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Celgene's Preliminary Results & 2015 Outlook Encouraging - Analyst Blog

Celgene Corporation ( CELG ) provided encouraging guidance for 2015. The company expects adjusted earnings for 2015 in the range of $4.60-$4.75 per share, up 26% over expected earnings of $3.71 per share in 2014. While the Zacks Consensus Estimate for 2014 is $3.26 per share, it is $4.29 per share for 2015.

Net product sales for 2015 are expected to be approximately $9-$9.5 billon, up 22.3% year over year. Foreign exchange translations are expected to impact revenues negatively by $100 million. Net sales of oncology drug, Revlimid, the key growth driver at Celgene, are projected in the range of $5.6-$5.7 billion, reflecting an increase of 13.5 % year over year.

Celgene expects 2015 to be dominated by news related to its pipeline and label expansion efforts.

Celgene maintained its view for 2017. The company continues to expect adjusted earnings for 2017 to be approximately $7.50 per share. Net product sales for 2017 are still forecast in the range of $13-$14 billion.

Celgene also provided a rosy outlook for 2020. The company projects net product sales of $20 billion for 2020. Moreover, adjusted earnings per share for 2020 are expected to be approximately $12.50 per share.

Celgene will announce its fourth quarter and full year 2014 results on Jan 29. As per the preliminary results, the company expects adjusted earnings per share for the fourth quarter 2014 of $1.01. The Zacks Consensus Estimate for the quarter currently stands at 88 cents.

Net product sales for the fourth quarter are expected to be approximately $2.05 billion, including a negative foreign exchange impact of $25 million.

Net product sales are expected to be approximately $7.56 billion, up 19% year over year in 2014. Net sales of Revlimid are projected at $4.98 billion, reflecting an increase of 16%. Sales of Abraxane in 2014 are projected to grow at 31% to $848 million. Pomalyst/ Imnovid and Otezla are expected to contribute $680 million and $70 million, respectively, to Celgene's 2014 total revenues.

We expect Celgene to easily achieve its guidance driven by its strong product portfolio.

Celgene carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector include AMAG Pharmaceuticals, Inc. ( AMAG ), Affymetrix Inc. ( AFFX ) and Alexion Pharmaceuticals, Inc. ( ALXN ). All three stocks carry a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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