2011 Q4 Form 10-K Financial Statement

#000153217613000004 Filed on February 15, 2013

View on sec.gov

Income Statement

Concept 2011 Q4 2011 Q3 2011 Q2
Revenue $123.0M $102.8M $107.8M
YoY Change -8.02% -2.99% -6.98%
Cost Of Revenue $3.000M $450.0K $400.0K
YoY Change 400.0% 12.5% 0.0%
Gross Profit $120.0M $102.4M $107.4M
YoY Change -9.84% -3.05% -7.01%
Gross Profit Margin 97.58% 99.56% 99.62%
Selling, General & Admin $36.30M $32.92M $24.60M
YoY Change 76.21% 109.66% 67.35%
% of Gross Profit 30.25% 32.15% 22.91%
Research & Development $129.0M $127.9M $143.1M
YoY Change 3.04% 4.86% 14.94%
% of Gross Profit 107.5% 124.95% 133.24%
Depreciation & Amortization $7.900M $8.300M $7.900M
YoY Change 29.51% 69.39% 75.56%
% of Gross Profit 6.58% 8.11% 7.36%
Operating Expenses $165.4M $160.8M $167.7M
YoY Change 13.37% 16.8% 20.47%
Operating Profit -$45.40M -$58.46M -$60.30M
YoY Change 254.69% 82.11% 154.43%
Interest Expense -$9.500M $4.061M -$4.000M
YoY Change 280.0% -284.59% 73.91%
% of Operating Profit
Other Income/Expense, Net $800.0K -$3.346M $1.000M
YoY Change 33.33% -769.2% 66.67%
Pretax Income -$54.10M -$61.80M -$63.40M
YoY Change 270.55% 82.31% 148.63%
Income Tax -$600.0K $562.0K -$900.0K
% Of Pretax Income
Net Earnings -$53.44M -$62.37M -$62.51M
YoY Change 266.05% 83.97% 145.12%
Net Earnings / Revenue -43.46% -60.65% -57.98%
Basic Earnings Per Share -$0.68
Diluted Earnings Per Share -$581.7K -$0.68 -$691.4K
COMMON SHARES
Basic Shares Outstanding 91.05M shares
Diluted Shares Outstanding 91.05M shares

Balance Sheet

Concept 2011 Q4 2011 Q3 2011 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $527.0M $245.0M $310.0M
YoY Change 111.65% -48.85% 1.31%
Cash & Equivalents $483.6M $206.4M $254.0M
Short-Term Investments $43.00M $39.00M $55.00M
Other Short-Term Assets $36.00M $16.00M $19.00M
YoY Change 38.46% 14.29% 18.75%
Inventory $16.61M
Prepaid Expenses
Receivables $28.25M $75.00M $82.00M
Other Receivables $0.00 $3.000M $3.000M
Total Short-Term Assets $665.8M $340.0M $413.0M
YoY Change 85.97% -40.97% -1.2%
LONG-TERM ASSETS
Property, Plant & Equipment $368.0M $364.0M $362.0M
YoY Change 5.9% 14.47% 23.97%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $276.0M $258.0M $251.0M
YoY Change -25.41% 578.95% 258.57%
Other Assets $6.243M $21.00M $20.00M
YoY Change -55.41% 110.0% 100.0%
Total Long-Term Assets $657.8M $643.0M $634.0M
YoY Change -10.01% 75.68% 69.97%
TOTAL ASSETS
Total Short-Term Assets $665.8M $340.0M $413.0M
Total Long-Term Assets $657.8M $643.0M $634.0M
Total Assets $1.324B $983.0M $1.047B
YoY Change 21.54% 4.35% 32.36%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $28.00M $21.00M $27.00M
YoY Change 55.56% -8.7% 68.75%
Accrued Expenses $68.00M $58.00M $55.00M
YoY Change 88.89% 11.54% 27.91%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $148.3M $133.0M $136.0M
YoY Change 36.03% -0.75% 13.33%
LONG-TERM LIABILITIES
Long-Term Debt $435.0M $159.0M $159.0M
YoY Change 173.58% 0.63% 1.27%
Other Long-Term Liabilities $6.443M $262.0M $274.0M
YoY Change -97.8% -13.25% 92.96%
Total Long-Term Liabilities $6.443M $421.0M $433.0M
YoY Change -98.57% -8.48% 44.82%
TOTAL LIABILITIES
Total Short-Term Liabilities $148.3M $133.0M $136.0M
Total Long-Term Liabilities $6.443M $421.0M $433.0M
Total Liabilities $837.9M $555.0M $569.0M
YoY Change 49.08% -6.57% 35.8%
SHAREHOLDERS EQUITY
Retained Earnings -$1.267B
YoY Change
Common Stock $91.00K
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $485.7M $428.3M $478.0M
YoY Change
Total Liabilities & Shareholders Equity $1.324B $983.0M $1.047B
YoY Change 21.54% 4.35% 32.36%

Cashflow Statement

Concept 2011 Q4 2011 Q3 2011 Q2
OPERATING ACTIVITIES
Net Income -$53.44M -$62.37M -$62.51M
YoY Change 266.05% 83.97% 145.12%
Depreciation, Depletion And Amortization $7.900M $8.300M $7.900M
YoY Change 29.51% 69.39% 75.56%
Cash From Operating Activities -$50.30M -$46.80M -$34.00M
YoY Change 22.98% -128.98% 198.25%
INVESTING ACTIVITIES
Capital Expenditures -$11.30M -$8.900M -$14.80M
YoY Change -65.02% -59.73% -34.51%
Acquisitions
YoY Change
Other Investing Activities -$22.60M $8.000M $157.8M
YoY Change -92.99% -88.93% 509.27%
Cash From Investing Activities -$33.90M -$900.0K $143.0M
YoY Change -90.44% -101.79% 4105.88%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 361.4M -300.0K 10.10M
YoY Change 97.7% -118.75% 274.07%
NET CHANGE
Cash From Operating Activities -50.30M -46.80M -34.00M
Cash From Investing Activities -33.90M -900.0K 143.0M
Cash From Financing Activities 361.4M -300.0K 10.10M
Net Change In Cash 277.2M -48.00M 119.1M
YoY Change -230.32% -122.5% -2347.17%
FREE CASH FLOW
Cash From Operating Activities -$50.30M -$46.80M -$34.00M
Capital Expenditures -$11.30M -$8.900M -$14.80M
Free Cash Flow -$39.00M -$37.90M -$19.20M
YoY Change 353.49% -120.64% -271.43%

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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Concentration of Credit Risk</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Financial instruments which potentially subject the Company to concentrations of credit risk consist of cash, cash equivalents, marketable securities (see Note 6), and accounts receivable. Accounts receivable from product sales of EYLEA and ARCALYST are due from three distributors and several specialty pharmacies, who are the Company's customers. The Company has contractual payment terms with each of its customers, and the Company monitors its customers' financial performance and credit worthiness so that it can properly assess and respond to any changes in their credit profile. In addition, the Company may insure a portion of its accounts receivables within its overall risk management practices. During 2012, 2011, and 2010, the Company did not recognize any charges for write-offs of accounts receivable related to its marketed products. </font></div></div>
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-1.390
CY2012 us-gaap Effective Income Tax Rate Reconciliation Change In Enacted Tax Rate
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0.054
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CY2010 us-gaap Excess Tax Benefit From Share Based Compensation Financing Activities
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CY2012 us-gaap Impairment Of Long Lived Assets Held For Use
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CY2012Q3 us-gaap Revenue Recognition Milestone Method Revenue Recognized
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CY2010 us-gaap Impairment Of Long Lived Assets Held For Use
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CY2011 us-gaap Impairment Of Long Lived Assets Held For Use
