Regeneron rises on 4Q outlook for Eylea

NEW YORK (AP) -- Shares of Regeneron Pharmaceuticals climbed Tuesday after the company said it expects to report strong fourth-quarter sales of its eye disease drug Eylea, and formed a new collaboration with partner Bayer HealthCare.

Regeneron said U.S. sales of Eylea totaled about $400 million in the fourth quarter. Analysts expected $393 million, according to FactSet.

Eylea is used to treat the eye conditions "wet" age-related macular degeneration and a form of macular edema. Regeneron handles sales in the U.S., and the companies share profits on sales in other countries. The Tarrytown, N.Y., company said U.S. sales nearly doubled to $1.4 billion in 2013.

Regeneron and Bayer also said Monday that they will work on a new treatment for "wet" age-related macular degeneration that could work in combination with Eylea. The companies want to start clinical testing of the new drug this year. Bayer will pay Regeneron $25.5 million upfront and it could pay another $40 million in option and milestone payments during development of the product.

The companies will share the costs of developing the drug. Regeneron will hold its U.S. marketing rights, and Bayer will have an option to market it in other countries. The two companies would split the profits on those sales.

Shares of Regeneron Pharmaceuticals Inc. rose $31.64, or 12 percent, to close at $300.32. The stock has gained 67 percent over the past 12 months.