Regeneron revenues leap, boosted by stronger than expected sales of Eylea

US biotech firm Regeneron Pharmaceuticals (Nasdaq: REGN) reports that its blockbuster ophthalmic drug Eylea (aflibercept) sales in the fourth quarter of 2013 rose 46% to $401 million and were up 68% to $1.41 billion for the full year, beating the company’s own forecasts. The firm’s shares rose 2.3% to $311.00 in early trading this morning.

Total group revenues grew 47% to $610 million for the quarter, with non-generally accepted accounting principles (GAAP) net income up 51% to $259 million and non-GAAP earnings per share of $2.24. GAAP income and EPS were $97 million and $0.86, respectively, down 79%. Wall Street consensus expectation was for Regeneron to report $0.99 and $579.92 million revenue.

Regeneron said the decrease in GAAP net income resulted primarily from: the non-cash tax benefit of $336 million recorded in the fourth quarter of 2012 primarily related to the company's release of substantially all of the valuation allowance associated with its deferred tax assets; the company's recognition of an income tax provision commencing in 2013; and higher operating expenses in 2013.