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Regeneron Pharmaceuticals Inc. pages available for free this week:
- Balance Sheet: Assets
- Analysis of Profitability Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Dividend Discount Model (DDM)
- Total Asset Turnover since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
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Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The financial data reveals several notable trends in the company's revenue composition, cost structure, profitability, and expense management over the analyzed periods.
- Revenue Composition
- The share of net product sales as a percentage of total revenues demonstrated a decline, moving from 65.52% in 2020 to approximately 53.72% by 2024. Conversely, collaboration revenue increased significantly from 27.92% in 2020 to 42.65% in 2024, indicating a shift towards greater reliance on partnerships or contractual agreements as sources of income. Other revenues remained relatively small, fluctuating between 1.75% and 6.56%, with a slight decrease towards the end of the period.
- Cost Structure
- Cost of goods sold (COGS) as a percentage of revenues exhibited variability but remained within a narrow range (-5.79% to -11.03%). The cost related to collaboration and contract manufacturing fluctuated between -4.13% and -7.39%, remaining a significant component of total cost of revenues, which moved from -12.82% to -15.17% initially and stabilized near -13.87% by 2024. This suggests moderate control over production and collaboration costs, maintaining overall gross profit margins.
- Profitability Indicators
- Gross profit margins were consistently strong, ranging from 84.83% to 87.18%, reflecting efficient cost management relative to revenue. Income from operations displayed a declining trend, dropping from 55.67% in 2021 to 28.10% in 2024, which indicates increased operational expenses or changes in revenue quality despite high gross margins. Net income as a percentage of revenues showed a similar downward trend from a peak of 50.25% in 2021 to about 31.07% in 2024, highlighting reduced bottom-line profitability over time.
- Expense Management
- Research and development (R&D) expenditure exhibited volatility but generally increased as a percentage of revenues, rising from -17.80% in 2021 to -36.14% in 2024, suggesting intensified investment in innovation activities. The acquired in-process R&D costs remained relatively small but variable, peaking at -2.10% in 2022 and then decreasing. Selling, general, and administrative expenses (SG&A) increased from -11.35% to -20.80%, indicating growing overhead or marketing costs which may partly explain the reduced operational income margins.
- Other Income and Expenses
- The net impact of other operating income and expense fluctuated near zero, with a slight negative trend towards 2024. Other income, net of interest expenses, contributed positively throughout, increasing notably to 5.56% in 2024. Interest expense remained low and fairly stable, ranging around -0.39% to -0.67%, which indicates manageable debt-related costs. Income tax expense as a proportion of revenues decreased over time, reaching -2.59% in 2024, which may be indicative of effective tax planning or changes in taxable income.
Overall, the data suggests the company is experiencing a strategic shift in revenue sources with growing collaboration income replacing a declining proportion of product sales. While gross profitability remains high, increasing research and administrative costs have compressed operating and net income margins. The trend points to significant investments in growth and innovation but raises considerations regarding operational efficiency and cost control moving forward.