Celgene Beats Zacks Estimate - Analyst Blog

This morning, Celgene Corp. (CELG) reported fourth quarter and full year results for fiscal 2009.
 
Quarterly Results
 
The company earned 62 cents per share in the fourth quarter as opposed to 43 cents in the year-ago quarter. The Zacks Consensus Estimate for the quarter was 57 cents.

Total revenues for the reported quarter came in at $761 million, an increase of 21.2% over the same period in 2008. The rise in total revenues was driven by worldwide market share gains, increased duration of therapy of the company’s lead drug Revlimid, currently approved for Myelodysplastic Syndromes (MDS) and second-line Multiple Myeloma (MM), and reimbursement approvals.  Revlimid net sales came in at $497.1 million, which reflected an increase of 35 % over the year-ago period.

Net sales of Thalomid, also approved for multiple myeloma, were $107.7 million. Vidaza net sales for the quarter came in at $116.7 million, an increase of 68% over the fourth quarter of 2008.

Research and development (R&D) spend fell to $201.7 million from $486.6 million in the year-ago quarter. Selling, general and administrative expenses in the quarter increased 5.7% to $211.6 million.
 
The company had a strong balance sheet. As of Dec 31, 2009, Celgene held $2.997 billion in cash, cash equivalents and marketable securities.
 
Yearly Results
 
For the full year 2009, Celgene earned $2.08 which was above the year-ago earnings of $1.56 and the Zacks Consensus Estimate of $1.87. Total revenues for fiscal 2009 came in at $ $2.69 billion, an increase of 19.3% over fiscal 2008.
 
Net sales of Revlimid for 2009 climbed to $1.706 billion as against $1.325 billion in 2008. Global net sales of Thalomid and Vidaza for fiscal 2009 came in at $436.9 million and $387.2 million, respectively.
  
Outlook Backed
 
Celgene re-affirmed its guidance for fiscal 2010. For the year 2010, the company anticipates to earn between $2.55 and $2.60 per share, up approximately 25% year over year. The Zacks Consensus Estimate for 2010 is $2.40 per share. The company forecasts total revenues for 2010 to rise by approximately 20% year over year to a range of $3.2 billion to $3.3 billion. Net Sales of Revlimid in 2010 are expected between $2.1 billion to $2.2 billion, up approximately 25%.
 
Currently, we are Neutral on Celgene.

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