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shares
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CY2012 us-gaap Nature Of Operations
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Organization and Business</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Regeneron Pharmaceuticals, Inc. and its subsidiaries (collectively, the &#8220;Company&#8221; or &#8220;Regeneron&#8221;) is a fully integrated biopharmaceutical company that discovers, invents, develops, manufactures, and commercializes medicines for the treatment of serious medical conditions. The Company currently has three marketed products as follows:</font></div><div style="line-height:120%;text-align:justify;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">EYLEA</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;"> (aflibercept) Injection, known in the scientific literature as VEGF Trap-Eye, which is available in the United States for the treatment of neovascular age-related macular degeneration ("wet AMD") and macular edema following central retinal vein occlusion ("CRVO"), and in the United Kingdom, Germany, Switzerland, Australia, Japan, and certain other countries, for the treatment of wet AMD. The Company commenced sales of EYLEA for the treatment of wet AMD in November 2011 and for the treatment of macular edema following CRVO in September 2012, following receipt of regulatory approvals in the United States. Bayer HealthCare LLC commenced sales of EYLEA for the treatment of wet AMD in the fourth quarter of 2012 following receipt of regulatory approvals in the European Union ("EU") and other regions. Regeneron is collaborating with Bayer HealthCare on the global development and commercialization of EYLEA outside the United States. Regeneron maintains exclusive rights to EYLEA in the United States and is entitled to all profits from any such sales. </font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">ZALTRAP</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;"> (ziv-aflibercept) Injection for Intravenous Infusion, known in the scientific literature as VEGF Trap, which is available in the United States for treatment, in combination with 5-fluorouracil, leucovorin, irinotecan ("FOLFIRI"), for patients with metastatic colorectal cancer ("mCRC") that is resistant to or has progressed following an oxaliplatin-containing regimen. Marketing approval for ZALTRAP was received from the U.S. Food and Drug Administration ("FDA") in August 2012. Regeneron and Sanofi globally collaborate on the development and commercialization of ZALTRAP.</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">ARCALYST</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;"> (rilonacept) Injection for Subcutaneous Use, which is available in the United States for the treatment of Cryopyrin-Associated Periodic Syndromes ("CAPS"), including Familial Cold Auto-inflammatory Syndrome ("FCAS") and Muckle-Wells Syndrome ("MWS"), in adults and children 12 and older. Marketing approval for ARCALYST for the treatment of CAPS was received from the FDA in 2008.</font></div></td></tr></table><div style="line-height:120%;text-align:justify;padding-left:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company's facilities are primarily located in New York. The Company's business is subject to certain risks including, but not limited to, uncertainties relating to conducting pharmaceutical research, obtaining regulatory approvals, commercializing products, and obtaining and enforcing patents.</font></div></div>
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CY2010 us-gaap Net Income Loss
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CY2011 us-gaap Net Income Loss Available To Common Stockholders Diluted
NetIncomeLossAvailableToCommonStockholdersDiluted
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CY2011 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
-17733000 USD
CY2012 us-gaap Nonoperating Income Expense
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-43292000 USD
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OperatingLeasesRentExpenseNet
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696000 USD
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6443000 USD
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CY2012 us-gaap Other Noncash Income Expense
OtherNoncashIncomeExpense
-34049000 USD
CY2010 us-gaap Other Noncash Income Expense
OtherNoncashIncomeExpense
-4037000 USD
CY2012 us-gaap Payments For Hedge Financing Activities
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USD
CY2010 us-gaap Payments For Hedge Financing Activities
PaymentsForHedgeFinancingActivities
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CY2011 us-gaap Payments For Hedge Financing Activities
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117500000 USD
CY2011 us-gaap Payments Related To Tax Withholding For Share Based Compensation
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25078000 USD
CY2012 us-gaap Payments To Acquire Marketable Securities
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470393000 USD
CY2011 us-gaap Payments To Acquire Marketable Securities
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240391000 USD
CY2011 us-gaap Payments To Acquire Productive Assets
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57217000 USD
CY2010 us-gaap Payments To Acquire Productive Assets
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99689000 USD
CY2012 us-gaap Payments To Acquire Productive Assets
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49337000 USD
CY2011Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
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CY2012Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
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CY2012Q4 us-gaap Preferred Stock Shares Authorized
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CY2011Q4 us-gaap Preferred Stock Shares Authorized
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0 shares
CY2012Q4 us-gaap Preferred Stock Shares Issued
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0 shares
CY2012Q4 us-gaap Preferred Stock Shares Outstanding
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0 shares
CY2011Q4 us-gaap Preferred Stock Shares Outstanding
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0 shares
CY2011Q4 us-gaap Preferred Stock Value
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CY2012Q4 us-gaap Preferred Stock Value
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CY2011Q4 us-gaap Prepaid Expense And Other Assets Current
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35800000 USD
