) recently provided an encouraging guidance for 2013. The
biopharmaceutical company expects adjusted earnings for 2013 in
the range of $5.50-$5.60 per share, up 12-14% over expected
earnings of $4.90 per share in 2012. While the Zacks Consensus
Estimate for 2012 is $4.44 per share, it is currently pegged at
$4.91 per share for 2013.
Net product sales for 2013 are expected to be approximately $6.0
billion, up 11.4% year over year. Net sales of oncology drug
Revlimid, the key growth driver at Celgene, is projected in the
range of $4.1 - $4.2 billion, reflecting an increase of 9 - 12 %
Celgene maintained its view for 2015. The company continues to
expect adjusted earnings for 2015 in the range of $8.00 - $9.00
per share. Net product sales for 2015 are still forecasted in the
range of $8.0-9.0 billion.
Celgene also provided a rosy outlook for 2017. The company
projects net product sales of $12.0 billion for 2017. Moreover,
adjusted earnings per share for 2017 are forecasted in the range
of $13.00 - $14.00.
Celgene expects robust sales from another oncology drug,
Abraxane, over the long-term. Sales of the drug are expected in
the range of $1.0 - $1.25 billion in 2015 and $1.5 - $2.0 billion
in 2017. Net product sales at Celgene are expected to increase at
a compounded annual growth rate of 19% from 2013 to 2017.
The company, which will announce its fourth quarter and full-year
2012 results shortly, expects net product sales for 2012 to be
$5.4 billion, up 15% year over year. Celgene expects 2012
revenues of $5.5 billion, up 14% year over year, driven by strong
Revlimid sales. Sales of Revlimid are expected to exceed $1.0
billion in the final quarter of 2012.
Celgene has a diversified pipeline, which upon successful
development is expected to strengthen its top-line further. The
company has a series of pipeline events lined up:
The decision on oncology candidate pomalidomide is an eagerly
awaited event. The candidate is under review in the US; a
response from the US Food and Drug Administration (FDA) should be
out by February 10, 2013.
CELGENE CORP (CELG): Free Stock Analysis
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Moreover, Celgene is highly optimistic on the potential of
apremilast, which is being developed for multiple indications.
Recently, Celgene presented encouraging data from two phase III
studies (ESTEEM 1 and 2), evaluating apremilast in patients
suffering from moderate-to-severe chronic plaque psoriasis.
Celgene expects to seek FDA approval for the indication on the
basis of data from the two studies in the second half of 2013.
Celgene intends to seek US approval for apremilast in the
psoriatic arthritis indication in the first quarter of 2013. EU
approval for apremilast in the psoriasis and psoriatic arthritis
indications is expected to be sought in the second half of 2013.
We have a Neutral recommendation on Celgene. The stock carries a
Zacks #3 Rank (Hold) in the short run. Biopharmaceutical stocks
that carry a Zacks #1 Rank (Strong Buy) include