Celgene 3Q profit climbs 14 pct on higher sales
SUMMIT, N.J. -- Biotech drugmaker Celgene Corp. on Thursday reported a 13.7 percent jump in third-quarter profit as higher sales of its key drug offset declines for a couple other medicines and increased spending on research and marketing.
The company, based in Summit, N.J., narrowly beat Wall Street expectations and raised its 2012 adjusted profit forecast by a nickel per share, to a range of $4.85 to $4.90.
Celgene said net income was $424.2 million, or 97 cents per share, up from $373 million, or 81 cents per share, in 2011's third quarter.
Excluding research and development costs, a gain from an income tax adjustment and other one-time items, adjusted net income was $561.3 million, or $1.29 per share. Analysts surveyed by FactSet were expecting $1.27 a share.
Total revenue climbed 13.6 percent, to $1.42 billion. That just beat expectations for $1.4 billion.
Sales were led by Revlimid, which treats severe anemia and a bone marrow cancer called multiple myeloma. Its sales climbed 18 percent to $970 million due to increased market share and longer duration of therapy. Sales jumped 15 percent to $220 million for Vidaza, for certain subtypes of myelodysplastic syndrome, a group of bone marrow disorders in which the body does not produce enough new blood cells.
Meanwhile, sales dipped 6 percent to $106 million for advanced breast cancer drug Abraxane and fell 10 percent to $75 million for Thalomid, also for multiple myeloma.
Celgene narrowed the range of its revenue forecast for the full year, and now expects $5.45 million to $5.55 million.
"We generated excellent financial results and advanced major initiatives across our businesses that will serve as the foundation for future growth," CEO Bob Hugin said in a statement.
The company noted it is conducting more than 25 late-stage patient studies, for potential new uses for three of its four existing drugs, as well as for two experimental drugs. It also has about 10 experimental compounds in earlier stages of testing.
Celgene shares were up 37 cents at $74.43 in afternoon trading.