Regeneron Pharmaceuticals, Inc. · NASDAQ:REGN
Regeneron Pharmaceuticals — Investor Presentation (January 2017)
15 slides from Regeneron Pharmaceuticals's investor presentation, Jan 9, 2017
Slide 1: Forward-looking statements
This presentation includes forward-looking statements that involve risks and uncertainties relating to future events and the future performance of Regeneron Pharmaceuticals, Inc. (“Regeneron” or the “Company”), and actual events or results may differ materially from these forward-looking statements.
Slide 2: 2017 Financial Overview
2017 FINANCIAL Overview 3 Review collaboration accounting Addition of Teva collaboration in September 2016 Expiration of Sanofi Antibody Discovery Collaboration funding on December 31, 2017 and three-year tail Differentiate between ‘Cost of Goods Sold’ (COGS) and ‘Cost of Collaboration and Contract
Slide 3: Collaboration Revenue Modeling
Collaboration Revenue modeling 4 Sanofi and Bayer Collaborations Teva Collaboration 2017 income statement modeling remains consistent with 2016 filings Sanofi collaboration revenue line will continue to encompass both the antibody and the I/O collaborations Reimbursement of Regeneron R&D for antibod
Slide 4: Sanofi Antibody Collaboration Modeling
SANOFI ANTIBODY COLLABORATION MODELING 5 The Sanofi/Regeneron Antibody Discovery Collaboration Agreement expires on December 31, 2017 Regeneron will receive up to $130MM in Antibody Discovery funding in 2017, after which annual funding will be discontinued Notwithstanding this expiration, Sanofi has
Slide 5: COGS and Cost of Collaboration and Contract Manufacturing Modeling
COGS and cost of Collaboration and contract manufacturing MODELING 6 Cost of Goods Sold Cost of Collaboration and Contract Manufacturing Cost of goods sold primarily consists of costs in connection with producing EYLEA commercial supplies, and various start-up costs and unabsorbed overhead costs in
Slide 6: Reimbursed R&D Modeling
REIMBURSED R&D MODELING 7 Late-stage collaborated programs include Praluent® (Sanofi) Dupixent® (Sanofi) Sarilumab (Sanofi) Fasinumab (Teva, MTPC) PD-1 monotherapy program funded on a 50/50 basis All other I/O molecules are funded by Regeneron and Sanofi on a 25/75 basis, respectively, from discover
Slide 7: R&D Modeling
R&D MODELING 8 FORECASTING R&D ‘Project Costs’ – found in our quarterly filings, is a useful tool in determining how Regeneron’s reimbursed and unreimbursed R&D may fluctuate year-over-year Provides insight into how spending for programs will increase or decrease with clinical advancement, the initi
Slide 8: Tax Overview
Tax overview 9 We believe potential tax reform proposals under discussion would be mostly positive for Regeneron Lowering U.S. corporate tax rate would be beneficial, as the majority of Regeneron earnings are in the U.S. Repatriation provisions would not impact Regeneron, as we do not currently have
Slide 9: Tarrytown Campus Headquarters Transaction
TARRYtown campus headquarters transaction 10 Entered into a Purchase Agreement with affiliates of Biomed Realty, L.P. to purchase Corporate Headquarters 150 acres of adjacent office and lab space in the towns of Mount Pleasant and Greenburgh, N.Y. Regeneron occupies 80% (1.2M ft2) / Tenants occupy 1
Slide 10: Tarrytown Campus Headquarters Transaction economics
TARRYtown campus headquarters transaction 11 2016 Capital Expenditures Guidance of $480MM - $510MM remains in place Closing of transaction expected in First Quarter 2017 Provides more economical expansion opportunities on existing campus Economics of Transaction(1) Estimated Average After-Tax Annual
Slide 11: 2017 Financial Guidance
2017 FINANCIAL GUIDANCE1,2 12 $950MM - $1,025MM Non-GAAP Unreimbursed R&D: $1,175MM - $1,250MM Non-GAAP SG&A: This includes REGN incurred commercial-related expenses for Sanofi collaboration antibodies $400MM - $450MM Sanofi Reimbursement of Regeneron Commercialization-Related Expenses 32% - 38% Eff
Slide 12: 2017 Financial Guidance
2017 FINANCIAL GUIDANCE'2 Non-GAAP Unreimbursed R&D: $950MM - $1,025MM Non-GAAP SG&A: This includes REGN incurred commercial-related $1 1 75MM - $1 ,250M M expenses for Sanofi collaboration antibodies Sanofi Reimbursement of Regeneron Commercialization-Related Expenses $400MM - $450MM Effective Tax
Slide 13: Q&A
Q&A REGENERON 13
Slide 14: Overview of Sanofi I/O Collaboration Modeling
OVERVIEW OF SANOFI I/O COLLABORATION MODELING 15 SANOFI WILL PROVIDE UP TO $2.17 BILLION INVESTMENT $640 million in upfront payments is being amortized, currently, over eight years $1 billion of funding from discovery through proof of concept, is being split 75/25 between Sanofi and Regeneron $650 m
Slide 15: Overview of Sanofi I/O Collaboration Modeling
OVERVIEW OF SANOFI I/O COLLABORATION MODELING Fociseamncs | Three Months Ended SANOFI WILL PROVIDE UP TO $2.17 BILLION September 30, INVESTM ENT a Revenue 2015 2014 ‘Anti * $640 million in upfront payments is being amortized Reimbyrement of Regeneroasewearchaad = |g 4097 currently, over eight years
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