CY2012Q4 us-gaap Prepaid Expense And Other Assets Current
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56663000 USD
CY2012 us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Reclassifications</font></div><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Certain reclassifications have been made to prior period amounts to conform with the current period's presentation. </font></div></div>
CY2012 us-gaap Proceeds From Convertible Debt
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CY2010 us-gaap Proceeds From Convertible Debt
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CY2011 us-gaap Proceeds From Convertible Debt
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391107000 USD
CY2010 us-gaap Proceeds From Issuance Of Common Stock
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200588000 USD
CY2012 us-gaap Proceeds From Issuance Of Common Stock
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63549000 USD
CY2011 us-gaap Proceeds From Issuance Of Common Stock
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43587000 USD
CY2011 us-gaap Proceeds From Issuance Of Warrants
ProceedsFromIssuanceOfWarrants
93800000 USD
CY2010 us-gaap Proceeds From Issuance Of Warrants
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USD
CY2012 us-gaap Proceeds From Issuance Of Warrants
ProceedsFromIssuanceOfWarrants
USD
CY2011Q4 us-gaap Proceeds From Issuance Of Warrants
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93800000 USD
CY2011 us-gaap Proceeds From Long Term Capital Lease Obligations
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USD
CY2012 us-gaap Proceeds From Long Term Capital Lease Obligations
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USD
CY2010 us-gaap Proceeds From Long Term Capital Lease Obligations
ProceedsFromLongTermCapitalLeaseObligations
47544000 USD
CY2012 us-gaap Proceeds From Sale And Maturity Of Marketable Securities
ProceedsFromSaleAndMaturityOfMarketableSecurities
439209000 USD
CY2010 us-gaap Proceeds From Sale And Maturity Of Marketable Securities
ProceedsFromSaleAndMaturityOfMarketableSecurities
273723000 USD
CY2011 us-gaap Proceeds From Sale And Maturity Of Marketable Securities
ProceedsFromSaleAndMaturityOfMarketableSecurities
426356000 USD
CY2011Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
526094000 USD
CY2012Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
560453000 USD
CY2012Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
379940000 USD
CY2011Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
367955000 USD
CY2011Q4 us-gaap Receivable From Shareholders Or Affiliates For Issuance Of Capital Stock
ReceivableFromShareholdersOrAffiliatesForIssuanceOfCapitalStock
200000 USD
CY2010Q4 us-gaap Receivable From Shareholders Or Affiliates For Issuance Of Capital Stock
ReceivableFromShareholdersOrAffiliatesForIssuanceOfCapitalStock
200000 USD
CY2012Q4 us-gaap Receivable From Shareholders Or Affiliates For Issuance Of Capital Stock
ReceivableFromShareholdersOrAffiliatesForIssuanceOfCapitalStock
3800000 USD
CY2012 us-gaap Repayments Of Long Term Capital Lease Obligations
RepaymentsOfLongTermCapitalLeaseObligations
2203000 USD
CY2011 us-gaap Repayments Of Long Term Capital Lease Obligations
RepaymentsOfLongTermCapitalLeaseObligations
1667000 USD
CY2010 us-gaap Repayments Of Long Term Capital Lease Obligations
RepaymentsOfLongTermCapitalLeaseObligations
1028000 USD
CY2010 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
489252000 USD
CY2011 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
529506000 USD
CY2012 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
625554000 USD
CY2012Q4 us-gaap Restricted Cash And Investments Noncurrent
RestrictedCashAndInvestmentsNoncurrent
8186000 USD
CY2011Q4 us-gaap Restricted Cash And Investments Noncurrent
RestrictedCashAndInvestmentsNoncurrent
7721000 USD
CY2012Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-517054000 USD
CY2011Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-1267323000 USD
CY2012 us-gaap Revenue From Related Parties
RevenueFromRelatedParties
423814000 USD
CY2010 us-gaap Revenue From Related Parties
RevenueFromRelatedParties
311332000 USD
CY2011 us-gaap Revenue From Related Parties
RevenueFromRelatedParties
326609000 USD
CY2012 us-gaap Revenue Recognition Interest
RevenueRecognitionInterest
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Investment Income</font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Interest income, which is included in investment income, is recognized as earned.</font></div></div>
CY2012 us-gaap Revenue Recognition Long Term Contracts
RevenueRecognitionLongTermContracts
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Collaboration Revenue</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company earns collaboration revenue in connection with collaboration agreements to develop and commercialize product candidates and utilize the Company's technology platforms. The terms of these agreements typically include non-refundable up-front licensing payments, research progress (milestone) payments, payments for development activities, and sharing of profits or losses arising from the commercialization of products. Non-refundable up-front license payments, where continuing involvement is required of the Company, are deferred and recognized over the related performance period. The Company estimates its performance period based on the specific terms of each agreement, and adjusts the performance periods, if appropriate, based on the applicable facts and circumstances. Although the Company did not enter into, or materially modify, any collaboration arrangements with multiple-deliverables during the years ended December 31, 2011 and 2012, any future arrangements with multiple deliverables will be divided into separate units of accounting if the deliverables in the arrangement meet certain criteria, including whether the delivered item or items has value to the collaborator on a standalone basis.</font><font style="font-family:inherit;font-size:10pt;font-weight:bold;"> </font><font style="font-family:inherit;font-size:10pt;">Payments which are based on achieving a specific substantive performance milestone, involving a degree of risk, are recognized as revenue when the milestone is achieved and the related payment is due and non-refundable, provided there is no future service obligation associated with that milestone.