Celgene takes M&A-related hit and posts Q3 loss, but optimistic about full year
- Despite an improved outlook for full-year earnings, Celgene posted a $34.1 million loss in the third quarter, compared with profits of $508.5 million in Q3 2014. Much of that loss was related to the recent $1 billion 10-year collaboration deal that Celgene initiated with Juno Therapeutics, as well as the purchase of Receptos for $7.2 billion.
- Celgene's blood cancer drug, Revlimid, continued to perform well, bringing in 60% of all revenues. Gross revenues for Revlimid were $1.45 billion in the third quarter, a 12% increase from Q3 2014.
- However, Abraxane (for treatment of metastatic breast cancer) sales fell short of expectations, with a total of $230 million in revenues—an 8% increase.
All things considered, it was a pretty good quarter for Celgene. When the costs from the Juno and Receptos deals are excluded, EPS actually rose from 97 cents to $1.23, exceeding analysts' expectations by one cent.
However, sales, which were $2.31 billion for the quarter, were slightly lower than the $2.4 billion projected by analysts. In addition to Revlimid and Abraxane, Celgene had revenue contributions from Pomalyst (for multiple myeloma) and Otezla (for arthritis).
The stock was off a little more than 5% on the news on Thursday, but has risen overall this year.