Celgene raises annual guidance as third-quarter sales, profit grow

Celgene announced Thursday that third-quarter revenue jumped 18 percent year-over-year to just under $2 billion, roughly in line with analyst expectations, boosted by increased sales of Revlimid and Abraxane. Meanwhile, net income in the three-month period surged 37 percent to $508.5 million.

The company noted that quarterly sales of Revlimid rose 19 percent versus the year-ago period to $1.3 billion, meeting analyst forecasts, with the increased volume driven by 20 percent and 18 percent revenue growth in the US and Europe, respectively, to $760.2 million and $539.8 million. Abraxane sales totalled $212.2 million, up 25 percent year-over-year, but falling short of analyst estimates of $232 million. The company said that the jump in Abraxane revenue reflects the product's ongoing US launch for the treatment of pancreatic cancer, as well as early launch success for the same indication in Europe.

In addition, quarterly sales of Pomalyst reached $181.1 million, topping analyst predictions of $176 million. Meanwhile, Otezla generated $17.6 million in revenue in its first full quarter on the market following its approval by the FDA for the treatment of psoriatic arthritis in March. Celgene stated that the therapy "had captured the highest share of new patients of any brand in the US psoriatic arthritis category" as of the end of July. The oral PDE4 inhibitor, which was additionally cleared for the treatment of moderate-to-severe plaque psoriasis in select patients last month, is also under development for a number of other indications, including Behçet's disease and ulcerative colitis.

"We delivered outstanding third-quarter results setting up a strong finish to 2014," remarked CEO Bob Hugin. For the full year, Celgene said it now expects revenue to exceed its previous forecast of $7.6 billion, representing an increase of approximately 17 percent year-over-year. Meanwhile, earnings per share are predicted to be in the range of $3.65 to $3.70, lifted from an earlier estimate of $3.60 to $3.65, representing an increase of 23 percent. Analysts predict annual earnings of $3.67 per share on revenues of around $7.6 billion.

Commenting on the results, Cowen and Co analyst Eric Schmidt said "overall the numbers were good, a couple pennies above expectations with a little boost to the guidance. It's ho hum, but solid." Schmidt noted that "Revlimid and Pomalyst were particularly strong," although the analyst suggested that "Otezla is having a difficult time getting some traction."

Separately on Thursday, Celgene entered a deal with Sutro Biopharma potentially worth more than $1 billion to discover and develop multispecific antibodies and antibody drug conjugates in the field of immuno-oncology.

To read more Top Story articles, click here.