Regeneron Pharmaceuticals’ (REGN) total collaboration revenue in 1Q16 came in at $399 million. Higher collaboration revenue was due to the following factors:
- higher R&D (research and development) expense reimbursement under antibody collaboration with Sanofi (SNY)
- increased non-US net profit from Eylea
- R&D expense reimbursements
- amortization of up-front payments “received in connection with the immuno-oncology collaboration with Sanofi”
Sanofi and Bayer collaboration agreements
In 1Q16, collaboration revenue from Sanofi (SNY) increased to $219.7 million from $173.4 in 1Q15 while the collaboration revenue from Bayer jumped to $179.6 million from the previous year’s comparable revenue of $123.8 million. Sanofi collaboration revenues include reimbursements related to antibody and immuno-oncology programs. For details on the terms of the collaboration agreement with Sanofi, read Regeneron Enters into a Collaboration with Sanofi-Aventis.
Bayer collaboration revenues include net profit from Eylea’s non-US sales along with the joint development and commercialization of Platelet-Derived Growth Factor Receptor Beta (PDGFR-beta) and angiopoietin-2 (Ang2) outside the US. The details of the terms of the collaboration agreement with Bayer can be found at Regeneron Enters into a Collaboration with Bayer HealthCare.
To control excessive company-specific risks but at the same time get exposure to REGN, you can invest in the iShares Russell 1000 Growth ETF (IWF). The fund invests 4.2% of its holdings in the biotechnology sector. Bristol-Myers Squibb (BMY), Gilead Sciences (GILD), and Amgen (AMGN) account for 1.1% each of the fund’s total assets. REGN accounts for 0.28% of IWF’s total holdings.
In the next article in this series, we’ll further analyze the key drug Eylea’s performance in 1Q16.