SUMMIT (dpa-AFX) - Biopharmaceutical company Celgene Corp. (CELG) reported Thursday higher profit in its second quarter, boosted by strong growth in net product sales. Adjusted earnings and top line beat analysts' estimates. Further, the company trimmed its forecast for fiscal 2014 reported earnings, while raised adjusted earnings and sales view.
Bob Hugin, chairman and chief executive officer, said, 'Strong second quarter operating and financial results demonstrate the significant momentum of our portfolio and support raising our 2014 guidance. We look forward to multiple milestones in the second half of the year, including the expansion of Otezla into psoriasis and the further advancement of our pipeline.'
For the second quarter, net income was $597.8 million or $0.72 per share, compared to $478.1 million or $0.56 per share, on a split-adjusted basis.
Adjusted net income, which excluded certain items, was $748 million or $0.90 per share for the quarter, compared to $653 million or $0.76 per share on a split-adjusted basis.
On average, 24 analysts polled by Thomson Reuters expected the company to report profit per share of $0.89 for the quarter. Analysts' estimates typically exclude special items.
Total revenue increased 17 percent to $1.87 billion from $1.60 billion in the prior year. Analysts expected revenue of $1.85 billion for the quarter.
Net product sales were $1.85 billion, an 18 percent increase from $1.56 billion a year ago.
The company noted that sales of Revlimid for the treatment of multiple myeloma increased 15 percent year-over-year to $1.21 billion and were driven by volume in both the U.S. and International markets
Sales of Abraxane for the treatment of breast cancer climbed 39 percent and Pomalyst/Imnovid sales surged 143 percent.
Vidaza sales, meanwhile, decreased 28 percent, reflecting the year-over-year impact of the entry of generic azacitidine in the U.S. market. U.S. sales decreased 89 percent, while International sales increased 12 percent.
Looking ahead, Celgene now expects earnings per share on a reported basis to be in the range of $2.46 to $2.55, compared to previous range of $2.47 to $2.59.
Adjusted earnings per share are now expected in a range of $3.60 to $3.65, higher than previous estimate of $3.50 to $3.60, and an increase of approximately 22 percent over 2013.
The company raised fiscal 2014 total revenue guidance to approximately $7.60 billion from $7.50 billion, an increase of approximately 17 percent year-over-year.
Analysts expect the company to report fiscal 2014 earnings per share of $3.67 on revenue of $7.54 billion.
The company also raised total net product sales to above $7.50 billion from the previous range of $7.30 billion to $7.40 billion, an increase of approximately 18 percent from last year.
Further, Celgene announced that Robert Hershberg is joining the firm to lead its research and early development efforts in immuno-oncology and a newly formed Celgene Immuno-Oncology Center of Excellence to be based in Seattle, Washington.
On Nasdaq, Celgene shares are losing $3.81 or 4.41 percent, and trading at $85.28
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