GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Celgene Corp. Reports Operating Results (10-Q)

October 29, 2012 | About:
10qk

10qk

18 followers
Celgene Corp. (CELG) filed Quarterly Report for the period ended 2012-09-30.

Celgene Corporation has a market cap of $32.44 billion; its shares were traded at around $75.2 with a P/E ratio of 17.7 and P/S ratio of 6.7.

Highlight of Business Operations:

Total revenue increased by $169.5 million, or 13.6%, to $1.419 billion for the three-month period ended September 30, 2012 compared to the three-month period ended September 30, 2011, reflecting increases of $75.3 million, or 10.4%, in the United States, and $94.2 million, or 18.0%, in international markets.

Total net product sales for the three-month period ended September 30, 2012 increased by $168.9 million, or 13.9%, to $1.388 billion compared to the three-month period ended September 30, 2011. The increase was comprised of net volume increases of $123.3 million, price increases of $67.8 million and the unfavorable impact from foreign exchange of $22.2 million. The increase in price was primarily due to price increases on REVLIMID® and VIDAZA® in the U.S. market, partly offset by reductions in other markets, mainly in Europe.

Cost of goods sold (excluding amortization of acquired intangible assets): Cost of goods sold (excluding amortization of acquired intangible assets) decreased by $20.0 million to $74.6 million for the three-month period ended September 30, 2012 compared to the three-month period ended September 30, 2011. The decrease was partly due to a $2.9 million decrease in royalties related to a certain product to be divested. In addition, the three-month period ended September 30, 2011 included a $6.9 million inventory step-up amortization adjustment related to sales of ABRAXANE® and approximately $6.0 million in charges related to a certain manufacturing agreement and a product specific inventory adjustment not repeated in the 2012 quarter. These items were partly offset by an increase in 2012 material costs resulting from a higher level of sales activity. As a percent of net product sales, cost of goods sold (excluding amortization of acquired intangible assets) decreased to 5.4% in the three-month period ended September 30, 2012 compared to 7.8% for the three-month period ended September 30, 2011. Excluding the inventory step-up amortization for ABRAXANE®, the cost of goods sold ratio for the three-month period ended September 30, 2011 was 7.2%. The cost of goods sold ratio for 2012 was also favorably impacted by product mix, as lower cost products made up a larger portion of total net sales.

Total revenue increased by $501.1 million, or 14.1%, to $4.059 billion for the nine-month period ended September 30, 2012 compared to the nine-month period ended September 30, 2011, reflecting increases of $239.3 million, or 11.4%, in the United States, and $261.8 million, or 17.9%, in international markets.

Cost of goods sold (excluding amortization of acquired intangible assets): Cost of goods sold (excluding amortization of acquired intangible assets) decreased by $129.4 million to $219.0 million for the nine-month period ended September 30, 2012 compared to the nine-month period ended September 30, 2011. The decrease was primarily due to the 2011 nine-month period inclusion of a $90.3 million inventory step-up amortization adjustment related to sales of ABRAXANE®, an aggregate $13.2 million in costs related to the sale of non-core Abraxis products which were divested in April 2011 and a $14.8 million higher allocation of prepaid royalties related to sales of VIDAZA®. These items were partly offset by an increase in 2012 material costs resulting from a higher level of sales activity. As a percent of net product sales, cost of goods sold (excluding amortization of acquired intangible assets) decreased to 5.5% in the nine-month period ended September 30, 2012 compared to 10.1% for the nine-month period ended September 30, 2011. Excluding the inventory step-up amortization for ABRAXANE®, the cost of goods sold ratio for the nine-month period ended September 30, 2011 was 7.5%. The cost of goods sold ratio for the nine-month period ended September 30, 2012 was favorably impacted by 0.4% from a reduction in royalties due to the expiration of U.S. patents for VIDAZA® and lower cost products comprising a larger portion of total net sales.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 3.0/5 (2 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK