Troubled pharma company Celgene (CELG) posted Q2 results beating analysts’ view and also lifted its earnings outlook for 2018. Shares of Celgene rose about 2% before the bell and continued the positive momentum when the market opened today. Celgene’s total revenue grew 17% year-over-year to $3.81 billion on strong Revlimid sales growth of 21%.
GAAP earnings dropped to $1.05 billion or $1.43 per share from $1.1 billion or $1.36 per share in the year-ago quarter. Adjusted EPS grew 16% to $2.16.
Looking ahead into 2018, the Summit, NJ-based company lifted its revenue and adjusted EPS outlook on strong product sales. Revenue for fiscal 2018 is expected to be around $15 billion versus the prior estimate of about $14.8 billion, and adjusted EPS is expected to fall in the range of $8.70-8.75 compared to the previous guidance of about $8.45. GAAP EPS outlook was cut down to a range of $5.95-6.25 versus the prior target of about $6.31.
Related: Celgene gets a booster shot from recent clinical trials
The pharma sector was already hurt by President Trump’s comments on increasing drug prices. Like its peers Pfizer (PFE) and Novartis (NVS), Celgene said that it will not increase the prices of its products further in this year.
Adding to the woes, FDA had earlier accused Celgene and other pharma companies that these companies take advantage of specific rules and laws and use them to extend their monopoly beyond a limit.
Related: Celgene plunges to a new 52-week low
Celgene’s rivals Allergan (AGN) and Alexion Pharmaceuticals (ALXN) also reported their quarterly results today. While Allergan was trading flat, Alexion was up 1% in the first hour of morning trading session. Shares of Celgene, which plunged to a new 52-week low ($74.13) on May 21, were up about 0.6% at $87.67 during Wednesday’s trading session. The stock has plunged about 16% so far in this year and about 36% in the past 52-weeks.
Related Infographics: Q1 earnings
