Regeneron Pharmaceuticals Inc Q4 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Brian Abrahams - RBC Capital Markets - Analyst : Hey, guys. Good morning. Thanks for taking my question. Consensus numbers suggest expectations for annual sales erosion of about 7% annually over the next few years for the EYLEA franchise. Just given what you've been seeing on the ground and some of the dynamics you described, including competitive pressure, but a potential acceleration in HD with some of those approvals, do you think that these expectations look reasonable? And I know you guys don't typically provide guidance, but I just -- I think any directionality might be helpful here. Just to understand whether folks are looking at dynamics here the right way or if expectations may be way off?

Question: Tyler Van Buren - TD Cowen - Analyst : Hey, guys. Good morning. Thank you very much for taking the question. So the dividend initiation is an exciting disclosure and earlier than some might have expected. So I'm curious why you guys decided to institute the dividend now as opposed to when the Sanofi development balance was paid off by the end of next year and whether you plan to increase it from these levels over time.

Question: Cory Kasimov - Evercore ISI - Analyst : Hey, good morning, guys. I wanted to ask on the adjuvant CSCC Libtayo readout that you top lined in January. How critical is it that the product also hits an overall survival in addition to the DFS top line? And can you kind of comment as to how you see this as the opportunity here from a commercial perspective relative to the indications you already have?

Question: Salveen Richter - Goldman Sachs - Analyst : Good morning. Thanks for taking my question. Could you just speak to the magnitude of inventory impact on EYLEA HD that played out last quarter and also the dynamics that are happening in the marketplace with [PAV-FLU], the biosimilar?

Question: Taylor Hanley - JP Morgan - Analyst : This is Taylor Hanley on for Chris Schott. I just had a question on how you're thinking about operating expenses going forward. So with numerous programs advancing to late-stage development. How are you thinking about balancing investments across the pipeline? And do you think that there would be the potential to partner any of these programs? Or should we think about Regeneron and keeping everything in-house going forward? Leonard Schleifer - Regeneron Pharmaceuticals Inc - Co-Chairman of the Board, President, Chief Executive Officer, Founder So I think it's important to note that our primary allocation of our capital is to our research and development efforts. We're in the midst of doing a little interesting exercise that if you compare our investment to other companies and you take into account equity investments and other upfronts and milestones that essentially buying research and development, I think the data is going to show that we have an incredibly productive dollar to dollar pound for pound R&D capabilities in the industry. In terms of whether or not we would partner, I think we have always been -- that is a financial partner, perhaps or a strategic partner in some program. We've always kept an open mind to see what is the best for the program and how can we best allocate our resources. So we don't manage REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 04, 2025 / 1:30PM, REGN.OQ - Q4 2024 Regeneron Pharmaceuticals Inc Earnings Call the business in any fixed allocation way. We don't say we're going to spend X percent. We look at what's worth spending our money on. We look at what the potential ways to fund our programs are and we try and make decisions that way rather than having some allocation quotas or the like. That flexibility, I think, has served us well, and it will continue to serve well given that we have more than 40 programs in the clinic and many, many more heading towards the clinic.

Question: Mohit Bansal - Wells Fargo - Analyst : Great. Thank you very much for taking my question. Maybe, I just wanted to get a little bit more color on how you are thinking about the cadence of EYLEA HD of the year -- for the year because it seems like you're saying that you expect incremental conversion and pre-fill syringe and label expansion comes in. Could you help us understand? I mean, is it like -- is it going to be more incremental? Or do you think that there's an infection partially due to prefiling given the market acceptability of that of that combination? Thank you.

Question: Alice Nettleton - Bank of America - Analyst : This is Alice Nettleton on for Tim Anderson. Sorry, another one on EYLEA. Leonard Schleifer - Regeneron Pharmaceuticals Inc - Co-Chairman of the Board, President, Chief Executive Officer, Founder Why don't we come back to that question at the end, so we can get some non-EYLEA questions in. We'll put you at the end of the queue and we'll come back to you.

Question: Akash Tawari - Jeffries - Analyst : I'm not going to ask an idea question. George, I'd love your take on Factor XI. We've seen both Andexxa and some of the private map players show issues in preventing ischemic stroke events with the map also showing an inverse dose response on bleed prevention. That said, Regeneron is the only company that's shown an incremental benefit in a total knee replacement study versus (inaudible). So can you talk about your confidence on 5708 and some of the recent data sets in the space?

Question: William Pickering - Bernstein - Analyst : Hi, thank you for taking my question. It's about your complement programs. So it seems like your antibody siRNA combo has potential to deliver really leading efficacy. But on safety, you've seen some great AE so far -- discuss how you see these combos fitting into the MG and GA treatment landscapes. And for GA specifically, anything about the design of the Phase 3 trial that would kind of minimize some of those safety events that you've seen so far?

Question: David Risinger - Leerink Partners - Analyst : Yes, thanks very much. So my question is on obesity. George, could you please discuss the need to combine myostatin with an active in blocker to treat obesity and optimized body composition. I ask because I'm curious about whether if the Activin doesn't have the right benefit risk profile, whether you could develop a myostatin as a stand-alone or not? Thanks very much.

Question: Alice Nettleton - Bank of America - Analyst : This is Alice on for Tim. So back to my question on EYLEA. We talked to one big purchaser of EYLEA recently, who said that Regeneron essentially hasn't sweetened the contract terms on standard dose in an effort to compete with Amgen's product yet. So can we infer from this that you are likely to hold the ground on price and pricing concessions with the goal being that doctors will start using high dose more once the label and product enhancements come through.