Celgene Corp (CELG.O) on Monday raised its 2017 revenue and profit forecasts on the strength of its flagship Revlimid multiple myeloma drug and increased expectations for other treatments for cancer and psoriasis.
The U.S. biotech company reiterated its 2020 forecast for sales exceeding $21 billion as Chief Executive Officer Mark Alles kicked off the annual JP Morgan Healthcare Conference in San Francisco.
Following the official presentation, Chief Operating Officer Jackie Fouse said the 2020 forecast was largely based on increasing sales of its existing product portfolio.
Positive data from the experimental multiple sclerosis drug ozonimod could lead to a revision of 2020 revenue targets, she said. The company has 10 products in development with billion-dollar potential, four of them multibillion-dollar opportunities, Fouse said.
Celgene expects to file for approval of ozonimod by year-end.
The company forecast 2017 earnings of $7.10 to $7.75 per share before special items, up from its prior view of $6.75 to $7.00. It raised its revenue outlook to a range of $13 billion to $13.4 billion from $12.7 billion to $13 billion.
Analysts on average were expecting a 2017 profit of $7.04 per share and revenue of $13.2 billion.
Investors were not thrilled, possibly because of the conservative long-term outlook or an updated 2016 revenue estimate slightly below Wall Street expectations. Celgene shares fell more than 1 percent before trimming losses.
"Celgene is trading down modestly as expectations were high going in," Evercore ISI analyst John Scotti said in a research note, even though the "2017 EPS guide was slightly above the Street" and revenue was in line with expectations.
For 2016, Celgene said it expected product sales of about $11.2 billion and earnings of about $5.94 per share, excluding items. Analysts on average forecast a profit of $5.92 and revenue of $11.29 billion, according to Thomson Reuters I/B/E/S.
The company sees 2017 Revlimid sales of $8 billion to $8.2 billion.
Alles highlighted the company's pipeline opportunities and various partnerships, saying it expected data from 19 late-stage trials through 2018.
"We are entering a pivotal two-year period with multiple catalysts increasing our confidence in our ability to achieve or exceed our 2020 targets and sustain our growth from 2020 to 2030," Alles said.
The company said it could significantly expand its Abraxane franchise for solid tumor cancers, pointing to multiple lung cancer trials in combination with new immuno-oncology drugs.
Alles said he believed Abraxane could eventually help cure certain subsets of early-stage pancreatic cancer. "This would be groundbreaking," he said.
(Reporting by Bill Berkrot; additional reporting by Deena Beasley in San Francisco and Akankshita Mukhopadhyay in Bengaluru; Editing by Lisa Von Ahn)