Regeneron Pharmaceuticals — Oct 31, 2024 release

6 A reconciliation of full year 2024 GAAP to non-GAAP financial guidance is included below: Projected Range ($ in millions) Low High GAAP R&D $ 5,055  $ 5,145  Stock-based compensation expense 520  540  Acquisition and integration costs 10  30  Non-GAAP R&D $ 4,525  $ 4,575  GAAP SG&A $ 2,930  $ 3,020  Stock-based compensation expense 340  360  Acquisition, integration, and other costs 40  60  Non-GAAP SG&A $ 2,550  $ 2,600  GAAP gross margin on net product sales Approximately 86% Approximately 86% Stock-based compensation expense 1% 1% Intangible asset amortization expense 1% 1% Acquisition and integration costs <1% <1% Non-GAAP gross margin on net product sales Approximately 89% Approximately 89% GAAP ETR 8% 9% Income tax effect of GAAP to non-GAAP reconciling items 2% 2% Non-GAAP ETR 10% 11% 7 (a) This press release uses non-GAAP R&D, non-GAAP SG&A, non-GAAP COGS, non-GAAP gross margin on net product sales, non-GAAP other operating (income) expense, net, non-GAAP other income (expense), net, non-GAAP ETR, non-GAAP net income, non-GAAP net income per share, total revenues excluding Ronapreve ™(b) , and free cash flow, which are financial measures that are not calculated in accordance with U.S. Generally Accepted Accounting Principles (GAAP). These non-GAAP financial measures are computed by excluding certain non-cash and/or other items from the related GAAP financial measure. The Company also includes a non-GAAP adjustment for the estimated income tax effect of reconciling items. A reconciliation of the Company's GAAP to non-GAAP results is included in Table 3 of this press release. The Company makes such adjustments for items the Company does not view as useful in evaluating its operating performance. For example, adjustments may be made for items that fluctuate from period to period based on factors that are not within the Company's control (such as the