By Dow Jones Business News, October 24, 2013, 11:51:00 AM EDT
(Updated throughout to add details.)
--Celgene sales up 18% to $1.67 billion, but profits decline on higher costs
--New product approvals and expanded patient indications help lift key drug sales
--Celgene shares fall 1.4% to $157.63; stock has doubled year-to-date
By Joseph Walker
Celgene Corp.( CELG ) posted double-digit sales growth in the third quarter, driven by bigger demand for its cancer
drugs, even as its earnings fell 12% due to acquisition and restructuring costs.
The biotechnology company has pursued an aggressive growth strategy, spending heavily to purchase and develop new
drugs, which Celgene says will help it double sales by 2017. Many of those bets began to pay off in the third quarter,
following a string of positive regulatory decisions over the past year.
Sales of Abraxane rose 60% with new approvals in pancreatic and lung cancer, the company said, while revenues from its
newly approved multiple myeloma therapy Pomalyst were up 35% from the second quarter and exceeded analysts' estimates.
Meanwhile, sales of Celgene's biggest-selling drug, Revlimid, rose 12% to $1.09 billion on increased demand and longer
"We are energized by the significant promise of our innovative portfolio," Chief Executive Robert Hugin said during a
conference call with analysts.
For 2013, the company raised its adjusted per-share earnings estimate to $5.90 to $5.95, up from $5.80 to $5.90 a
share previously. Celgene now expects products sales to "exceed" its previous guidance of $6.2 billion.
Celgene reported a profit of $372 million, or 87 cents a share, which exceeded analysts' estimates but was down from $
424 million, or 97 cents a share, a year earlier. Excluding certain items, adjusted earnings were up at $1.56 from $
1.29. Revenue increased 18% to $1.67 billion.
Part of the earnings decline was due to increased research and development expenses, which rose 32% amid increased
spending for clinical trials of new treatments.
Celgene shares fell 1.4% to $157.63 in recent trading, possibly as investors looked to lock in profits on a stock that
has doubled this year.
-Tess Stynes contributed to this article.
Write to Joseph Walker at email@example.com
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