Regeneron (Nasdaq: REGN) climbs after raising Eylea sales outlook

Northern, WI 2/13/12 (StreetBeat) – Shares of Regeneron Pharmaceuticals Inc. (Nasdaq: REGN) jumped Monday after the company predicted much stronger sales of its eye drug Eylea.

Regeneron launched Eylea in November and said sales during the fourth quarter totaled $24.8 million. It now expects $250 million to $300 million in U.S. sales of the drug in 2012, up from its previous forecast of $140 million to $160 million.

Regeneron stock jumped $11.18, or 11.percent, to $113.26 in morning trading.

The Food and Drug Administration approved Eylea on Nov. 18 as a treatment for "wet" age-related macular degeneration, or wet AMD, which is a common cause of blindness. Eylea was the first drug approved to treat the disease since Roche's drug Lucentis in 2006. Patients who take Eylea don't have to see their doctor as often as patients who take Lucentis, and patients who take Eylea may not need to use it as often. One clinical study indicated that Eylea was more effective than Lucentis after a year of treatment.

Regeneron has asked the FDA to approve Eylea as a treatment for a second eye condition, central retinal vein occlusion, and its partner Bayer HealthCare is seeking approval to market Eylea in Japan and the European Union.

In the fourth quarter, Regeneron lost $53.4 million, or 58 cents per share. A year earlier it took a loss of $14.6 million, or 17 cents per share. Revenue fell 8 percent to $123 million from $133.7 million, because of a decrease in revenue from collaborations with other drugmakers.

Analysts expected the company to report a loss of 60 cents per share and $132 million in revenue, according to FactSet.

After the approval of Eylea, Regeneron's product sales climbed to $29.8 million from $5.3 million. The company also sells Arcalyst, which is used to treat a group of rare, inherited auto-inflammatory conditions called CAPS. It is trying to get Arcalyst approved as a treatment for gout. Revenue from a partnership with Sanofi of France fell to $77 million from $82.1 million, and revenue from other collaborations dropped to $9.4 million from $34.9 million.

In 2011, Regeneron lost $221.8 million, or $2.45 per share, compared with a 2010 loss of $104.5 million, or $1.26 per share. Annual revenue fell 3 percent to $445.8 million from $459.1 million.

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