Celgene Corporation (NASDAQ: CELG) reported its fourth quarter financial results and beat estimates in both revenue and earnings sending shares 2.6 percent higher during Thursday’s pre-market hours.
For the fourth quarter, Celgene reported revenue of $3.5 billion, up 17 percent year over year, and beating analysts’ estimates by $10 million. Celgene reported an adjusted EPS of $2.00, increasing 24 percent year over year, and beating analysts’ estimates of $1.97.
Revlimid, Celgene’s drug used to treat myelodysplastic syndrome, multiple myeloma, and mantle cell lymphoma, accounts for a majority of Celgene’s net sales. In the fourth quarter, net revenue for Revlimid was $2.2 billion, increasing 21 percent year over year. Sales growth was driven due to higher volume due to increases in duration and market share.
Otezla also recorded strong growth, increasing 22 percent year over year to $371 million. Pomalyst increased 17 percent year over year to $442 million. Overall, net sales for Celgene’s drugs increased 17 percent year over year.
"Our 2017 commercial, regulatory and clinical execution lay the foundation for success in 2018 and beyond," said Mark J. Alles, Chief Executive Officer of Celgene Corporation. "Our operating momentum enables us to continue expanding our portfolio, as demonstrated by the two strategic transactions announced this year."
Celgene’s back to back acquisitions in a short time is due to its Revlimid losing its patent protection in the next few years. The two acquisitions will now expands Celgene’s diverse cancer treatment portfolio.
Both transactions are expected to close within the first quarter of 2018.
Celgene reiterates its guidance provided in the third quarter of 2017. For 2020, Celgene forecasts net sales between $19 billion and $20 billion on an EPS between $12.50 and $13.00.