&#160;Substantive performance milestones typically consist of significant achievements in the development life-cycle of the related product candidate, such as completion of clinical trials, filing for approval with regulatory agencies, and receipt of approvals by regulatory agencies. In determining whether a payment is deemed to be a substantive performance milestone, the Company takes into consideration (i) the enhancement in value to the related development product candidate, (ii) the Company's performance and relative level of effort required to achieve the milestone, (iii) whether the milestone relates solely to past performance, and (iv) whether the milestone payment is considered reasonable relative to all of the deliverables and payment terms.&#160;Payments for achieving milestones which are not considered substantive are deferred and recognized over the related performance period. </font></div><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company enters into collaboration agreements that include varying arrangements regarding which parties perform and bear the costs of research and development activities. The Company may</font><font style="font-family:inherit;font-size:10pt;font-weight:bold;"> </font><font style="font-family:inherit;font-size:10pt;">share the costs of research and development activities with a collaborator, such as in the Company's EYLEA collaboration with Bayer HealthCare, or the Company may be reimbursed for all or a significant portion of the costs of the Company's research and development activities, such as in the Company's ZALTRAP and antibody collaborations with Sanofi. The Company records its internal and third-party development costs associated with these collaborations as research and development expenses. When the Company is entitled to reimbursement of all or a portion of the research and development expenses that it incurs under a collaboration, the Company records those reimbursable amounts as collaboration revenue proportionately as the Company recognizes its expenses. If the collaboration is a cost-sharing arrangement in which both the Company and its collaborator perform development work and share costs, in periods when the Company's collaborator incurs development expenses that benefit the collaboration and Regeneron, the Company also recognizes, as additional research and development expense, the portion of the collaborator's development expenses that the Company is obligated to reimburse. </font></div><div style="line-height:120%;text-align:justify;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company may also be obligated to use commercially reasonable efforts to supply commercial product to its collaborators. In such cases, the Company is reimbursed for its manufacturing costs as commercial product is shipped to its collaborators; however, recognition of such cost reimbursements as collaboration revenue is deferred until the product is sold by the Company's collaborators to third-party customers, at which time the Company's risk of inventory loss no longer exists. In addition, at that time, the related manufacturing costs for the sold product, which had been capitalized into inventory, are recognized by the Company.</font></div><div style="line-height:120%;text-align:justify;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Under the Company's collaboration agreements, product sales and cost of sales are recorded by the Company's collaborators. The Company shares in any profits or losses arising from the commercialization of collaboration products. The Company records its share of the profits or losses, representing net product sales less cost of goods sold and shared commercialization and other expenses, from commercialization of such products as collaboration revenue. </font></div><div style="line-height:120%;text-align:justify;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In connection with non-refundable licensing payments, the Company's performance period estimates are principally based on projections of the scope, progress, and results of its research and development activities. Due to the variability in the scope of activities and length of time necessary to develop a drug product, changes to development plans as programs progress, and uncertainty in the ultimate requirements to obtain governmental approval for commercialization, revisions to performance period estimates are likely to occur periodically, and could result in material changes to the amount of revenue recognized each year in the future. In addition, estimated performance periods may change if development programs encounter delays, or the Company and its collaborators decide to expand or contract the clinical plans for a drug candidate in various disease indications. Also, if a collaborator terminates an agreement in accordance with the terms of the agreement, the Company would recognize as revenue any unamortized remainder of an up-front or previously deferred payment at the time of the termination. </font></div><div style="line-height:120%;text-align:justify;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></div>
CY2012Q4 us-gaap Revenue Recognition Milestone Method Revenue Recognized
RevenueRecognitionMilestoneMethodRevenueRecognized
10000000 USD
CY2012 us-gaap Revenue Recognition Sales Of Goods
RevenueRecognitionSalesOfGoods
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Product Revenue</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Product sales consist of U.S. sales of EYLEA and ARCALYST. Revenue from product sales is recognized when persuasive evidence of an arrangement exists, title to product and associated risk of loss have passed to the customer, the price is fixed or determinable, collection from the customer is reasonably assured, the Company has no further performance obligations, and returns can be reasonably estimated. The Company's written contracts with its customers stipulate product is shipped freight on board destination (FOB destination). The Company records revenue from product sales upon delivery to its customers. </font></div><div style="line-height:120%;text-align:justify;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company sells EYLEA</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt"> </sup></font><font style="font-family:inherit;font-size:10pt;">in the United States to three distributors and several specialty pharmacies. The Company sells ARCALYST in the United States to two specialty pharmacies. Under these distribution models, the distributors and specialty pharmacies generally take physical delivery of product. For EYLEA, the distributors and specialty pharmacies generally sell the product directly to healthcare providers, whereas for ARCALYST, the specialty pharmacies sell the product directly to patients. </font></div><div