizer’s (PFE) Macugen.

Sanofi collaboration revenue

Sanofi’s revenue amounted to $165.7 million during 4Q15 and accounts for Regeneron’s share of loss associated with antibody commercialization, reimbursements for R&D (research and development) expenses, and commercialization expenses.

Bayer HealthCare revenue

Bayer HealthCare’s revenue contribution amounted to ~$164.8 million in 4Q15. Outside the US, Eylea’s net sales amounted to $413 million during 4Q15, out of which Regeneron recorded $140 million as its share of net profit. Bayer HealthCare markets Eylea outside the United States and in countries other than Japan.

Bayer HealthCare’s collaboration in revenue includes Regeneron’s share of profit for Eylea’s sales outside the US, sales milestones, cost sharing of development expenses, and others.

To avoid volatility and the direct risks associated with buying a company’s stock, investors can take options like the First Trust NYSE Arca Biotechnology Index Fund (FBT), which has about 3.3% exposure to Regeneron Pharmaceuticals.

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