Pharmaceutical developer Regeneron had a great 2021, but the company’s chief financial officer has warned investors not to expect the company to make any sales on their REGEN-COV antibody cocktail in the first half of 2022.
Regeneron’s revenues for 2021 were up 89%, with the company generating $16.07 billion compared to $4.95 billion for the previous year. The company attributed most of its spike in revenue to REGEN-COV, its coronavirus antibody cocktail, according to Albany Times-Union.
Now, Robert Landry, CFO at Regeneron, is warning investors to temper their expectations. The Federal Food and Drug Administration (FDA) retracted REGEN-COV’s use in the U.S this January due to data showing it is “highly unlikely to be active against the omicron variant,” the strain behind the recent spike in COVID-19 cases.
With REGEN-COV’s use on pause, scientists at Regeneron are working to formulate “next generation antibodies” to fight against new COVID-19 variants.
The company had to absorb a $232 million charge to “write down” its REGEN-COV inventory. Regeneron is forecasting spending on research and development to be between $3.1 and $3.4 billion this year, with a 89% gross margin on net product sales as well.
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