(Adds company comment from presentation; analyst comment,
By Bill Berkrot
Jan 9 Celgene Corp on Monday raised its
2017 revenue and profit forecasts on the strength of its
flagship Revlimid multiple myeloma drug and increased
expectations for other treatments for cancer and psoriasis.
The U.S. biotech company reiterated its 2020 forecast for
sales exceeding $21 billion as Chief Executive Officer Mark
Alles kicked off the annual JP Morgan Healthcare Conference in
Following the official presentation, Chief Operating Officer
Jackie Fouse said the 2020 forecast was largely based on
increasing sales of its existing product portfolio.
Positive data from the experimental multiple sclerosis drug
ozonimod could lead to a revision of 2020 revenue targets, she
said. The company has 10 products in development with
billion-dollar potential, four of them multibillion-dollar
opportunities, Fouse said.
Celgene expects to file for approval of ozonimod by
The company forecast 2017 earnings of $7.10 to $7.75 per
share before special items, up from its prior view of $6.75 to
$7.00. It raised its revenue outlook to a range of $13 billion
to $13.4 billion from $12.7 billion to $13 billion.
Analysts on average were expecting a 2017 profit of $7.04
per share and revenue of $13.2 billion.
Investors were not thrilled, possibly because of the
conservative long-term outlook or an updated 2016 revenue
estimate slightly below Wall Street expectations. Celgene shares
fell more than 1 percent before trimming losses.
"Celgene is trading down modestly as expectations were high
going in," Evercore ISI analyst John Scotti said in a research
note, even though the "2017 EPS guide was slightly above the
Street" and revenue was in line with expectations.
For 2016, Celgene said it expected product sales of about
$11.2 billion and earnings of about $5.94 per share, excluding
items. Analysts on average forecast a profit of $5.92 and
revenue of $11.29 billion, according to Thomson Reuters I/B/E/S.
The company sees 2017 Revlimid sales of $8 billion to $8.2
Alles highlighted the company's pipeline opportunities and
various partnerships, saying it expected data from 19 late-stage
trials through 2018.
"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," Alles said.
The company said it could significantly expand its Abraxane
franchise for solid tumor cancers, pointing to multiple lung
cancer trials in combination with new immuno-oncology drugs.
Alles said he believed Abraxane could eventually help cure
certain subsets of early-stage pancreatic cancer. "This would be
groundbreaking," he said.
(Reporting by Bill Berkrot; additional reporting by Deena
Beasley in San Francisco and Akankshita Mukhopadhyay in
Bengaluru; Editing by Lisa Von Ahn)