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What Are the Key Growth Drivers for Celgene in 2019?

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Growth drivers for Celgene

On its fourth-quarter earnings conference call, Celgene (CELG) stated that its proposed combination with Bristol-Myers Squibb (BMY), which is expected to complete by the third quarter of 2019, could unlock significant value for its shareholders.

On a stand-alone basis, the company is projecting FDA approvals for five of its late-stage pipeline products by the end of 2020. The company has maintained its track record of rapidly advancing its R&D (research and development) pipeline by announcing positive results in 11 of its Phase 3 trials in 2018.

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Projections for 2019

During its fourth-quarter earnings press release, Celgene guided for Revlimid net product sales of $10.8 billion, a YoY (year-over-year) rise of 12%, and Pomalyst/Imnovid sales of $2.4 billion, a YoY rise of 18%, in 2019. In 2018, Revlimid reported global sales of $9.68 billion, a YoY rise of 18%, while Pomalyst reported global sales of $2.04 billion, a YoY rise of 26%.

According to the company’s fourth-quarter earnings press release, both Revlimid and Pomalyst have been benefiting from solid demand across geographies. Celgene also expects the label expansions of these brands to further boost their revenues in 2019.

According to the company’s fourth-quarter earnings press release, Revlimid has reported growth in its market share and an increase in the duration of therapy in US markets driven by its uptake as a maintenance therapy for MM (multiple myeloma) patients after an autologous hematopoietic stem cell transplant and as a first-line MM therapy for patients who aren’t eligible for a stem cell transplant. Demand in these indications has also driven Revlimid’s uptake in ex-US markets. Revlimid has also reported a rise in the duration of therapy due to the increasing adoption of Revlimid-based triplet regimens for various hematology-oncology indications.

In its fourth-quarter earnings press release, Celgene guided for Otezla net product sales of $1.9 billion, a YoY rise of 18%, in 2019. The drug reported global sales of $1.61 billion, a YoY rise of 26%, in 2018.

Next, we’ll discuss dividends, interest expenses, and debt projections for AbbVie and Celgene in 2019.

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