Regeneron Pharmaceuticals Earnings Call Insights: Impact of Compounding Pharmacies and CRVO

Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) recently reported its fourth quarter earnings and discussed the following topics in its earnings conference call.

Impact of Compounding Pharmacies

Robyn Karnauskas – Deutsche Bank: So I guess, a question around market trends, you mentioned that Avastin now is about 41%, EYLEA 22%, I think you saw Lucentis 37% and the previous data said these are up, there was EYLEA 20%, Avastin 50% and Lucentis 30%, so I’m trying to understand has there been a shift according to your market research of Avastin to Lucentis, and have you seen any impact from compounding pharmacies in the New Year?

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Leonard S. Schleifer, MD, Ph.D – President and CEO: I can let Bob comment on that Robyn. Thanks for the question, but before he does just to really emphasize the point, these are qualitative research and it’s – they are not really intended to be able to track precisely market share from survey over time. And Bob, you want to elaborate on that?

Robert J. Terifay – SVP, Commercial: I agree Len, the way we do the survey is we try to pick a representative sample of 200 retinal specialists, but we do vary it, as we go out over time. So, it’s very hard to trend specific numbers. What I can tell you is that, it does seem that Avastin sales are slowly declining with the launch of EYLEA. I don’t think you can read that Lucentis is growing from Avastin sales. I think it was just the distribution of physicians that we had in this survey. In terms of the compounding question, we do see physicians are concerned. There are some states now where the physicians are having to write prescriptions or spreadsheets with all the patients for whom compounded Avastin is being used, but there has been no major market shift as of yet.

Michael Aberman, M.D. – VP, Strategy and IR: It’s Michael. I just want to make sure. I think you mentioned some of those numbers wrong, so I just want to clarify what our survey results were. It was 47% for bevacizumab and 30% ranibizumab and 22% for EYLEA.