In the fourth-quarter ended December 2014, Regeneron Pharmaceuticals [NASDAQ:REGN] reported total revenues of $802 million, up 31% year-over-year and non-GAAP (adjusted) EPS of $2.79, up 27% year-over-year. Wall Street was expecting earnings of $2.81 per share on revenue of $783 million. 

The company reported Eylea sales in the United States of $518 million, up 29% year-on-year. For the full year of 2014, net sales of Eylea in the United States increased 23% to $1.736 billion from $1.409 billion for the full year of 2013. In 2015, the company expects U.S. Eylea sales to grow 25–30% year over year.

Regeneron and Bayer AG (ADR) [OTCMKTS:BAYRY] commercializes Eylea outside the United States, except for Japan, where Regeneron receives a royalty on net sales. In the fourth quarter of 2014, net sales of Eylea outside of the United States were $297 million, up 61% from $184 million in the fourth quarter of 2013. In the fourth quarter of 2014, Regeneron recognized $88 million from its share of net profits from Eylea sales outside the United States, up 100% from $44 million in the fourth quarter of 2013. 

For the full year of 2014, net sales of Eylea outside of the United States were $1.039 billion, up 120% from $472 million in 2013. For the full year of 2014, Regeneron recognized $301 million from its share of net profits from Eylea sales outside the United States, up 195% from $102 million in 2013.

Regeneron is co-developing with Sanofi [NYSE:SNY], Praluent (alirocumab), a monoclonal antibody targeting proprotein convertase subtilisin/kexin type 9 (PCSK9) to lower low-density lipoprotein cholesterol (LDL-C). In January 2015, the FDA accepted the biologics license application (BLA) for Praluent for priority review, with a target action date of July 24, 2015. 

In addition, the European Medicines Agency (EMA) recently accepted the Marketing Authorization Application (MAA) for Praluent for review.

Praluent will be competing with evolocumab (AMG 145), another PCSK9 inhibitor drug developed by Amgen [NASDAQ:AMGN]. The FDA accepted Amgen's BLA for evolocumab in November 2014. In January, Pfizer [NYSE:PFE] said they are also developing a PCSK9 inhibitor oral pill and vaccine, bococizumab [RN 316], which now is in Phase III.

It needs to be pointed out that REGN is traded along with the Nasdaq Biotechnology Index [NASDAQ:IBB] and may be counter traded with the Market Vectors Semiconductor ETF [NYSEARCA:SMH]. According to Forbes, REGN is heavily shorted as the “days to cover” during the month ending January 30 was 6.59, compared to an average of 3.42 days for all Nasdaq 100 components.

From our technical analysis, REGN ran into a false breakout in December 2014. The stock may be trading in the range between $396 and $440 in the next three months before making an up-side breakout. 

Morgan Stanley set its target price for REGN last week at $499.00 while Argus’s price target for REGN was raised today from $430.00 to $450.00.

Disclosure: Long Position REGN in Portfolio