Biotech Stock News: Celgene Beats Q3 Earnings Estimates

Celgene Corporation (CELG) reported third-quarter 2014 earnings of 88 cents per share (including stock-based compensation expenses), which surpassed the Zacks Consensus Estimate by 6 cents. The company’s earnings were $1.39 per share in the year-ago quarter. We note that figures have been adjusted to reflect the two-for-one stock split effected earlier in the year.

Total revenues climbed 18% year over year to $1.98 billion in the third quarter. Revenues were boosted by the impressive performance of Revlimid. Net product sales climbed 19% year over year to $1.96 billion. Revenues edged past the Zacks Consensus Estimate of $1.95 billion.

Net sales of Revlimid, the key growth driver at Celgene, came in at $1.3 billion, reflecting an increase of 19% over the year-ago period. The drug did well both in the U.S. (up 20%) and international markets (up 18%). Market share gains, geographic expansion and increased duration of therapy drove sales in the reported quarter.

The drug is approved in many countries across the globe in combination with dexamethasone for treating multiple myeloma (MM) patients, who have received at least one prior therapy. Revlimid is also approved in the U.S. in the relapsed refractory mantle cell lymphoma indication.

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Revlimid is also available in many countries for treating transfusion-dependent anemia due to low or intermediate-1-risk myelodysplastic syndrome (MDS) associated with a deletion 5q cytogenetic abnormality (with or without additional cytogenetic irregularities). Celgene is looking to expand the drug’s label. For this purpose, it has filed regulatory applications in the U.S. in the newly diagnosed MM indication. The FDA target date is Feb 22, 2015.

Revlimid is also under review in the EU for the same indication. An opinion from the European Medicines Agency’s (EMA) Committee for Medicinal Products for Human Use (CHMP) is expected in the first half of next year.

Net sales of another cancer drug, Abraxane, climbed 25% year over year to $212 million. Net sales of Vidaza declined 28% year over year to $158 million. Lackluster U.S. sales (down 87%) due to generic competition hurt results during the quarter. U.S. sales of another oncology drug Pomalyst came in at $118 million, up 13.5% sequentially. The drug gained FDA approval in Feb 2013.

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Apart from announcing its earnings results, Celgene declared that it has entered into a strategic collaboration and option deal with Sutro Biopharma, Inc. for the discovery and development of multispecific antibodies and antibody drug conjugates (ADCs). Celgene also has the sole option to acquire Sutro on pre-specified terms. The new deal has expanded the 2012 agreement between the companies to include immuno-oncology candidates.

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