Regeneron Pharmaceuticals Inc. (NASDAQ:REGN)

The financial data displays significant fluctuations across several key metrics over the five-year period ending in 2024. There is a notable variation in revenue components, costs, and profitability that suggest shifts in operational focus and market conditions.

Revenue Trends

Net product sales experienced a sharp increase from 5.57 billion USD in 2020 to a peak of 12.12 billion USD in 2021, followed by a steep decline to 6.89 billion USD in 2022. A recovery phase is observed in 2023 and 2024, with sales rising to 7.08 billion USD and 7.63 billion USD, respectively. Conversely, collaboration revenue shows a consistent and strong upward trajectory throughout the period, increasing from 2.37 billion USD in 2020 to 6.06 billion USD by 2024. Other revenue remains relatively stable with slight fluctuations, peaking at around 536 million USD in 2023 before a minor decrease in 2024. Overall revenues mirror these trends, surging to 16.07 billion USD in 2021, followed by a dip and gradual recovery, achieving 14.20 billion USD in 2024.

Cost and Expense Analysis

The cost of goods sold follows a similar pattern to net product sales with a significant jump from approximately 492 million USD in 2020 to over 1.77 billion USD in 2021, then a regression to lower levels in subsequent years, though costs rise again in 2024. Costs associated with collaboration and contract manufacturing display steady moderate growth, increasing from 628 million USD in 2020 to about 883 million USD in 2024. Total cost of revenues shows a pronounced increase in 2021, then a decrease and stabilization thereafter. Research and development expenses have escalated consistently year over year, from 2.65 billion USD in 2020 to over 5.13 billion USD by 2024, indicating growing investment in product development and innovation. Similarly, selling, general, and administrative expenses show a steady increase through the period, reflecting expanded administrative and commercial activities.

Profitability and Income

Gross profit aligns closely with overall revenue trends, peaking in 2021 at 13.63 billion USD, declining through 2022, and recovering gradually thereafter to 12.23 billion USD in 2024. Income from operations exhibits a strong performance in 2021 at 8.95 billion USD but then declines significantly in the following years, settling near 3.99 billion USD in 2024. Other income (expense), net, remains positive over the period, with a notable increase in 2024 to 844 million USD, which helps offset some operating income decline. Interest expenses remain relatively stable and low compared to other expenses. Income before income taxes mirrors the pattern of operating income but shows some recovery in 2024. After accounting for income tax expense, which is variable but generally lower in later years, net income follows a similar trajectory—peaking in 2021, declining, and then modestly recovering to 4.41 billion USD in 2024.

Overall Insights

The data suggests that after a strong performance and significant revenue surge in 2021, the company faced challenges in product sales in 2022, which impacted overall revenues and profits. However, collaboration revenue has grown steadily, providing a stabilizing revenue stream. Increased spending on research and development and selling, general, and administrative expenses indicates strategic investment in growth and commercial expansion. The recovery in net product sales and other income components by 2024, along with maintained gross profit margins, points to a gradual return to improved profitability, despite somewhat lower operating income relative to the peak year. Tax expenses have become more moderate, contributing to a steadier net income performance in recent years.