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Celgene Corp. Reports Operating Results (10-Q)

August 04, 2010 | About:
10qk

10qk

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Celgene Corp. (CELG) filed Quarterly Report for the period ended 2010-06-30.

Celgene Corp. has a market cap of $25.93 billion; its shares were traded at around $56.26 with a P/E ratio of 25.4 and P/S ratio of 9.7. CELG is in the portfolios of Stanley Druckenmiller of Duquesne Capital Management, LLC, Paul Tudor Jones of The Tudor Group, RS Investment Management, Steven Cohen of SAC Capital Advisors, Kenneth Fisher of Fisher Asset Management, LLC, Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

A preliminary estimate of the total consideration related to the acquisition of Abraxis is $3.2 billion, including cash payments of $2.4 billion, shares of Celgene Common Stock of $540.0 million and the issuance of CVRs valued at $300.0 million. We do not require financing for the proposed merger with Abraxis. However, we are considering and may pursue financing arrangements on terms and conditions favorable to us, including, without limitation, an offering of debt securities, to maintain financial flexibility.

THALOMID® net sales decreased by $7.4 million to $97.8 million for the three-month period ended June 30, 2010 compared to the three-month period ended June 30, 2009. The decrease was primarily due to lower unit volumes in the United States, partly offset by a net decrease in sales adjustments.

Total net product sales for the three-month period ended June 30, 2010 increased by $224.9 million, or 37.6%, to $823.1 million compared to the three-month period ended June 30, 2009. The change was comprised of net volume increases of $214.1 million, price decreases of $2.9 million primarily resulting from increases in Medicaid rebates and the favorable impact from foreign exchange of $13.7 million.

Collaborative Agreements and Other Revenue: Revenues from collaborative agreements and other sources increased by $0.2 million to $2.5 million for the three-month period ended June 30, 2010 compared to the three-month period ended June 30, 2009. Revenues for both three-month periods included the sales of services through our Cellular Therapeutics subsidiary and income from miscellaneous licensing agreements.

Cost of Goods Sold (excluding amortization of acquired intangible assets)): Cost of goods sold (excluding amortization of acquired intangible assets) increased by $17.1 million to $68.0 million for the three-month period ended June 30, 2010 compared to the three-month period ended June 30, 2009, primarily due to an overall higher sales level, including an increase in sales of VIDAZA®, which carries a higher cost than our other primary products. As a percent of net product sales, cost of goods sold (excluding amortization expense) decreased to 8.3% in the 2010 three-month period from 8.5% in the 2009 three-month period, primarily due to increased sales of REVLIMID®, which more than offset the negative impact from increased sales of VIDAZA®.

Research and Development: Research and development expenses increased by $124.3 million for the three-month period ended June 30, 2010 compared to the three-month period ended June 30, 2009, primarily due to a $121.2 million upfront payment in May 2010 to Agios Pharmaceuticals Inc., or Agios, related to a research and development collaboration arrangement, representing an increase of $86.7 million from the $34.5 million in upfront payments made during the three-month period ended June 30, 2009. In addition, spending increased in support of multiple programs across a broad range of diseases.

Read the The complete Report

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