Celgene Corporation (NASDAQ:CELG) plans to release its third quarter financial results on Oct.24 and will host a conference call and live audio webcast on the same day at 9 a.m. ET to discuss the financial and operational performance.
The Summit, New Jersey-based biotech firm currently markets Revlimid and Thalomid for the treatment of various forms of multiple myeloma, and Vidaza for the treatment of myelodysplastic syndromes. The company also has other key products in the form of Abraxane and Pomalyst.
Wall Street expects Celgene to earn $1.54 a share, according to analysts polled by Thomson Reuters. The consensus estimate implies 19.4 percent growth from last year when CELG earned $1.29 a share.
Celgene earnings have topped the Street view in all of the past four quarters, with upside surprise ranging between 0.89 and 5.6 percent. The consensus estimate gained by 6 cents over the past 90 days, an indication of a bullish trend. In the past 30 days, six analysts have increased their earnings estimate.
Quarterly sales are estimated to grow 15.2 percent to $1.64 billion from $1.42 billion a year-ago. The company has reported double-digit revenue increases for the past four quarters, with an average growth of 13.7 percent.
Revlimid remains the key top line driver with estimated sales of $5.9 billion to $6.1 billion of $10 billion in hematology/oncology revenues forecast for 2017. Obviously, Revlimid sales should be the key focus of the print. Revlimid sales were $1.05 billion for the second quarter, a 13 percent rise from last year.
During the quarter, the company suffered a blow when it discontinued a Revlimid study in previously untreated elderly patients with B-Cell Chronic Lymphocytic Leukemia. However, the drug met its primary endpoint in a late stage study in newly-diagnosed multiple myeloma.
Pomalyst, which was approved earlier in the year for multiple myeloma, is also turning out be a significant contributor to sales. The drug performed remarkably we! ll in the preceding quarter, and investors could be hoping that Pomalyst repeats its positive sales momentum in the third quarter.
Abraxane, a treatment for pancreatic cancer, is another product on which Celgene is betting big. Abraxane's supplementary new drug application for pancreatic cancer was approved by the FDA last month. Investors would focus on the regulatory strategy for Abraxane, whose second quarter sales rose 41 percent to $155 million.
Abraxane could be a potential $1.5 billion to $2 billion cornerstone therapy in solid tumors with label expansion from metastatic breast cancer to non-small-cell lung cancer (NSCLC), and melanoma expected and in combination with novel epigenetic priming agents.
Separately, the company still plans on interim overall survival analysis for abraxane in melanoma. They have also initiated Phase II combination of Abraxane + Ipilumumab in metastatic melanoma. Celgene is also pursuing Abraxane in Phase III triple-negative breast cancer (TNBC) in patients with 1st line breast cancer. Any updates on the drug and these trials would be keenly watched.
Further, investors might look for updates on Apremilast, which is being developed for psoriasis & psoriatic arthritis and is considered the next big bet after Revlimid. Apremilast product for psoriatic arthritis is targeting markets totaling about 7 million patients in the US and EU across multiple indications.
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On the flip side, the company could report lower sales for Thalomid and Vidaza. Particularly, sales of Vidaza should go down due to generic competition. In September, the FDA has approved Dr Reddy's generic version of Celgene's Vidaza, more than 2 years after the 2011 patent expiration.
In addition, the market may look for any update on 2013's outlook. The company sees adjusted earnings of $5.80 to $5.90 and GAAP EPS of $4.17 to $4.31. Sales ar! e expecte! d to be approximately $6.20 billion. Analysts expect the company to report fiscal 2013 profit per share of $5.98 on revenue of $6.37 billion.
For the second quarter, Celgene reported net income of $478 million or $1.11 a share, compared to $367 million or 82 cents a share, last year. Adjusted net income was $1.52 a share. Second quarter total revenue was $1.60 billion, compared to $1.37 billion the prior year.
Shares of Celgene rose 14 percent since the last quarterly report. The stock, which trades 22 times its consensus 2014 earnings estimate, traded between $71.23 and $161.64 during the past 52-weeks. CELG shares have gained about 100 percent this year.
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