Celgene Corporation
Jan 10, 2011
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Celgene Corporation Reviews 2010 Achievements and Announces 2011 Financial Outlook

Record Results Driven By Gains in Market Share and Duration of Therapy, Geographic Expansion and Reimbursement Approvals

Non-GAAP Total Revenue Increased Approximately 34 Percent Y/Y

Non-GAAP Diluted Earnings Per Share Increased Nearly 35 Percent Y/Y

Board of Directors Authorized the Repurchase of Up to An Additional $500 Million of the Company's Common Stock

SUMMIT, N.J., Jan 10, 2011 (BUSINESS WIRE) --

Celgene Corporation (NASDAQ: CELG):

2010 Fourth Quarter Financial Results Year-Over-Year (Unaudited)

2010 Full Year Financial Results Year-Over-Year (Unaudited)

Celgene Forecasts Continued Revenue and Earnings Growth in 2011

2010 Milestones and Accomplishments

Hematology

Oncology

Inflammation and Immunology

Celgene Corporation (NASDAQ: CELG) today reviewed 2010 achievements and provided an outlook for 2011 at the JPMorgan 29th Annual Healthcare Conference. Preliminary 2010 unaudited results indicate that non-GAAP total revenue will increase by approximately 34 percent to approximately $3.60 billion. Non-GAAP diluted earnings per share are expected to increase nearly 35 percent to approximately $2.80. The Company will report its 2010 full-year financial results on Thursday, January 27, 2011.

In 2011, non-GAAP total revenue is targeted to increase approximately 25 percent year-over-year to a range of $4.4 to $4.5 billion, and non-GAAP diluted earnings per share are targeted to increase approximately 20 percent to a range of $3.30 to $3.35.

Non-GAAP Financial Information

See the attached Reconciliation of projected GAAP to Non-GAAP total revenue and earnings per share for an explanation of the amounts excluded and included to arrive at non-GAAP total revenue and non-GAAP earnings per share amounts for the three-month and twelve-month periods ended December 31, 2010 and for the twelve-month period ending December 31, 2011. Non-GAAP financial measures provide investors and management with supplemental measures of operating performance and trends that facilitate comparisons between periods before and after certain items that would not otherwise be apparent on a GAAP basis. Certain unusual or non-recurring items that management does not believe affect the company's basic operations do not meet the GAAP definition of unusual or non-recurring items. Non-GAAP total revenue and non-GAAP earnings per share are not, and should not be viewed as a substitute for similar GAAP items. We define non-GAAP diluted earnings per share amounts as non-GAAP net income divided by the weighted average number of diluted shares outstanding. Our definition of non-GAAP total revenue and non-GAAP diluted earnings per share may differ from similarly named measures used by others.

Webcast Information

Celgene will host a conference call to discuss the results and achievements of its fourth quarter and full year 2010 operating and financial performance on January 27, 2011, at 9 a.m. ET. The conference call will be available by webcast at www.celgene.com. An audio replay of the call will be available from noon ET January 27, 2011, until midnight ET February 3, 2011. To access the replay, in the U.S. dial 800-642-1687; outside the U.S. dial 706-645-9291; and enter reservation number 35819129.

About Celgene

Celgene Corporation, headquartered in Summit, New Jersey, is an integrated global biopharmaceutical company engaged primarily in the discovery, development and commercialization of novel therapies for the treatment of cancer and inflammatory diseases through gene and protein regulation. For more information, please visit the company's Web site at www.celgene.com.

This release contains certain forward-looking statements which involve known and unknown risks, delays, uncertainties and other factors not under the Company's control. The Company's actual results, performance, or achievements could be materially different from those projected by these forward-looking statements.The factors that could cause actual results, performance, or achievements to differ from the forward-looking statements are discussed in the Company's filings with the Securities and Exchange Commission, such as the Company's Form 10-K, 10-Q and 8-K reports.Given these risks and uncertainties, you are cautioned not to place undue reliance on the forward-looking statements.