style="line-height:120%;text-align:justify;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Revenue from product sales is recorded net of applicable provisions for rebates and chargebacks under governmental programs (including Medicaid), distribution-related fees, prompt pay discounts, product returns, and other sales-related deductions. Calculating these provisions involves estimates and judgments. The Company reviews its estimates of rebates, chargebacks, and other applicable provisions each period and records any necessary adjustments in the current period's net product sales. </font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Government Rebates and Chargebacks: </font><font style="font-family:inherit;font-size:10pt;">The Company estimates reductions to product sales for Medicaid and Veterans' Administration ("VA") programs, and for certain other qualifying federal and state government programs. Based upon the Company's contracts with government agencies, statutorily-defined discounts applicable to government-funded programs, historical experience, and, in the case of EYLEA, estimated payer mix based on third-party market research data, the Company estimates and records an allowance for rebates and chargebacks. The Company's liability for Medicaid rebates consists of estimates for claims that a state will make for a current quarter, claims for prior quarters that have been estimated for which an invoice has not been received, and invoices received for claims from prior quarters that have not been paid. The Company's reserves related to discounted pricing offered to VA, Public Health Services ("PHS"), and other institutions (collectively, &#8220;qualified healthcare providers&#8221;) represent the Company's estimated obligations resulting from contractual commitments to sell products to qualified healthcare providers at prices lower than the list prices the Company charges to its customers (i.e., distributors and specialty pharmacies). The Company's customers charge the Company for the difference between what they pay for the products and the ultimate selling price to the qualified healthcare providers. The Company's reserve for this discounted pricing is based on expected sales to qualified healthcare providers and the chargebacks that customers have already claimed. </font></div><div style="line-height:120%;text-align:justify;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Distribution-Related Fees: </font><font style="font-family:inherit;font-size:10pt;">The Company has written contracts with its customers that include terms for distribution-related fees. The Company estimates and records distribution and related fees due to its customers based on gross sales. </font></div><div style="line-height:120%;text-align:justify;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Prompt Pay Discounts: </font><font style="font-family:inherit;font-size:10pt;"> No prompt pay discounts are currently offered to the Company's customers on sales of EYLEA. In connection with sales of ARCALYST, the Company offers discounts to its customers for prompt payments. The Company estimates these discounts based on customer terms and historical experience, and expects that its customers will always take advantage of this discount. Therefore, the Company accrues </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">100%</font><font style="font-family:inherit;font-size:10pt;"> of the prompt pay discount that is based on the gross amount of each ARCALYST</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt"> </sup></font><font style="font-family:inherit;font-size:10pt;">invoice, at the time of sale.</font></div><div style="line-height:120%;text-align:justify;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Product Returns: </font><font style="font-family:inherit;font-size:10pt;">Consistent with industry practice, the Company offers its customers a limited right to return product purchased directly from the Company, which is principally based upon the product's expiration date. The Company will accept returns for three months prior to and up to six months after the product expiration date. Product returned is generally not resalable given the nature of the Company's products and method of administration. The Company develops estimates for product returns based upon historical experience, inventory levels in the distribution channel, shelf life of the product, and other relevant factors. The Company monitors product supply levels in the distribution channel, as well as sales by its customers of EYLEA to healthcare providers and ARCALYST to patients using product-specific data provided by its customers. If necessary, the Company's estimates of product returns may be adjusted in the future based on actual returns experience, known or expected changes in the marketplace, or other factors. </font></div><div style="line-height:120%;text-align:justify;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></div>
CY2012 us-gaap Revenue Recognition Services Licensing Fees
RevenueRecognitionServicesLicensingFees
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"></font><font style="font-family:inherit;font-size:10pt;font-style:italic;">VelocImmune</font><font style="font-family:inherit;font-size:10pt;font-style:italic;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174; </sup></font><font style="font-family:inherit;font-size:10pt;">Technology Licensing</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company enters into non-exclusive license agreements with third parties that allow the third party to utilize the Company's </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">VelocImmune</font><font style="font-family:inherit;font-size:10pt;"> technology in its internal research programs. The terms of these agreements include up-front payments and entitle the Company to receive royalties on any future sales of products discovered by the third party using the Company's </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">VelocImmune </font><font style="font-family:inherit;font-size:10pt;">technology. Up-front payments under these agreements, where continuing involvement is required of the Company, are deferred and recognized ratably over their respective license periods.</font></div><div style="line-height:120%;text-align:justify;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></div>
CY2011 us-gaap Revenues
Revenues
445824000 USD
CY2012 us-gaap Revenues
Revenues
1378477000 USD
CY2010 us-gaap Revenues
Revenues
459074000 USD
CY2011Q2 us-gaap Revenues
Revenues
107810000 USD
CY2012Q4 us-gaap Revenues
Revenues
414602000 USD
CY2011Q1 us-gaap Revenues
Revenues
112204000 USD
