Regeneron Pharmaceuticals Inc. (REGN)

Product revenue consists of U.S. sales of EYLEA, Libtayo, and ARCALYST. Revenue from product sales is recognized at a point in time when Regeneron’s customer is deemed to have obtained control of the product, which generally occurs upon receipt by the distributors and specialty pharmacies. Regeneron’s written contracts with its customers stipulate product is shipped freight on board destination (FOB destination).

Regeneron sells its marketed products in the United States to several distributors and specialty pharmacies. Under these distribution models, the distributors and specialty pharmacies generally take physical delivery of product. For EYLEA and Libatyo, the distributors and specialty pharmacies generally sell the product directly to healthcare providers.

The amount of revenue Regeneron recognizes from product sales varies due to rebates, chargebacks, and discounts provided under governmental and other programs, distribution-related fees, and other sales-related deductions. In order to determine the transaction price, Regeneron estimates, utilizing the expected value method, the amount of variable consideration that Regeneron will be entitled to. This estimate is based upon contracts with customers and government agencies, statutorily-defined discounts applicable to government-funded programs, historical experience, estimated payer mix, and other relevant factors. Regeneron reviews its estimates of rebates, chargebacks, and other applicable provisions each period and records any necessary adjustments in the current period’s net product sales.

Source: 10-K (filing date: 2019-02-07).

Regeneron Pharmaceuticals Inc., Income Statement, Revenues

US$ in thousands

	12 months ended	Dec 31, 2018		Dec 31, 2017		Dec 31, 2016		Dec 31, 2015		Dec 31, 2014
	Revenues

Based on: 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-11), 10-K (filing date: 2015-02-12).