Common-Size Income Statement
Quarterly Data
Regeneron Pharmaceuticals Inc., common-size consolidated income statement (quarterly data)
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
An analysis of the common-size income statement reveals a fundamental shift in the revenue composition and operating cost structure over the observed period. The company has transitioned from a primary reliance on net product sales toward a business model heavily driven by collaboration revenue, while simultaneously increasing its investment in research and development.
- Revenue Stream Diversification
- A pronounced inverse relationship is observed between net product sales and collaboration revenue. Net product sales, which accounted for as much as 80.53% of total revenues in mid-2021, experienced a steady decline, falling to 35.29% by the third quarter of 2026. Conversely, collaboration revenue grew from approximately 18% to 31% in 2021 to reach a peak of 58.65% by September 30, 2026. Other revenue remained a marginal contributor, though it showed a slight upward trend, peaking at 6.14% in late 2025.
- Gross Profitability and Cost of Sales
- Gross profit margins remained consistently high throughout the period, generally fluctuating between 80% and 89%. The cost of revenues, comprising cost of goods sold and cost of collaboration and contract manufacturing, remained relatively stable, typically ranging between 10% and 15%. This indicates that the shift in revenue mix from product sales to collaborations has not negatively impacted the overall gross margin profile.
- Operating Expense Trends
- Operating margins have been significantly compressed by rising expenditures in research and development (R&D). R&D expenses as a percentage of revenue increased from a range of 13.90% to 29.38% in 2021 to consistently higher levels, often exceeding 40% between 2024 and 2026. Selling, general, and administrative (SG&A) expenses also showed an upward trend through 2023, peaking near 22% before moderating to approximately 13% to 18% in 2026. These combined increases in operating spend contributed to a decline in income from operations, which dropped from peaks of 65.14% in 2021 to a low of 17.83% in early 2026.
- Net Income and Non-Operating Factors
- Net income margins exhibited significant volatility and a general downward trend compared to the early 2021 period. While net income margins frequently exceeded 40% in 2021, they settled into a lower range of 20% to 38% in the latter years. This volatility was partly influenced by "Other income (expense), net," which showed erratic swings, including substantial positive contributions in 2024 and 2025 that temporarily bolstered the bottom line despite the compression of operating income.
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