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Celgene Corporation (NASDAQ:CELG) Beats Earnings

Celgene Corporation (NASDAQ:CELG) Earnings

Date Published: 7-28-2016

Preface
Celgene Corporation (NASDAQ:CELG) released earnings this morning before the open and the company beat Wall Street estimates. The stock is up smartly on the day.

EARNINGS
Celgene Corporation reported $1.44 in earnings per share versus street estimates of $1.39. Further, Celgene reported $2.75 billion in revenue versus estimates of $2.70 billion. The company also raised guidance for full year 2016, projecting EPS in a tight range of $5.70 to $5.75, up from prior guidance of $5.60 to $5.70. Remember, Celgene Corporation updated its guidance all the way out to the year 2020, forecasting $21 billion in revenue and EPS of $13.

BEYOND THE HEADLINES
Here is what Celgene Corporation (NASDAQ:CELG) disclosed in its press release and earnings call:
Revlimid sales for the second quarter increased 18% year-over-year to $1,701 million and were driven by new patient market share gains and increased duration. U.S. sales of $1,080 million and international sales of $621 million increased 24 percent and 9% year-over-year, respectively.

Pomalyst/Imnovid sales for the second quarter were $318 million, an increase of 35% year-over-year. U.S. sales were $185 million and international sales were $133 million, an increase of 29% and 46% year-over-year, respectively. Pomalyst/Imnovid sales grew due to increased volume from duration gains.

Abraxane sales for the second quarter were $249 million, a 2% increase year-over-year. U.S. sales of $175 million increased 3% year-over-year. International sales were $74 million. Otezla sales for the second quarter were $242 million, a 170% increase year-over-year. U.S. sales were $217 million and international sales were $25 million. Sales were driven by market share gains and increased prescriber adoption.

In the second quarter, all other product sales, which include Thalomid, Istodax, Vidaza and an authorized generic version of Vidaza drug product in the U.S., were $235 million compared to $242 million in the second quarter of 2015.

BEYOND THE DETAILS
Taking a step backwards, we can see that Celgene Corporation is a marvel. It has a rich pipeline, the most successful oncology drug in the world and a handful of partnerships that pose little risk to the firm but enormous potential upside for future earnings.

Here is how Celgene's internal pipeline looks relative to the rest of large cap biotechnology:

The chart above plots the number of Phase II trials for each of the biotechnology and pharmaceutical companies with market caps above $5 billion. We can see that Celgene Corporation (NASDAQ:CELG) has the most, tied with pharma giant Pfizer Inc. (NYSE:PFE).

But, there's actually a lot more going on with Celgene, too much to cover in one news post.

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