Biopharmaceutical company Celgene Corp. (CELG) reported Thursday a market-beating performance for the second quarter, helped by strong sales growth from its cancer drugs Revlimid and Vidaza. The Summit, New Jersey-based company also lifted its full year adjusted earnings and revenue forecast.
Second-quarter net income was $155.4 million or $0.33 per share, up from $142.8 million or $0.31 per share in the year ago quarter.
Excluding certain one-time items, net income climbed 50% in the quarter to $323.3 million or $0.69 per share from $216.0 million or $0.46 per share in the year ago quarter.
On average, 19 analysts polled by Thomson Reuters expected the company to report earnings of $0.66 per share. Analysts' estimates typically exclude special items.
Total revenues for the quarter were $852.69 million, much higher than $628.67 million in the prior year quarter. Sixteen analysts had consensus revenue estimate of $821.06 million for the quarter.
The company noted that non-GAAP total revenue increased 36% year-over-year to $850 million. Net product sales grew to $823.10 million from $598.15 million a year earlier.
Celgene attributed the increase in total revenue to global market share gains and increased duration of therapy of Revlimid, the company's flagship generic blood cancer drug.
In the quarter, net product sales of Revlimid grew a strong 48% to $587.1 million, and Vidaza's net product sales sales rose 43% to $132 million.
Commenting on the results, Robert Hugin, Chief Executive Officer of Celgene, said, "These outstanding results reflect the effectiveness of our operating strategies and the exceptional execution of our global team. Our portfolio of products and promising hematology and immune-inflammatory pipeline position us to make an increasingly meaningful impact on the lives of patients suffering from serious unmet medical conditions."
In the preceding first quarter, Celgene had reported net earnings of $234.44 million or $0.50 per share, and revenue of $791.25 million.
Further, Celgene raised its fiscal 2010 adjusted earnings per share outlook to a range of $2.65 to $2.70, from the prior range of $2.60 to $2.65. The revised adjusted earnings outlook includes an approximate $0.05 dilution from proposed acquisition of Abraxis BioScience, and represents about 30% increase from the prior year.
The company also lifted its fiscal 2010 total revenue outlook to a range of $3.40 billion to $3.45 billion, from a previous range of $3.3 billion to $3.4 billion. The revised forecast represents about 28% year-over-year growth. Celgene now expects Revlimid net product sales to increase about 37% from last year to $2.30 billion to $2.35 billion, higher than previous projection of $2.2 billion to $2.3 billion.
The company's full-year sales forecast excludes the effects of the proposed acquisition of Abraxis BioScience.
Analysts expect the company to report earnings of $2.68 per share on revenues of $3.36 billion for the year.
It was on June 30 that Celgene announced the signing of a definitive merger deal to acquire biotechnology company Abraxis BioScience Inc. (ABII). The upfront payment values Abraxis at about $2.9 billion, net of cash, and the deal is expected to close in the fourth quarter of 2010.
Celgene expects the deal to be modestly dilutive to non-GAAP earnings in 2011 and accretive in 2012 and beyond, and projects to add approximately $1 billion in revenue in 2015.
CELG is currently trading at $53.90, up $1.05 or 1.99%, on a volume of 275 thousand shares.
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