What drove Regeneron's operating expenses growth in 2023?

Regeneron's operating expenses growth in 2023 was primarily driven by several strategic initiatives and operational factors that contributed to the company's expansion and profitability: 1. **Antibody Collaboration and Margin Expansion**: The company's increasing profitability from antibody collaborations is a key driver. Expectations for further margin expansion are fueled by improvements in drug substance yield from a new manufacturing process for DUPIXENT. This strategic enhancement in manufacturing efficiency is likely to positively impact operating margins, reflecting improved operational effectiveness and cost management. 2. **Roche Collaboration Revenue**: The recognition of $222 million in collaboration revenue with Roche is a significant contributor to Regeneron's financial performance. This partnership highlights the value of collaborative research and development, which can help spread the cost of innovation and increase the return on investment in R&D activities. 3. **Global Rights Acquisition and Headcount Growth**: The acquisition of global rights to Libtayo has led to increased operations and related costs. Additionally, higher headcount and associated expenses reflect the company's growth trajectory and its investment in talent and infrastructure to support future developments and market expansions. 4. **Patient Assistance and Manufacturing Costs**: The increase in COCM (Cost of Commercial and Marketing) to $213 million, up 44% versus the prior year, is driven by manufacturing costs, especially for Dupixent. This indicates that while manufacturing processes are improving, they are still evolving and incuring additional costs, which are being absorbed as the company scales up production. In summary, Regeneron's operating expenses growth in 2023 is a result of strategic investments in expanding its product portfolio, enhancing manufacturing capabilities, and pursuing collaborations that contribute to long-term profitability and market leadership in the pharmaceutical sector.