CY2012Q3 us-gaap Revenues
Revenues
427687000 USD
CY2011Q3 us-gaap Revenues
Revenues
102833000 USD
CY2011Q4 us-gaap Revenues
Revenues
122977000 USD
CY2012Q1 us-gaap Revenues
Revenues
231789000 USD
CY2012Q2 us-gaap Revenues
Revenues
304399000 USD
CY2011 us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
44686000 USD
CY2012 us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
858093000 USD
CY2010 us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
25254000 USD
CY2011 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
117261000 USD
CY2010 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
65201000 USD
CY2012 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
210755000 USD
CY2012 us-gaap Share Based Compensation
ShareBasedCompensation
94157000 USD
CY2011 us-gaap Share Based Compensation
ShareBasedCompensation
56094000 USD
CY2010 us-gaap Share Based Compensation
ShareBasedCompensation
39897000 USD
CY2013Q1 us-gaap Stock Issued During Period Shares Employee Benefit Plan
StockIssuedDuringPeriodSharesEmployeeBenefitPlan
38877 shares
CY2011Q1 us-gaap Stock Issued During Period Shares Employee Benefit Plan
StockIssuedDuringPeriodSharesEmployeeBenefitPlan
91761 shares
CY2012Q1 us-gaap Stock Issued During Period Shares Employee Benefit Plan
StockIssuedDuringPeriodSharesEmployeeBenefitPlan
63937 shares
CY2010Q4 us-gaap Stock Issued During Period Shares New Issues
StockIssuedDuringPeriodSharesNewIssues
6325000 shares
CY2010 us-gaap Stock Issued During Period Value Employee Benefit Plan
StockIssuedDuringPeriodValueEmployeeBenefitPlan
2867000 USD
CY2012 us-gaap Stock Issued During Period Value Employee Benefit Plan
StockIssuedDuringPeriodValueEmployeeBenefitPlan
6325000 USD
CY2011 us-gaap Stock Issued During Period Value Employee Benefit Plan
StockIssuedDuringPeriodValueEmployeeBenefitPlan
6979000 USD
CY2010 us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
174828000 USD
CY2010Q4 us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
174800000 USD
CY2010 us-gaap Stock Issued During Period Value Stock Options Exercised
StockIssuedDuringPeriodValueStockOptionsExercised
25262000 USD
CY2011 us-gaap Stock Issued During Period Value Stock Options Exercised
StockIssuedDuringPeriodValueStockOptionsExercised
43615000 USD
CY2012 us-gaap Stock Issued During Period Value Stock Options Exercised
StockIssuedDuringPeriodValueStockOptionsExercised
67174000 USD
CY2012Q4 us-gaap Stockholders Equity
StockholdersEquity
1245385000 USD
CY2011Q4 us-gaap Stockholders Equity
StockholdersEquity
485732000 USD
CY2010Q4 us-gaap Stockholders Equity
StockholdersEquity
527815000 USD
CY2009Q4 us-gaap Stockholders Equity
StockholdersEquity
396762000 USD
CY2011Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
5596000 USD
CY2012Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
11274000 USD
CY2010Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
12819000 USD
CY2011 us-gaap Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities
UnrecognizedTaxBenefitsDecreasesResultingFromSettlementsWithTaxingAuthorities
9415000 USD
CY2012 us-gaap Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities
UnrecognizedTaxBenefitsDecreasesResultingFromSettlementsWithTaxingAuthorities
USD
CY2011 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
2192000 USD
CY2010 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
3550000 USD
CY2012 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
1873000 USD
CY2010 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions
9269000 USD
CY2012 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions
3805000 USD
CY2011 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions
USD
CY2012Q4 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate
8400000 USD
CY2011Q4 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate
4200000 USD
CY2010Q4 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate
12000000 USD
CY2012 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Use of Estimates</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Estimates which could have a significant impact on the Company's financial statements include:</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:36px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:12px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Product rebates, chargebacks, distribution-related fees, and returns in connection with the recognition of product sales revenue. </font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:36px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:12px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Periods over which payments, including non-refundable up-front, license, and milestone payments, are recognized as revenue in connection with collaboration and other agreements to develop and commercialize product candidates and utilize the Company's technology platforms.</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:36px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:12px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Periods over which certain clinical trial costs, including costs for clinical activities performed by contract research organizations, are recognized as research and development expenses.</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:36px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:12px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In connection with the recognition of expense, using a blended royalty rate, related to the Company's non-exclusive license with Genentech, Inc., the Company's estimate of cumulative EYLEA sales through May 7, 2016 (see Note 13b).</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:36px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:12px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In connection with stock option awards, (i) the fair value of stock options on their date of grant using the Black-Scholes option-pricing model, based on assumptions with respect to (a) expected volatility of the Company's Common Stock price, (b) the periods of time for which employees and members of the Company's board of directors are expected to hold their options prior to exercise (expected lives), (c) expected dividend yield on the Company's Common Stock, and (d) risk-free interest rates, which are based on quoted U.S. Treasury rates for securities with maturities approximating the options' expected lives; (ii) the number of stock option awards that are expected to be forfeited; and (iii) with respect to performance-based stock option awards, if and when the options' performance conditions are considered to be probable of