Celgene expects revenue to double by 2020

Celgene announced Monday preliminary earnings for 2014 and said that it expects its revenue to double to $20 billion by 2020. Meanwhile, the company estimated that its haematology business will grow to $14.8 billion by the same time, while earnings are expected to total $12.50 per share. Analysts had forecast earnings of $11.42 per share on $17.9 billion in revenue.

For the quarter ended December 31, Celgene expects its revenue to total $2.05 billion, including a negative currency impact of $25 million, with analyst forecasting about $2.08 billion. Meanwhile, the drugmaker indicated that its full-year sales for 2014 will grow by 19 percent to $7.6 billion despite prior guidance indicating that sales would surpass this value. Analysts forecast full-year sales of approximately $7.7 billion.

"2014 was an exceptional year for Celgene and the momentum from our core businesses positions us for another year of outstanding execution," commented Celgene CEO Bob Hugin, adding "the depth of our 2014 accomplishments creates an inflection point, providing greater clarity on the opportunities for 2020 and beyond."

For specific products, Celgene estimates that Revlimid sales totalled nearly $5 billion last year, up 16 percent year-over-year. The company forecast 2015 sales for the product of $5.6 billion to $5.7 billion as the therapy gains wider approval to treat additional cancer indications, with analysts expecting revenue of $5.8 billion.

Specifically, the FDA is expected to consider expanding the approval of Revlimid to include newly diagnosed multiple myeloma, with regulatory decisions also anticipated in Japan and Europe. In addition, Celgene will also initiate patient enrolment in several clinical trials evaluating the efficacy of the therapy in the treatment of a form of lymphoma, as well as continue expansion of the drug in Brazil, Mexico and Russia.

For 2015, Celgene forecast full-year per-share earnings in the range of $4.60 to $4.75 a share on $9.0 billion to $9.5 billion in revenue, compared to analyst estimates of $4.85 per share on $9.3 billion in revenue. The drugmaker cautioned that its 2015 forecast includes a negative currency impact of $100 million.

Meanwhile, the company reaffirmed its long-term target of $13 billion to $14 billion in revenue by 2017. Celgene is expected to announce its fourth-quarter earnings on January 29.

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