Regeneron Pharmaceuticals, Inc. · NASDAQ:REGN
Regeneron Pharmaceuticals — Investor Presentation (January 2018)
15 slides from Regeneron Pharmaceuticals's investor presentation, Jan 8, 2018
Slide 1: Note Regarding Forward-Looking Statements and Non-GAAP Financial Measures
NOTE REGARDING FORWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES 2 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 ev
Slide 2: 2018 Financial Overview
2018 FINANCIAL Overview 3 TAX REFORM SANOFI IO COLLABORATION MODELING CEMIPLIMAB MODELING REIMBURSED R&D OTHER REVENUE Impact of U.S. tax reform Review IO Collaboration modeling and Amended and Restated Investor Agreement Review the recording of cemiplimab net sales and profit/loss Overview of reimb
Slide 3: Tax reform
Tax reform 4 21% U.S. corporate tax rate will provide material benefit Majority of Regeneron’s earnings are currently subject to taxation in the U.S. Immediate expensing of certain business assets will provide cash flow benefit No one-time transition tax on overseas earnings; no permanently re-inves
Slide 4: Sanofi IO Collaboration Modeling
SANOFI IO COLLABORATION MODELING 5 Cemiplimab global development budget increased from current level of $650MM to $1.64Bn Expect 2018 spend and related reimbursement to increase: 4 pivotal trials for cemiplimab ongoing: cSCC, 1st-line NSCLC, 2nd-line cervical cancer, BCC 3 new molecules within IO to
Slide 5: Acceleration and Expanded investment of cemiplimab and dupilumab development programs
Acceleration and Expanded investment of cemiplimab and dupilumab development programs 6 Cemiplimab global development budget increased from current level of $650MM to $1.64Bn Significant incremental investment in development plans for dupilumab and REGN3500 Changes to Amended and Restated Investor A
Slide 6: Cemiplimab modeling
Cemiplimab modeling 7 U.S. cemiplimab net sales and U.S. cost of goods sold (COGS) will be recorded on Regeneron’s Income Statement (IS) Regeneron’s payment of Sanofi’s share of gross profit on U.S. sales of cemiplimab will be recorded in the COGS line on the Regeneron IS SG&A for U.S. cemiplimab wi
Slide 7: Reimbursed R&D Modeling
REIMBURSED R&D MODELING 8 Late-stage collaborated programs include: Praluent® (Sanofi) Dupilumab (Sanofi) Sarilumab (Sanofi) Fasinumab (Teva, MTPC) Cemiplimab (Sanofi) CD20xCD3 is not included in the IO collaboration REIMBURSED R&D COMPONENTS – 2018 & BEYOND Program Phase Collaborator Approximate Co
Slide 8: R&D Modeling
R&D MODELING 9 Review of R&D expenses in the Quarterly and Annual filings, located in the Management’s Discussion and Analysis section, provides expense details for late-stage programs, as well as earlier candidates in development as a whole R&D FORECASTING * Certain prior year amounts have been rec
Slide 9: Other Revenue
Other Revenue 10 Regeneron’s Quarterly and Annual filings include a table, located in the Management’s Discussion and Analysis section, that summarizes “Other Revenue” OTHER REVENUE COMPONENTS 3Q17 10-Q
Slide 10: Other Revenue: Teva collaboration & Other
Other Revenue: TEVA collaboration & Other 11 Under the terms of the agreement, Regeneron and Teva split ongoing R&D costs 50/50, up to ~$1.0Bn Regeneron is entitled to receive up to $460MM in development milestones, of which $25MM was recorded in 2Q17 and $35MM in 4Q17 TEVA COLLABORATION REVENUE 3Q1
Slide 11: 2018 Financial Guidance
2018 FINANCIAL GUIDANCE1 12 $1,230MM - $1,330MM Non-GAAP Unreimbursed R&D: $1,350MM - $1,450MM Non-GAAP SG&A: $450MM - $500MM Sanofi Collaboration Revenue; Reimbursement of Regeneron Commercialization-Related Expenses: 15% - 19% Effective Tax Rate: $420MM - $500MM Capital Expenditures: As of January
Slide 12: 2018 Financial Guidance (continued)
2018 FINANCIAL GUIDANCE’ Sanofi Collaboration Revenue; Reimbursement of Regeneron Commercialization-Related Expenses: $450MM - $500MM Effective Tax Rate: 15% - 19% Capital Expenditures: $420MM - $500MM 1) ASof January 8, 2018. The guidance does net assume the completion of any significant business d
Slide 13: Q&A
Q&A REGENERON
Slide 14: Cemiplimab commercialization-related accounting
Cemiplimab commercialization-Related accounting 15 U.S. Cemiplimab Ex-U.S. Cemiplimab1 Revenue – Net Product Sales U.S. sales of cemiplimab will be recorded in the Net Product Sales line on Regeneron’s Income Statement Revenue – Collaboration Revenue Regeneron will record its share of profits or los
Slide 15: Cemiplimab commercialization-related accounting
CEMIPLIMAB COMMERCIALIZATION-RELATED ACCOUNTING U.S. Cemiplimab REECE TEI U.S. sales of comipimab wil be recorded in the Net Product Sales AREER line on Regeneron's Income Statement Revenue — Collaboration Revenue US. COGS wilinclude both Regeneron product-elated COGS and the Regeneron payment of Sa
Regeneron Pharmaceuticals — Investor Presentation (January 2018) on 6ix