Celgene raises profit, revenue forecasts for 2017

Celgene on Monday announced that it was boosting its full-year profit forecast to the range of $7.10 per share to $7.25 per share, up from prior guidance of $6.75 per share to $7.00 per share and ahead of analyst estimates of $7.04 per share. The drugmaker also raised its revenue projection for 2017 from a previous range of $12.7 billion to $13 billion to a range of $13 billion to $13.4 billion. Analysts estimate $13.2 billion. 

CEO Mark Alles remarked "in 2016, we made exceptional progress strengthening and growing our franchises while accelerating and adding to our robust pipeline; our significant business momentum supports raising our 2017 guidance." The executive continued "we are entering a pivotal two-year period with multiple catalysts increasing our confidence in our ability to achieve or exceed our 2020 targets and sustain our growth from 2020 to 2030." 

Regarding specific products, Celgene however indicated that for 2017, sales of Revlimid are expected to grow by about 17 percent year-over-year to a range of $8 billion to $8.3 billion. Meanwhile, in preliminary results also released Monday, the drugmaker said that sales of the cancer drug have grown by 20 percent last year to approximately $7 billion. 

Regarding other drugs, revenue from Pomalyst/Imnovid is forecast to jump by about 22 percent in 2017 to $1.6 billion, with sales of Otezla climbing 57 percent versus the prior year to a range of $1.5 billion to $1.7 billion. Sales of Abraxane are anticipated to reach $1 billion, up 3 percent over 2016. 

Celgene suggested that it could greatly expand the use of Abraxane for the treatment of solid tumour based on multiple lung cancer trials assessing the therapy in combination with immuno-oncology drugs. Alles predicted that Abraxane could also be used in the treatment of certain patients with early-stage pancreatic cancer, adding "this would be ground-breaking." 

Commenting on the news, Evercore ISI analyst John Scotti remarked "Celgene is trading down modestly as expectations were high going in."