Celgene’s Revenues Rose ~18% in the Third Quarter

Revenue trends

On October 25, Celgene reported its third-quarter financial results. Celgene (CELG) reported revenues of $3.9 billion in the third quarter, an ~18% increase YoY. Celgene’s net revenues totaled $11.2 billion in the first nine months of this year compared to $9.5 billion in the same period last year, which reflected ~18% YoY growth.

Celgene’s Revenues Rose ~18% in the Third Quarter

Revlimid, Pomalyst, and Otezla primarily pushed the revenue growth of Celgene in the third quarter. During the quarter, Revlimid, Pomalyst, and Otezla saw ~17.7%, ~23.0%, and ~40.3% YoY growth, respectively. Vidaza and Thalomid generated revenues of $139.0 million and $30.0 million, respectively, reflecting ~7.9% and ~11.8% YoY declines.

Novartis (NVS) and Merck (MRK), Celgene’s peers in the biopharmaceuticals market, reported revenues of $12.8 billion and $10.8 billion, respectively, in the third quarter, reflecting ~2.95% and ~4.54% YoY growth. Celgene’s revenue growth could boost the iShares Nasdaq Biotechnology ETF (IBB). Celgene makes up about ~7.13% of IBB’s total portfolio holding.

Expense trends

Celgene reported cost of goods sold (excluding amortization of acquired intangible assets) of $157.0 million in the third quarter compared to $118.0 million in the third quarter of 2017, reflecting 33% YoY growth. Celgene’s net cost of goods sold (excluding amortization of acquired intangible assets) amounted to $418.0 million over the first nine months of 2018 compared to $342.0 million in the same period the prior year.

In the third quarter, Celgene reported R&D (research & development) and SG&A (selling, general, and administrative) expenses of $1.1 billion and $746.0 million, respectively, compared to $1.3 billion and $608.0 million in the third quarter of 2017. Celgene’s R&D and SG&A expenditure totaled $4.5 billion and $2.4 billion, respectively, in the first nine months of this year, reflecting ~43% YoY growth and a ~24% YoY decline.