Celgene Corp. (CELG) swung to a profit in the fourth quarter from a loss last year, helped by lower research and development costs as well as a decline in acquisition-related charges and restructuring. A drop in income tax provision also contributed to the bottom line growth. The results exceeded analysts’ expectations. The pharma giant also guided full-year 2019 earnings and revenue above consensus estimates.
Net income was $1.07 billion or $1.50 per share compared to a loss of $81 million or $0.10 per share in the previous year quarter. Adjusted earnings grew 20% to $2.39.
Total revenue increased 16% to $4.04 billion. The results were benefited by increases in treatment duration and market share for multiple myeloma.
Looking ahead into the full year 2019, the company expects total revenue in the range of $17 billion to $17.2 billion and earnings in the range of $8.40 to $9.08 per share. Adjusted earnings are anticipated to be in the range of $10.60 to $10.80 per share.
The company expects Revlimid product sales to be about $10.8 billion, Pomalyst/Imnovid product sales of about $2.4 billion, Otezla product sales of about $1.9 billion, and Abraxane product sales of about $1.1 billion. Operating margin is predicted to be about 49% and adjusted operating margin is projected to be about 57.5%.
For the fourth quarter, Revlimid sales increased 16% driven by increases in treatment duration and market share. Pomalyst/Imnovid sales jumped 28% on higher treatment duration and market share. Otezla sales climbed 21% on increases in demand as well as launch uptake in key ex-US markets, including Japan. Abraxane sales rose 7% driven primarily by demand.
Also read: Transcript of Celgene fourth quarter 2018 earnings call
In January, Celgene and Bristol-Myers Squibb (BMY) have entered into a definitive merger agreement whereby Bristol-Myers will acquire Celgene for about $74 billion. The transaction is expected to close in the third quarter of 2019.
Shares of Celgene ended Wednesday’s regular session up 0.58% at $88.06 on the Nasdaq. Following the earnings release, the stock inched up 0.36% in the premarket session.
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