Celgene Corporation (CELG – Free Report) reported mixed results in third-quarter 2017 wherein earnings beat expectations but sales failed to meet estimates.
The company reported adjusted earnings of $1.91 per share which beat the Zacks Consensus Estimate of $1.88, up from $1.58 in the year-ago quarter.
Total revenues grew 10.2% to $3.29 billion in the quarter but missed the Zacks Consensus Estimate of $3.42 billion. Revenues were boosted by consistent performance of the company’s key growth driver, Revlimid. However, sales of Otezla in the United States were weak.
Celgene’s stock has fallen 3.5% in the last six months as against the industry’s gain of 3.2%. Shares of the company are down in the pre-market trading due to revenue miss in the third quarter.The stock was hit earlier after a phase III trial, REVOLVE, (CD-002) on pipeline candidate GED-0301 in Crohn’s disease and the extension trial, SUSTAIN (CD-004) was discontinued.
Revlimid Continues to Shine
Net product sales increased 10.6% year over year to $3.28 billion. Net sales of Revlimid came in at $2.0 billion, reflecting 10% year-over-year growth. The drug performed well in the United States (up 17.9%). Growth in the reported quarter was driven by increased volume as a result of increases in duration of treatment and market share.
Net sales of another cancer drug, Abraxane increased 7.7% to $251 million as sales grew both in the United States and international markets. Sales of oncology drug, Pomalyst/Imnovid, came in at $417 million, up 22.3%. Sales were driven by increased volume from duration gains.
Otezla reported sales of $308 million in the reported quarter, up 12%. Sales in the United States were impacted by an increase in gross-to-net adjustments from contracts implemented in January and a slowing in overall category growth due to a more challenging market access environment.
All other product sales (including Istodax, Thalomid, Vidaza and an authorized generic version of Vidaza in the United States) totaled $226 million in the reported quarter, down from $228 million from the year-ago quarter.
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