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Celgene Reported Robust Revenue Growth in 4Q16

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Jan. 30 2017, Published 12:54 p.m. ET

Robust revenue growth

Celgene (CELG) posted its 4Q16 earnings and 2016 operating results on January 26, 2017. The company has reported net product sales for 2016 of ~$11.2 billion, which represents YoY (year-over-year) rise of around 22%. Celgene also declared its GAAP (generally accepted accounting principles) diluted EPS (earnings per share) for 2016 to be around $2.49, which is 28.4% higher on YoY basis.

Celgene reported total revenues of $2.9 billion in 4Q16, which represents a YoY growth of about 16.3%. The company’s GAAP net income in 4Q16 was $429 million, which was 23.7% lower on YoY basis. This was attributed to higher R&D (research and development) expenses due to the acquisition of Acetylon Pharmaceuticals, which Celgene completed in 4Q16. The company also had to bear the negative net income impact of fair value adjustment for equity investments completed in 4Q16.

For 4Q16, peers Biogen (BIIB), Bristol-Myers Squibb (BMY), and Johnson & Johnson (JNJ) reported revenues worth $2.9 billion, $5.2 billion, and $18.1 billion, respectively.

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Research programs

Celgene currently offers its products to more than 500,000 patients around the world. The company is also involved in more than 180 clinical trials. These research programs aim to strengthen Celgene’s position in areas like hematology, oncology, immunology, and inflammation.

By 2018, Celgene expects to release data from 19 ongoing clinical trials, and the company is preparing to advance nine investigational drugs in pivotal trials. The company also expects to analyze additional 14 novel agents in the next two years.

Notably, the Vanguard Total Stock Market ETF (VTI) has ~0.39% of its total portfolio in Celgene.

In the next part of this series, we’ll discuss the details of Celgene’s 4Q16 performance.

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