Regeneron Pharmaceuticals Expects Q4 2023 To Include An Acquired In-Process R&D Charge Of $30M Related To Extend Its Collaboration With Intellia Therapeutics, Which Is Expected To Negatively Impact GAAP And Non-GAAP EPS For Q4 FY23 By ~$0.21
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Regeneron Pharmaceuticals anticipates a $30M acquired in-process R&D charge in Q4 2023 due to the extension of its collaboration with Intellia Therapeutics. This charge is expected to negatively affect both GAAP and Non-GAAP EPS for Q4 FY23 by approximately $0.21.
January 08, 2024 | 11:41 am
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NEGATIVE IMPACT
Regeneron Pharmaceuticals will incur a $30M R&D charge in Q4 2023 due to its extended collaboration with Intellia Therapeutics, reducing EPS by about $0.21.
The $30M charge is a significant expense that will directly reduce Regeneron's earnings per share for the quarter. This negative financial impact is likely to be viewed unfavorably by investors, potentially leading to a short-term decline in the stock price.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 90
POSITIVE IMPACT
Intellia Therapeutics' extended collaboration with Regeneron Pharmaceuticals includes a $30M R&D charge to Regeneron, which may reflect positively on Intellia's strategic value.
While the R&D charge is a cost to Regeneron, it indicates ongoing investment in Intellia's technology and could be seen as a validation of Intellia's research capabilities. This may have a positive impact on Intellia's stock as it suggests confidence in the company's potential.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70