Regeneron posts better-than-expected Q2 results, downplays tariff impact

Regeneron REGN topped Wall Street estimates for second-quarter results on Friday, on robust demand for its blockbuster eczema drug Dupixent, and said it does not expect a material impact from tariffs on imports from the European Union.

Under the U.S.-EU trade deal announced earlier this week, all branded medicines will be subject to a 15% broad tariff .

As the company gains clarity on details of the agreement and other potential tariffs, CEO Leonard Schleifer said the 15% duties were not expected to have a material impact.

Investors have set a high bar for Regeneron and French partner Sanofi's SAN Dupixent, one of the U.S. drugmaker's growth drivers.

Sales of the anti-inflammatory drug came in at $4.34 billion, beating analysts' estimate of $4.14 billion, according to data compiled by LSEG.

U.S. sales of its eye-disease drug Eylea, jointly developed with Bayer AG BAYN, fell 25% to $1.15 billion, missing an estimate of $2.17 billion. The higher, 8-milligram dose of the drug brought in sales of $393 million.

Shares of the drugmaker initially rose 5% but pared most gains after Regeneron said the U.S. Food and Drug Administration had declined to approve its blood cancer therapy, citing process-related issues at a fill-finish site in Bloomington, Indiana.

The site, which is also used to manufacture high-dose Eylea, has caused a delay for three regulatory filings of the drug. Novo Nordisk NOVO_B, which acquired the site from Catalent, is in touch with the regulator about these problems.

Regeneron earned adjusted quarterly profit of $12.89 per share, compared with analysts' average expectation of $8.44 per share. Its total second-quarter revenue was $3.68 billion, above an expectation of $3.28 billion.

The company is also among 17 drugmakers that have received a letter from President Donald Trump asking them to slash prescription drug prices in the United States to match overseas rates.