Celgene Upbeat About Revlimid Sales But Warns on Currency Effects

By Angela Chen 

Celgene Corp. warned Monday that foreign-currency impacts will partly dent sales gains tied to its blockbuster drug Revlimid, as losses from unfavorable rates are expected to approach $100 million this year.

Ahead of its presentation at the J.P. Morgan Healthcare Conference, the Summit, N.J., drug maker also noted that this will be an important year for Revlimid, which treats blood cancer.

The U.S. Food and Drug Administration is expected to decide whether Revlimid can be used for newly diagnosed multiple myeloma, and the drug is also pending approval decisions in Japan and Europe.

The company will begin enrolling patients in several clinical trials, investigating whether Revlimid can treat a type of lymphoma, and will continue Revlimid expansion in Russia, Mexico and Brazil. The company's results of late have depended on rising sales of Revlimid.

The company will also continue developing its drug Otezla, which treats the skin condition psoriasis and arthritis.

Overall, Celgene forecast sales of $9 billion to $9.5 billion in 2015, and earnings of $4.60 to $4.75 a share. Analysts polled by Thomson Reuters had called for $9.28 billion in revenue and earnings of $4.85 a share.

Revlimid sales are expected reach $5.6 billion to $5.7 billion this year. Revlimid sales were $4.98 billion in 2014, up 16% from 2013.

For 2014, Celgene expects sales of $7.56 billion, up 19% from a year earlier, and earnings of $3.71 a share, which is a 24% increase from 2013. Analysts had called for revenue of $7.66 billion and earnings of $3.67 a share.

And for the fourth quarter, product sales are expected to be about $2.05 billion on earnings of $1.01. The figure includes approximately $25 million of negative foreign exchange impact.

Analysts had called for $2.08 billion and 99 cents a share.

Celgene reaffirmed its long-term target of $13 billion to $14 billion in sales by 2017, and $20 billion in sales by 2020.

Shares of Celgene have risen about 36% in the past 12 months through Friday's close.

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