3Q report tid-bits:
-Regn's losses in connection with Sanofi's collaboration/commercialization of antibodies was $39M, so if there is uptick in Dupi # from asthma indication and REGN2810 generate ~$30-40M, this commercialization may be profitable in 4Q!
-This year Eylea ex-US (Bayer) profit will reach +$1B (gross sale $2.2B) or 45% of sale,...which is very good. In US Eylea profit is +90%, it is +$3.6B. So, Eylea net profit is $4.6 B for 2018.
-This year REGN will report net income (EPS) of ~$2.61B (before taxes), means that ~$2B from Eylea franchise is spending (wasting) on R&D and Sanofi collaboration.
-IF Non-GAAP unreimbursed R&D are ~$1.2B, REGN is wasting ~$0.8B/y on Sanofi. So far REGN did not much profit (in net income) from Sanofi collaborations, and IF (assuming) in last 10 years did waste ~$0.4B/y, it is ~$4B! To recover this investment, they will need to generate profit of at least $0.6-0.8B/Y for next 15-20 years.....REALITY is that Sanofi PROFITED from REGN stock ownership much more than it invested in Abs collaborations,.... or what REGN will recover from Abs commercialization.
While, REGN did benefited from Sanofi cash infusions during "dry years", can the business inside Sanofi collaborations generate net investor return? Dupi alone may not recover ~$4B in investment and ~$8B in profit (2X return on investment in 20 years is way to generous to Sanofi), so it is up to IO to prove that collaboration was/is profitable at end.
Point is, they better be right which IO/IO- or IO/X-combinations and targets they chose to turn oncology franchise in right directions.
Cheers!
PS: All this math and numbers (they may be significantly off) is just to show how important is to be *rational* in any partnership. |
