Eylea franchise grows 2% in Q2 with high-dose form gaining traction

Regeneron Pharmaceuticals recently reported its second-quarter earnings, showcasing the growing market presence of Eylea HD, the high-dose version of its flagship retinal disease treatment. Despite competition from Roche's bispecific antibody Vabysmo, Eylea HD has made significant strides in the market. The company's US net sales for the Eylea franchise climbed by 2% to reach $1.5 billion compared to the same period last year, with Eylea HD contributing $304 million to the total. However, this figure fell short of some projections, which had anticipated $320 million.

CEO Leonard Schleifer emphasized during the earnings call that the strong launch trajectory of Eylea HD, despite increasing competition in the anti-VEGF space, is a positive indicator. He noted that the combined market share for Eylea HD and the original Eylea formulation remains robust at 45%. This suggests that Eylea HD is successfully maintaining its market position while transitioning patients to a longer-acting treatment requiring fewer injections.

The original Eylea formulation saw a decline in US sales by 18% to $1.2 billion. Nevertheless, the successful adoption of Eylea HD appears to be mitigating this downturn. Analyst Brian Abrahams from RBC Capital Markets indicated that the market's shift towards Eylea HD has been strong, aligning with expectations that the industry will gradually move towards longer-acting treatments.

Schleifer also highlighted the company's ongoing efforts to introduce an Eylea HD pre-filled syringe in the US, which he described as a high priority. The company aims to launch this new product format by early 2025, which could further bolster Eylea HD's market position.

Regeneron's overall performance for the quarter exceeded expectations, with total sales rising by 12% to $3.55 billion, surpassing the forecasted $3.38 billion. A significant contributor to this growth was the company's collaboration with Sanofi on Dupixent. Dupixent sales, recorded by Sanofi, reached $3.56 billion, which led to a 21% increase in collaboration revenue for Regeneron, totaling $1.15 billion.

In addition to its financial results, Regeneron provided an update on its pipeline. The company disclosed a potential challenge concerning linvoseltamab, a BCMAxCD3 bispecific currently under priority review by the FDA for treating fourth-line patients with relapsed or refractory multiple myeloma. This update indicates a possible setback in the approval process, though further details were not provided.

In summary, Regeneron Pharmaceuticals continues to demonstrate strong market performance with its Eylea HD treatment, despite facing competition. The company's strategic initiatives, such as the introduction of a pre-filled syringe for Eylea HD, aim to sustain its market leadership. Additionally, the robust sales of Dupixent through its partnership with Sanofi significantly contributed to the company's overall growth this quarter. However, the potential delay in the approval of linvoseltamab highlights the challenges and uncertainties inherent in pharmaceutical development.