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Regeneron raises 2013 Eylea sales view, profit beats Street
(Reuters) - Regeneron Pharmaceuticals Inc's (REGN.O) first-quarter results beat analysts' estimates for the seventh straight quarter as sales of its eye drug Eylea continued to gather pace, and the company raised its 2013 sales estimate for the drug.
Shares of the company were up about 4 percent in light trading before markets opened on Friday.
Eylea, which treats age-related macular degeneration -- the most common cause of blindness in the elderly -- is stealing market share from Roche Holding AG's (ROG.VX) Lucentis treatment.
Regeneron's stock had fallen a little immediately after the company reported fourth-quarter earnings in February as it did not raise its forecast for Eylea. It had consistently raised its sales projections for the drug in the previous few quarters.
At the time, some analysts speculated that Eylea was already well penetrated, and that the company was unlikely to raise its forecast for the drug going forward.
However, the shares have risen nearly 47 percent since February, tracking rising investor confidence in Eylea's prospects.
Regeneron's stock got a further boost on Wednesday when Botox maker Allergan Inc (AGN.N) said its drug Darpin, a potential competitor, could be delayed by upto two years.
Regeneron Chief Executive Leonard Schleifer said in a recent interview that sales of Eylea could jump sharply if potential rivals stumble.
The drugmaker is also conducting late stage trials for Eylea for two other indications.
The company expects Eylea to generate sales of $1.25 billion to $1.33 billion in 2013, compared to its previous estimate of $1.2 billion to $1.3 billion.
Sales of the drug, which was approved by U.S. regulators in November 2011, rose 153 percent in the first quarter to $314 million.
The company had boosted its 2012 sales expectations for the drug four times last year.
Excluding one-time items, Regeneron earned $1.78 per share, well above analysts' average estimate of 98 cents per share.
Total revenue rose 90 percent to $440 million, also ahead of the average analyst estimate of $428.3 million, according to Thomson Reuters I/B/E/S.
Separately, the company said it bought full rights to two families of antibodies that are in preclinical development for use in ophthalmology for $10 million each. The antibodies were part of its collaboration with Sanofi (SASY.PA).
"Gaining rights to these antibodies basically gives them the right, free and clear, to develop these drugs for ophthalmology and keep most of the economics in house," RBC Capital Markets analyst Adnan Butt said.
Regeneron's net profit rose to $99 million, or 90 cents per share, from $12 million, or 11 cents per share, a year earlier.
(Reporting By Vrinda Manocha and Zeba Siddiqui in Bangalore; Editing by Sreejiraj Eluvangal)
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