Regeneron Reports Mixed Q3 Sales as Eylea Franchise Remains Under Pressure

Pictured: Regeneron logo on a light brown building

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Despite disappointing third-quarter results for Regeneron’s high-dose Eylea injection, analysts continued to be cautiously optimistic about the company’s promising cancer, immunology and genetic medicines pipeline.

Regeneron posted its third-quarter earnings report on Thursday, touting strong year-over-year growth and global revenues that topped the consensus estimate—but failed to impress investors. The company’s shares dropped approximately 10% in reaction to the financial results.

Much of the investor concern seems to stem from the disappointing performance of Regeneron’s Eylea (aflibercept) franchise. While total Eylea sales grew 3% to $1.54 billion in Q3, revenues for its high-dose formulation—which was approved in August 2023—fell 5% short of analysts’ expectations, bringing in $392 million versus $414 million. The original formulation of Eylea took a 21% hit in the quarter, with sales dropping to $1.15 billion from $1.5 billion during the same period last year.

Jefferies analyst Akash Tewari in an investor note pointed to several “key issues” that are likely holding back the uptake of high-dose Eylea. These include less frequent dosing of every eight or every 16 weeks, which some doctors might not be comfortable switching their patients to. Approval of the high-dose injection for retinal vein occlusion might also help deliver a sales bump, Tewari said.

However, the “biggest catalyst” to boosting uptake of high-dose Eylea would be a pre-filled syringe product, which Regeneron expects to launch in mid-2025, according to Tewari.

Compounding investors’ concerns is the impending entry of Amgen’s Eylea biosimilar Pavblu, which was approved in August 2024. The next month, Regeneron’s legal bid to block the biosimilar’s entry into the U.S. market failed after West Virginia judge Thomas Kleeh in a sealed ruling denied Regeneron’s motion for preliminary injunction versus Amgen.

Soon after the court win, Amgen announced that it was planning an at-risk launch of Pavblu, according to reporting from Fierce Pharma at the time.

However, Regeneron seems largely unfazed by the performance of its Eylea business, with CEO Leonard Schleifer touting the company’s “strong quarter” in an analyst call on Thursday. Regeneron brought in $3.72 billion in Q3, an 11% jump from the same period in 2023.

Regeneron’s other products performed well in the quarter. BMO Capital Markets analyst Evan Seigerman in a note to investors called Sanofi-partnered Dupixent a “bright spot” for Regeneron, with its end user sales exceeding analyst expectations by 7%. Dupixent’s recent approval for chronic obstructive pulmonary disease will likely boost the sales for the biologic even further.

Seigerman said that his firm “remains positive on the potential for Eyela HD to smoothen the erosion curve of the company’s aflibercept.” Regeneron’s pipeline is also approaching a “significant number” of readouts in the coming months, which could help further bolster the pharma’s balance sheet, he wrote.

Truist Securities analyst Srikripa Devarakonda in an investor note also expressed confidence in the company’s pipeline, writing “we continue to believe that REGN’s broad pipeline across oncology, internal/genetic medicines, I&I and ophthalmology remain overlooked.”

Tristan is an independent science writer based in Metro Manila, with more than eight years of experience writing about medicine, biotech and science. He can be reached at tristan.manalac@biospace.com, tristan@tristanmanalac.com or on LinkedIn.
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