The Summit, New Jersey-based biotech giant released its Q4 2018 earnings report weeks after Bristol-Myers Squibb announced a $74 billion deal to buy the company.
The cancer drug manufacturer achieved quarterly net product sales and total revenues that were both slightly north of $4 billion, according to its Q4 2018 earnings report released Thursday morning.
Celgene's year-end financials show the Summit, New Jersey-based biotech giant is in a strong position as it joins Bristol-Myers Squibb as part of a $74 billion deal announced earlier this month.
Celgene posted an adjusted net income of $1.7 billion in Q4, a 7% increase compared to Q4 2017, while its adjusted earnings per share (EPS) rose 20% to $2.39 per share.
For the full year, the company produced more than $15 billion in both net product sales and total revenues, which were 18% increases compared to 2017.
“2018 was another year of excellent operating results and significant progress advancing our innovative early-, mid- and late-stage pipeline,” Mark J. Alles, CEO of Celgene, said in a statement. “With five near-term product launches and many promising assets advancing, we are very optimistic about our potential for long-term growth as part of the new Bristol-Myers Squibb.”
While some have been skeptical of the $74 billion acquisition, an article in the Motley Fool this week stated one of the primary reasons the deal could be successful is that Bristol-Myers Squibb expects growth to slow in 2019, which makes the acquisition of Celgene a strategic move to bolster its pipeline.
Celgene's 2019 financial guidance includes total revenue projections between $17 to $17.2 billion, and an adjusted EPS of between $10.60 and $10.80 per share.
A factor that could affect Celgene's goals for 2019 is increased federal scrutiny in the form of a Government Accountability Office report in December indicating the company's Revlimid chemotherapy drug was the top-selling orphan drug in 2017 and being subject to a wide-ranging drug-pricing probe launched by House Democrats earlier this month.
ADDITIONAL Celgene Q4 EARNINGS REPORT HIGHLIGHTS:
- Celgene's full-year adjusted net income was $6.5 billion, an 8% increase year-over-year.
- Revlimid sales increased by 16% to $2.5 billion in Q4, driven by "increases in treatment duration and market share."
- The company's year-end operating cash flow stayed even at $5.2 billion.
For complete financial information, review Celgene Corp.'s filing with the Securities and Exchange Commission.
Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.
Photo credit: Celgene Logo on a PC Monitor in a Coworking Place in Milan,Italy-September 2018 - Image / Editorial credit: Eyesonmilan / Shutterstock.com
Celgene had a quality performance in 2018 as it prepares to become part of Bristol-Myers Squibb in a $74 billion acquisition.
For the full year, Celgene produced more than $15 billion in both net product sales and total revenues.
Bristol-Myers Squibb eyed the Celgene acquisition as a way to counter expectations of slowing growth.