Celgene Earnings Beat and Updated Guidance

By Chris Lange Published Jul 23, 9:50AM EDT

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Celgene Corp. (NASDAQ: CELG) released its second-quarter earnings report Thursday before the markets opened. The major biotech had $1.23 in earnings per share (EPS) on $2.28 billion in revenue, versus Thomson Reuters consensus estimates of $1.20 in EPS on $2.27 billion in revenue. The same period from last year had $0.90 in EPS on $1.87 billion in revenue.

The company issued guidance for the 2015 full year. Celgene expects total net product sales to be in the range of $9.0 billion to $9.5 billion and EPS to be in the range of $4.75 to $4.85, up from the previous range of $4.60 to $4.75.

The company reported net product sales for the quarter in comparison to the same quarter last year:

Revlimid had sales of $1.44 billion, up 19%.
Abraxane had sales of $244.2 million, up 13.4%.
Pomalyst/Imnovid had sales of $234.5 million, up 45.7%.
Vidaza had sales of $152.1 million, up 0.1%.
Azacitidine for injection had sales of $22.3, down 8.6%.
Otezla had sales of $89.7 million.
Thalomid had sales of $47.9 million, down 11.8%.
Istodax had sales of $17.9 million, up 4.7%.
All other products had sales of $1.5 million, down from $2.3 million.

In the second quarter, Celgene purchased approximately 7.9 million of its shares at a total cost of about $902 million. At the end of June 2015, the Celgene had roughly $5.1 billion remaining under its stock repurchase program, including its most recent $4.0 billion share repurchase authorization.

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Bob Hugin, chairman and CEO of Celgene, said:

The Celgene team delivered exceptional results across the portfolio in the second quarter. We continue to invest strategically in the long-term future of Celgene and expect our recently announced transactions with AstraZeneca, Juno and Receptos to accelerate our earnings growth beginning in 2019.

At the end of the quarter, the company had $7.50 billion in cash, cash equivalents and marketable securities, compared to $7.55 billion in same period of the previous year. This quarter also had operating cash flow of $284 million, which included $570 million of upfront payments relating to research and development collaborations.

Shares of Celgene were down 0.5% at $137.53 early Thursday, in a 52-week trading range of $83.16 to $139.12. The stock has a consensus analyst price target of $145.22.

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.