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Regeneron Pharmaceuticals and Its Financial Performance

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Revenue trend

Regeneron Pharmaceuticals (REGN) generated total revenues of $5.8 billion in fiscal 2017 compared with $4.8 billion in fiscal 2016. The company generates a majority of its revenues from product sales and through collaboration agreements with Sanofi (SNY) and Bayer.

Product sales were $3.7 billion in fiscal 2017 compared with $3.3 billion in fiscal 2016. Collaboration revenues from Sanofi and Bayer increased from $1.4 billion in fiscal 2016 to $1.8 billion in fiscal 2017.

For fiscal 2018, Regeneron Pharmaceuticals is expected to report revenues of $6.3 billion. Its peers Alimera Sciences (ALIM), Momenta Pharmaceuticals (MNTA), and Pfizer (PFE) are expected to report revenues of $51 million, $133 million, and $54.4 billion, respectively, in fiscal 2018.

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Operating expenses

Total expenses for Regeneron Pharmaceuticals increased from $3.5 billion in fiscal 2016 to $3.7 billion in fiscal 2017. They include research and development expenses, SG&A (selling, general, and administrative) expenses, cost of goods sold, and cost of collaboration and contract manufacturing.

Research and development expenses were flat at $2 billion in fiscal 2017 and fiscal 2016. SG&A expenses increased to $1.3 billion in fiscal 2017 from $1.1 billion in fiscal 2016. Cost of goods sold was $202 million in fiscal 2017 compared with $194 million in fiscal 2016. Cost of collaborations witnessed a significant rise from $105 million in fiscal 2016 to $194 million in fiscal 2017.

Bottom line

Net income for Regeneron Pharmaceuticals increased to $1.1 billion in fiscal 2017 compared with $895 million in fiscal 2016. That translates to a significant rise in net income per share, from $7.70 in fiscal 2016 to $10.34 in fiscal 2017. Cash and equivalents for Regeneron Pharmaceuticals increased to $2.8 billion at the end of fiscal 2017 from $1.9 billion in fiscal 2016.

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