   
Celgene Corporation and Subsidiaries  
Reconciliation of Projected GAAP to Non-GAAP Total Revenue and Diluted Earnings Per Share  
(In thousands, except per share data)  
(Unaudited)  
               
               
      Three Months Ended  
      December 31, 2010  
      Range  
      Low     High  
               
Total Revenue - GAAP   $ 1,062,000     $ 1,066,000  
  Less sales of products to be divested   17,000     19,000  
Total Revenue - Non-GAAP   Approximately $1.05 Billion  
               
               
Projected diluted earnings per common share - GAAP   $ 0.40     $ 0.42  
               
  Per share impact of excluded items before tax:            
  Sales of products to be divested (1)

(0.04)

 

 

(0.04)

 

  Share-based compensation expense (2) 0.10     0.10  
  Amortization of acquired intangible assets (4) 0.15     0.14  
  Acquisition related charges (5) 0.10     0.09  
  Abraxis inventory step-up (6) 0.06     0.05  
  Change in value of Contingent Value Rights (7)

(0.03)

 

 

(0.03)

 

  Non-core activities (8) 0.08     0.08  
  Net income tax adjustments (9)

(0.09)

 

 

(0.08)

 

Projected diluted earnings per common share - non-GAAP   Approximately $0.73  
               
               
      Twelve Months Ended  
      December 31, 2010  
      Range  
      Low     High  
               
Total Revenue - GAAP   $ 3,616,000     $ 3,620,000  
  Less sales of products to be divested   23,000     25,000  
Total Revenue - Non-GAAP   Approximately $3.60 Billion  
               
               
Projected diluted earnings per common share - GAAP   $ 1.84     $ 1.86  
               
  Per share impact of excluded items before tax:            
  Sales of products to be divested (1)

(0.05)

 

 

(0.05)

 

  Share-based compensation expense (2) 0.38     0.38  
  Upfront collaboration payments (3) 0.26     0.26  
  Amortization of acquired intangible assets (4) 0.44     0.43  
  Acquisition related charges (5) 0.14     0.13  
  Abraxis inventory step-up (6) 0.06     0.05  
  Change in value of Contingent Value Rights (7)

(0.03)

 

 

(0.03)

 

  Non-core activities (8) 0.10     0.10  
  Net income tax adjustments (9)

(0.34)

 

 

(0.33)

 

Projected diluted earnings per common share - non-GAAP   Approximately $2.80  
               
Celgene Corporation and Subsidiaries  
Reconciliation of Projected GAAP to Non-GAAP Total Revenue and Diluted Earnings Per Share  
(In thousands, except per share data)  
(Unaudited)  
               
               
      Twelve Months Ending  
      December 31, 2011  
      Range  
      Low     High  
               
Total Revenue - GAAP   $ 4,422,000     $ 4,557,000  
  Less sales of products to be divested   22,000     57,000  
Total Revenue - Non-GAAP   $ 4,400,000     $ 4,500,000  
               
               
Projected diluted earnings per common share - GAAP   $ 2.33     $ 2.54  
               
  Per share impact of excluded items before tax:            
  Sales of products to be divested (1)

(0.05)

 

 

(0.12)

 

  Share-based compensation expense (2) 0.42     0.40  
  Amortization of acquired intangible assets (4) 0.57     0.55  
  Acquisition related charges (5) 0.03     0.02  
  Abraxis inventory step-up

(6)

0.12     0.12  
  Non-core activities (8) 0.25     0.17  
  Net income tax adjustments (9)

(0.37)

 

 

(0.33)

 

Projected diluted earnings per common share - non-GAAP   $ 3.30     $ 3.35  
             
Explanation of adjustments:
(1)   Exclude sales related to non-core former Pharmion Corp., or Pharmion, and Abraxis Bioscience Inc., or Abraxis, products to be divested.
(2)   Exclude employee share-based compensation expense.
(3)   Exclude upfront payments for research and development collaboration arrangements.
(4)   Exclude amortization of acquired intangible assets from the acquisitions of Abraxis, Pharmion and Gloucester Pharmaceuticals, Inc., or Gloucester.
(5)   Exclude deal related acquisition costs and restructuring costs for Gloucester and Abraxis and Gloucester contingent liability accretion.
(6)   Exclude acquisition-related Abraxis inventory step-up adjustment to fair value expensed during the period.
(7)  

Exclude the change in fair value of the Company's liability related to publicly traded contingent value rights that were issued as part of the acquisition of Abraxis.

(8)  

Exclude the estimated impact of activities arising from the acquisitions of Abraxis that are not related to core nab technology and of Pharmion that are planned to be divested, including the cost of goods sold for products to be divested as well as operating expenses related to such activities.

(9)   Net income tax adjustments reflects the estimated tax effect of the above adjustments.

SOURCE: Celgene Corporation

Celgene Corporation
Jacqualyn A. Fouse, 908-673-9956
Sr. Vice President and
Chief Financial Officer
or
Celgene Corporation
Tim Smith, 908-673-9951
Director
Investor Relations