Celgene said that it sees its adjusted earnings per share for full year of 2007 to double to about $1.05, compared to 2006. On average, 18 analysts polled by Thomson FirstCall also expect the company to earn $1.05 per share for the year.
The company said that its total revenue for 2007 climbed more than 55%, year-over-year, to about $1.4 billion, topping analysts' revenue consensus estimate of $1.37 billion. In 2006, Celgene reported revenues of $898.9 million.
In the fourth quarter of 2007, Celgene's multiple myeloma compound, Revlimid notched up sales in the range of $240 - $245 million, reflecting an increase of more than 95%, over the year-ago quarter. In the third quarter, Revlimid sales totaled $199 million.
Revlimid is a derivative of the infamous sedative - thalidomide that was linked to birth defects, decades back. Revlimid was approved by the FDA in July of 2006, in combination with dexamethasone to treat multiple myeloma in patients who have failed to respond to a prior therapy. The drug received the FDA approval for the treatment of patients with a blood disorder known as Myelodysplastic Syndrome or MDS in December 2005. MDS is a collection of disorders in which the bone marrow does not function normally and the body does not make enough normal blood cells.
Looking ahead to 2008, Celgene forecast its adjusted per share earnings in the range of $1.50 - $1.55, while analysts expect the company to earn $1.55 per share. The company anticipates 2008 revenues to climb more than 30% to about $1.8 billion. Analysts have a revenue consensus estimate of $2.04 billion for the period. However, analysts' estimates included the expected acquisition of Pharmion Corp. (PHRM | news | PowerRating | PR Charts ), the company said, while the firm's projection does not.
Revlimid sales for 2008 are expected to increase more than 60% to about $1.25 billion.
With Revlimid expected to be commercialized in nearly 100 countries over the next five years, the company remains optimistic of significant growth in the years to come. Revlimid received approval for multiple myeloma in the EU in June 2007. Market experts see Revlimid achieving sales of $2.8 billion by 2011.
Celgene is shoring up its pipeline as can be seen from the company's move to acquire Pharmion Corp. for $2.9 billion in cash and stock. The deal is expected to close in April 2008. The acquisition of Pharmion, one of the first big acquisitions for Celgene is seen by experts as a smart move as the deal will add Pharmion's Vidaza, a myelodysplastic syndrome remedy, which has a potential to be a billion-dollar product to Celgene's arsenal. Pharmion distributes Celgene's thalidomide in Europe under the brand name Thalomid. The deal is also expected to bolster Celgene's strategy to become a global leader in the hematology/oncology field.
Last week, Celgene's arch nemesis Millennium Pharmaceuticals, Inc. (MLNM | news | PowerRating | PR Charts ) said it is on track to exceed its fiscal year 2007 earnings outlook announced in November, last year. Millennium had expected to report GAAP net loss in a range of $30 - $35 million and non-GAAP net income in a range of $40 - $45 million for 2007.
For 2008, Millennium Pharma expects GAAP net income to range between $10 million and $25 million and non-GAAP net income in a range of $80 - $95 million.
Velcade, approved to treat the relapsed form of multiple myeloma, which competes with Celgene's Revlimid, is anticipated to garner sales of $320 million - $345 million in 2008. Millennium Pharma is expected to report its 2007 financial results on Feb. 7.
CELG is currently up 3.97% or $1.97 trading at $51.61 on a volume of 4.05 million shares.
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