attainment. </font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:36px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:12px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company's determination of whether marketable securities are other-than-temporarily impaired. The Company conducts a review of its portfolio of marketable securities, using both quantitative and qualitative factors, to determine, for securities whose current fair value is less than their cost, whether the decline in fair value below cost is other-than-temporary. In making this determination, the Company considers factors such as the length of time and the extent to which fair value has been less than cost, financial condition and near-term prospects of the issuer, recommendations of investment advisors, and forecasts of economic, market, or industry trends. This review process also includes an evaluation of the Company's ability and intent to hold individual securities until they mature or their full value can be recovered. This review is subjective and requires a high degree of judgment.</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:36px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:12px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Useful lives of property, plant, and equipment.</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:36px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:12px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Inventory that may expire prior to expected sale or has a cost basis in excess of its estimated realizable value, which is written-down, as appropriate. In addition, capitalization of inventory costs associated with the Company's products prior to regulatory approval when, based on management's judgment, future commercialization is considered probable and the future economic benefit is expected to be realized. </font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:36px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:12px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The extent to which deferred tax assets and liabilities are offset by a valuation allowance. </font></div></td></tr></table><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">With respect to the Company's collaborations with Sanofi and Bayer HealthCare:</font></div><div style="line-height:120%;text-align:justify;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:36px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:12px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Included in Sanofi collaboration revenue is the Company's share of profits or losses from commercialization of ZALTRAP, </font></div></td></tr></table><div style="line-height:120%;text-align:justify;padding-left:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">which is provided by Sanofi, and includes an estimate of the Company's share of profits or losses for the most recent fiscal quarter.</font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:36px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:12px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Included in Bayer HealthCare collaboration revenue is the Company's share of profits or losses from commercialization of EYLEA outside the United States, which is provided by Bayer HealthCare, and includes an estimate of the Company's share of profits or losses for the most recent fiscal quarter.</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:36px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:12px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Included in research and development expenses is the Company's share of EYLEA development expenses incurred by Bayer HealthCare, including the Company's share of Bayer HealthCare estimated development expenses for the most recent fiscal quarter.</font></div></td></tr></table><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">These estimates for the most recent fiscal quarter are adjusted, if necessary, in the subsequent quarter to reflect actual amounts for the quarter. </font></div></div>
CY2011Q4 us-gaap Valuation Allowances And Reserves Balance
ValuationAllowancesAndReservesBalance
2218000 USD
CY2012Q4 us-gaap Valuation Allowances And Reserves Balance
ValuationAllowancesAndReservesBalance
18826000 USD
CY2012 us-gaap Valuation Allowances And Reserves Charged To Other Accounts
ValuationAllowancesAndReservesChargedToOtherAccounts
62251000 USD
CY2012 us-gaap Valuation Allowances And Reserves Deductions
ValuationAllowancesAndReservesDeductions
45643000 USD
CY2010 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
shares
CY2012 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
20697000 shares
CY2011 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
shares
CY2012 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
115382000 shares
CY2010 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
82926000 shares
CY2011 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
90610000 shares
CY2010 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
82926000 shares
CY2012 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
94685000 shares
CY2011 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
90610000 shares
CY2011Q4 regn Accrued Capital Expenditures
AccruedCapitalExpenditures
6200000 USD
CY2010Q4 regn Accrued Capital Expenditures
AccruedCapitalExpenditures
10700000 USD
CY2012Q4 regn Accrued Capital Expenditures
AccruedCapitalExpenditures
8600000 USD
CY2012Q4 regn Accrued Clinical Trial Expense Current
AccruedClinicalTrialExpenseCurrent
10985000 USD
CY2011Q4 regn Accrued Clinical Trial Expense Current
AccruedClinicalTrialExpenseCurrent
9850000 USD
CY2011Q4 regn Accrued Sales Related Deductions And Royalties
AccruedSalesRelatedDeductionsAndRoyalties
3947000 USD
CY2012Q4 regn Accrued Sales Related Deductions And Royalties
AccruedSalesRelatedDeductionsAndRoyalties
21870000 USD
CY2011 regn Adjustment To Additional Paid In Capital Cost Of Convertible Note Hedge
AdjustmentToAdditionalPaidInCapitalCostOfConvertibleNoteHedge
117500000 USD
CY2011 regn Adjustments Related To Tax Withholding For Share Based Compensation Restricted Stock
AdjustmentsRelatedToTaxWithholdingForShareBasedCompensationRestrictedStock
2638000 USD
CY2012 regn Adjustments Related To Tax Withholding For Share Based Compensation Restricted Stock
AdjustmentsRelatedToTaxWithholdingForShareBasedCompensationRestrictedStock
50466000 USD
CY2011 regn Adjustments Related To Tax Withholding For Share Based Compensation Stock Options
AdjustmentsRelatedToTaxWithholdingForShareBasedCompensationStockOptions
22440000 USD
CY2012 regn Adjustments Related To Tax Withholding For Share Based Compensation Stock Options
