Celgene Corporation (NASDAQ: CELG) stock crashed over 18.9% today (as of October 26th, 2017; Source: Google finance) as the group slashed their 2020 revenue targets, on the back of a slowdown for their major medicines. The group’s drug-trial failure also led to the weak guidance.
The group expects their Total Hematology sales to be in the range of $15.4 billion to $16.1 billion by 2020 while Total Oncology sales would be in the range of $1.0 billion to $1.1 billion. The group forecasts their Total I&I to be in the range of $2.6 billion to $2.8B as compared to their earlier guidance of > $4.0B billion. As a result the Total Net Product Sales would be in the range of $19.0 billion to $20.0 billion as compared to the group’s earlier target of > $21.0B. Adjusted Diluted EPS is forecasted to be ˃ $12.50 by 2020 against their earlier forecast of > $13.00
Celgene Corporation delivered a net product sales rise of 11% yoy to $3,283 million for the third quarter of 2017, while overall revenue rose 10% yoy to $3,287 million. REVLIMID® sales enhanced 10% yoy to $2,081 million driven by better volume, as a result of increases in duration and market share. POMALYST®/IMNOVID® sales surged 22% yoy during the period while OTEZLA® sales enhanced 12% on a yoy basis. But OTEZLA® sales in the U.S. were hurt by rise in gross-to-net adjustments from contracts implemented in January as well as slowing in overall category growth hurt by tough market access environment.
U.S. GAAP net income reached $988 million for the third quarter of 2017 while diluted earnings per share (EPS) reached $1.21 during the third quarter of 2017. Adjusted net income rose 23% yoy to $1,555 million while adjusted diluted EPS enhanced 21% yoy to $1.91.
The group improved their operating cash flow to $1.1 billion during the third quarter of 2017, from $770 million in prior corresponding period. They bought over 0.9 million of their shares at a total cost of over $114 million during the quarter. The Company had over $3.8 billion remaining under its stock repurchase program as of September 30, 2017. The group has over $11.8 billion in cash, cash equivalents and marketable securities by the end of the quarter.