Celgene’s net income for the 2018’s first quarter amounted to $846 million and this was lower than the $932 million which was reported in 2017’s first quarter. Operating income, on the other hand, reached a figure of $218 million and this was lower than the figure of $1.11 billion recorded during the same period a year ago.
The revenue of Celgene Corporation for Q1 was $3.54 billion compared to a figure of $2.96 billion which was recorded last year during a similar quarter. This was, however, lower than the estimates as analysts had been expecting revenues of approximately $3.46 billion.
Adjusted net income
Adjusted net income for Celgene Corporation came in at $1.58 billion and this was a rise of 16% compared to a similar period last year. On the other hand adjusted earnings per share for the first quarter increased by 23% year-over-year.
Some of the products which performed exceptionally well included Otezla, Imnovid/Pomalyst and Revlimid as sales rose significantly compared to the figures that were recorded in 2017’s first quarter. These three products had the largest impact on the rise in the figure for total net product sales. Other products in the portfolio of Celgene Corporation include Thalomid, Thalidomide, Vidaza, Istodax and Abraxane.
Adjusted R&D expenses
With regards to costs, the adjusted research and development expenses came in at $694 million in the first quarter. This was higher than the figure of $595 million which was recorded in a similar quarter a year ago. The figure of adjusted SG&A expenses, on the other hand, was $671 million compared to $539 million which was recorded in the first quarter of last year.
According to the chairman and chief executive officer of Celgene Corporation, Mark Alles, the strong results in the first quarter contributed to an improvement in the guidance for the year. In a previous guidance, the acquisition of Juno Therapeutics was not included and is thus expected to have a dilutive effect on the adjusted diluted earnings per share of Celgene Corporation.
While the expected revenue had been estimated to fall between $14.4 billion and $14.8 billion the new guidance expects that figure to be $14.8 billion for the full year. The previous guidance for adjusted diluted earnings per share was between $8.70 and $8.90 but with the acquisition of Juno Therapeutics, it is now expected to come in at $8.45.
In the last couple of months, a couple of setbacks have fallen on Celgene Corporation. This includes the fact that candidate in a late-stage study on a lead cancer drug did not succeed. Due to the threat posed by generic products especially with regards to Revlimid Celgene Corporation has been forced to be on the hunt for acquisitions. This is part of the reason Celgene acquired Juno Therapeutics at a price of $9 billion.