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Celgene CEO: Strong Q1 Led To Improved Full-Year Guidance

Celgene CEO: Strong Q1 Led To Improved Full-Year Guidance

Biopharma Celgene Corporation (NASDAQ: CELG) reported first-quarter earnings, lowered its 2018 full-year EPS guidance and raised its sales guidance for the year before the open Friday. 

What Happened

Total net product sales of $3.53 billion in Q1 were 20 percent higher from the same period in 2017, but Celgene's U.S. GAAP net income of $846 million and diluted EPS of $1.10 were lower than in the prior year. In Q1 of 2017, Celgene reported U.S. GAAP net income of $932 million and diluted EPS of $1.15. 

Adjusted net income was $1.58 billion, an increase of 16 percent from the same period in 2017. Adjusted earnings per share in Q1 increased by 23 percent from $1.67 to $2.05 against a consensus EPS figure of $1.96. Celgene reported sales in the quarter of $3.53 billion versus a $3.46-billion consensus estimate. 

Why It's Important

Celgene Chairman and the CEO Mark J. Alles said that a strong first quarter led to improvement in the company's full year 2018 guidance. Sales of Revlimid, Pomalyst/Imnovid and Otezla were significantly higher than in Q1 of 2017, and the products had the biggest impact on the increase in total net product sales.

On the cost side, adjusted R&D expenses were $694 million in Q1 versus $595 million in the same quarter one year ago. Adjusted SG&A expenses were $671 million versus $539 million in Q1 2017. 

What's Next

Celgene updated its 2018 guidance. The previous guidance didn't include the Juno Therapeutics acquisition, which should have a dilutive impact on Celgene's adjusted diluted EPS. Previously, Celgene expected revenue in the range of $14.4 to $14.8 billion and adjusted diluted EPS between $8.70 and $8.90. Now the company projects revenue of $14.8 billion for the year. Without Juno Therapeutics, Celgene expects adjusted EPS to reach $8.95, and with Juno, they forecast the figure at $8.45.

Celgene shares were up 1.32 percent at the time of publication Friday afternoon. 

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Photo courtesy of Celgene. 

Posted-In: Imnovid Juno Therapeutics Mark AllesBiotech Earnings News Guidance General Best of Benzinga


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