Analyst Conference Summary

conference date: July 29, 2010 @ 6:00 AM Pacific Time
for quarter ending: June 30, 2010 (second quarter)

Forward-looking statements

I was shocked when, getting back from vacation, I went to listen to the conference on August 6, only to find that the phone-in and web audio links were taken down August 5. Most companies leave their conference recordings up longer. This is very bad investor relations, in my opinion. The information below is from the press release only.

Overview: Spectacular revenue and earnings growth.

Basic data (GAAP):

Revenue was $852.7 million, up 8% sequentially from $791.3 million and up 36% from $628.7 million year-ago.

Net income was $155.4, down 34% sequentially from $234.4 million but up 9% from $142.8 million

EPS (earnings per share) were $0.33, down 34% sequentially from $0.50, but up 6% from $0.31 year earlier.

Comparisons:

Q1 2010 Celgene summary
Q2 2009 Celgene summary

Guidance:

2010 full year revenue range increased to $3.4 to $3.45 billion. Non-GAAP EPS range $2.65 to $2.70, including $0.05 dilution from Abraxis acquisition.

Quarter Highlights:

Revlimid revenues were $587 million, up 48% y/y.

Vidaza revenues were $132 million, up 43% y/y.

Thalomid revenues were $98 million, down 7% y/y.

Non GAAP numbers: operating income $390 million; net income $323 million, up 50% y/y; EPS $0.69, up 50% y/y. The differences between GAAP and non-GAAP were mainly due to amortization expense ($40.0 million for Pharmion, $7.1 million for Gloucester) and $121.2 million in upfront collaboration payments, plus $22.2 million share-based compensation.

Definitive merger agreement with Abraxis BioScience signed.

Revlimid was granted regulatory and reimbursement approveal in Japan for relapsed or refractory multiple myeloma.

Cash and equivalents ended at $3.14 billion.

Cost of goods sold was $68.0 million, R&D $342.8 million, selling general and administrative expense $219.3 million, amortization of acquired assets $47.1 million, acquisition related charges $7.8 million. Leaving GAAP operating income of $167.8 million. Interest income $4.6 million. Income tax provision $16.9 million.

Pipeline

Apremilast for Psioratic arthritis Phase III trial initiated.

Revlimid for diffuse large b-cell lymphoma Phase II/III trial initated.

Istodax for peripheral t-cell lymphoma study completed (data not yet available).

ACE-011 for renal anemia Phase II study initiated.

Q&A:

not available

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