AdjustmentsRelatedToTaxWithholdingForShareBasedCompensationStockOptions
112834000 USD
CY2010 regn Adjustments Related To Tax Withholding For Share Based Compensation Stock Options
AdjustmentsRelatedToTaxWithholdingForShareBasedCompensationStockOptions
3798000 USD
CY2010 regn Advance Payment Received Due To Amended Licensing Agreement
AdvancePaymentReceivedDueToAmendedLicensingAgreement
165000000 USD
CY2011Q4 regn Deferred Revenue Excluding Amounts From Related Party Current
DeferredRevenueExcludingAmountsFromRelatedPartyCurrent
31629000 USD
CY2012Q4 regn Deferred Revenue Excluding Amounts From Related Party Current
DeferredRevenueExcludingAmountsFromRelatedPartyCurrent
33809000 USD
CY2011Q4 regn Deferred Revenue Excluding Amounts From Related Party Non Current
DeferredRevenueExcludingAmountsFromRelatedPartyNonCurrent
162593000 USD
CY2012Q4 regn Deferred Revenue Excluding Amounts From Related Party Non Current
DeferredRevenueExcludingAmountsFromRelatedPartyNonCurrent
131822000 USD
CY2011Q4 regn Deferred Revenue From Related Party Current
DeferredRevenueFromRelatedPartyCurrent
20011000 USD
CY2012Q4 regn Deferred Revenue From Related Party Current
DeferredRevenueFromRelatedPartyCurrent
17022000 USD
CY2012Q4 regn Deferred Revenue From Related Party Noncurrent
DeferredRevenueFromRelatedPartyNoncurrent
76520000 USD
CY2011Q4 regn Deferred Revenue From Related Party Noncurrent
DeferredRevenueFromRelatedPartyNoncurrent
86017000 USD
CY2012Q4 regn Deferred Tax Assets Deferred Expense Capitalized Research And Development Costs
DeferredTaxAssetsDeferredExpenseCapitalizedResearchAndDevelopmentCosts
24437000 USD
CY2011Q4 regn Deferred Tax Assets Deferred Expense Capitalized Research And Development Costs
DeferredTaxAssetsDeferredExpenseCapitalizedResearchAndDevelopmentCosts
31371000 USD
CY2011Q4 regn Facility Lease Obligations Current
FacilityLeaseObligationsCurrent
1006000 USD
CY2012Q4 regn Facility Lease Obligations Current
FacilityLeaseObligationsCurrent
1374000 USD
CY2011Q4 regn Facility Lease Obligations Noncurrent
FacilityLeaseObligationsNoncurrent
159508000 USD
CY2012Q4 regn Facility Lease Obligations Noncurrent
FacilityLeaseObligationsNoncurrent
159436000 USD
CY2012Q4 regn Facility Leases Future Minimum Payments Due
FacilityLeasesFutureMinimumPaymentsDue
225052000 USD
CY2012Q4 regn Facility Leases Future Minimum Payments Due Current
FacilityLeasesFutureMinimumPaymentsDueCurrent
17462000 USD
CY2012Q4 regn Facility Leases Future Minimum Payments Due Due In Five Years
FacilityLeasesFutureMinimumPaymentsDueDueInFiveYears
19004000 USD
CY2012Q4 regn Facility Leases Future Minimum Payments Due Due In Four Years
FacilityLeasesFutureMinimumPaymentsDueDueInFourYears
18604000 USD
CY2012Q4 regn Facility Leases Future Minimum Payments Due Due In Three Years
FacilityLeasesFutureMinimumPaymentsDueDueInThreeYears
18214000 USD
CY2012Q4 regn Facility Leases Future Minimum Payments Due Due In Two Years
FacilityLeasesFutureMinimumPaymentsDueDueInTwoYears
17833000 USD
CY2012Q4 regn Facility Leases Future Minimum Payments Due Due Thereafter
FacilityLeasesFutureMinimumPaymentsDueDueThereafter
133935000 USD
CY2011 regn Income Tax Expense Benefit Resulting From Provision In American Recovery And Reinvestment Act Of2009
IncomeTaxExpenseBenefitResultingFromProvisionInAmericanRecoveryAndReinvestmentActOf2009
-700000 USD
CY2012 regn Incremental Common Shares Attributable To Nonvested Restricted Shares
IncrementalCommonSharesAttributableToNonvestedRestrictedShares
715000 shares
CY2011 regn Incremental Common Shares Attributable To Nonvested Restricted Shares
IncrementalCommonSharesAttributableToNonvestedRestrictedShares
shares
CY2010 regn Incremental Common Shares Attributable To Nonvested Restricted Shares
IncrementalCommonSharesAttributableToNonvestedRestrictedShares
shares
CY2012 regn Interest Expense In Connection With Facility Lease Obligation
InterestExpenseInConnectionWithFacilityLeaseObligation
16000000 USD
CY2011 regn Interest Expense In Connection With Facility Lease Obligation
InterestExpenseInConnectionWithFacilityLeaseObligation
15600000 USD
CY2012Q4 regn Marketable Debt Securities Collateral
MarketableDebtSecuritiesCollateral
3200000 USD
CY2011Q4 regn Marketable Debt Securities Collateral
MarketableDebtSecuritiesCollateral
3300000 USD
CY2010 regn Non Cash Interest Expense
NonCashInterestExpense
43000 USD
CY2011 regn Non Cash Interest Expense
NonCashInterestExpense
5101000 USD
CY2012 regn Non Cash Interest Expense
NonCashInterestExpense
22925000 USD
CY2011 regn Other Collaboration Revenue
OtherCollaborationRevenue
43072000 USD
CY2012 regn Other Collaboration Revenue
OtherCollaborationRevenue
70099000 USD
CY2010 regn Other Collaboration Revenue
OtherCollaborationRevenue
75393000 USD
CY2012Q4 regn Percentage Of Prompt Pay Discount Company Accrues
PercentageOfPromptPayDiscountCompanyAccrues
1
CY2012 regn Percentage Of Start Up Costs Of Total Contract Value Maximum
PercentageOfStartUpCostsOfTotalContractValueMaximum
0.20
CY2012 regn Percentage Of Start Up Costs Of Total Contract Value Minimum
PercentageOfStartUpCostsOfTotalContractValueMinimum
0.10
CY2012 regn Period For Achieving Sales Target For Milestone Payment Rolling Basis
PeriodForAchievingSalesTargetForMilestonePaymentRollingBasis
P12M
CY2010 regn Rent Charges For Utilities Real Estate Taxes And Operating Expense
RentChargesForUtilitiesRealEstateTaxesAndOperatingExpense
10300000 USD
CY2011 regn Rent Charges For Utilities Real Estate Taxes And Operating Expense
RentChargesForUtilitiesRealEstateTaxesAndOperatingExpense
9300000 USD
CY2012 regn Rent Charges For Utilities Real Estate Taxes And Operating Expense
RentChargesForUtilitiesRealEstateTaxesAndOperatingExpense
10900000 USD
CY2012 dei Amendment Flag
AmendmentFlag
false
CY2012 dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--12-31
CY2012 dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
FY
CY2012 dei Document Fiscal Year Focus
DocumentFiscalYearFocus
2012
CY2012 dei Document Period End Date
DocumentPeriodEndDate
2012-12-31
CY2012 dei Document Type
DocumentType
10-K
CY2012 dei Entity Central Index Key
EntityCentralIndexKey
0000872589
CY2012 dei Entity Current Reporting Status
EntityCurrentReportingStatus
Yes
CY2012 dei Entity Filer Category
EntityFilerCategory
Large Accelerated Filer
CY2012Q2 dei Entity Public Float
EntityPublicFloat
10364000000 USD
CY2012 dei Entity Registrant Name
EntityRegistrantName
REGENERON PHARMACEUTICALS INC
CY2012 dei Entity Voluntary Filers
EntityVoluntaryFilers
No
CY2012 dei Entity Well Known Seasoned Issuer
EntityWellKnownSeasonedIssuer
Yes

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