Celgene Corporation Announces Financial Outlook and Preliminary 2012 Results

  Celgene Corporation Announces Financial Outlook and Preliminary 2012 Results

    2012 Adjusted Diluted EPS Expected to be at the Higher End of Previous
      Guidance Range at Approximately $4.90 (GAAP Range $3.37 to $3.39)

       REVLIMID^® Achieved Q4 2012 Net Sales of Just Over $1.0 Billion

2013 Guidance: Total Net Product Sales of $6.0 Billion; REVLIMID $4.1 Billion
  to $4.2 Billion; Adjusted Diluted EPS $5.50 to $5.60 (GAAP Range $4.67 to
                                    $4.79)

  Long-Term 2015 Targets of $8.0- 9.0 Billion in Total Net Product Sales and
Adjusted Diluted EPS of $8.00 to $9.00 Reaffirmed; Introduced 2017 Targets of
Approximately $12.0 Billion in Total Net Product Sales and $13.00 to $14.00 in
                             Adjusted Diluted EPS

Apremilast Phase III Psoriasis ESTEEM Trials Meet Primary And Major Secondary
                                   Endpoint

Business Wire

SUMMIT, N.J. -- January 7, 2013

Celgene Corporation (NASDAQ: CELG) provided its financial outlook for 2013 at
the JPMorgan 31^st Annual Healthcare Conference. In 2013, total net product
sales are expected to be approximately $6.0 billion, an 11.4% year-over-year
increase. REVLIMID net sales are expected to be in the range of $4.1 billion
to $4.2 billion, including approximately $90 million of negative
year-over-year foreign exchange impact. Assuming constant foreign exchange,
REVLIMID growth would be 11 to 14 percent. Adjusted diluted earnings per share
(EPS) is expected in the range of $5.50 to $5.60, a 12 to 14 percent
year-over-year increase. Based on U.S. Generally Accepted Accounting
Principles (GAAP), diluted EPS is expected in the range of $4.67 to $4.79.

“The accomplishments of 2012 and our outlook for 2013 have positioned us with
significant catalysts as we enter a new growth phase for Celgene in all three
therapeutic areas of our business – hematology, oncology and inflammation and
immunology,” said Bob Hugin, Celgene’s Chairman and Chief Executive Officer.
“The increased visibility we now have to many of those catalysts allows us to
reaffirm our 2015 targets and give new targets out to 2017.”

2012 Financial Results Year-Over-Year (Unaudited)

  *Total net product sales are expected to be $5.4 billion, up 15%
    year-over-year; Total revenues are approximately $5.5 billion, up 14%
    year-over-year
  *REVLIMID quarterly net product sales to surpass $1.0 billion for the
    fourth quarter of 2012
  *Adjusted operating margin is expected to be ~48% for the full year, up 300
    bps year-over-year; GAAP operating margin is expected to be ~33%, up 300
    bps year-over-year
  *Adjusted diluted EPS expected to be approximately $4.90; On a GAAP basis,
    diluted EPS is expected to be in the range of $3.37 to $3.39
  *Certain activities involved in determining the GAAP results for the fiscal
    year ended December 31, 2012 are in process and could result in the final
    reported GAAP results being different from the expected results noted in
    this press release. Please see the attached Reconciliation of
    Estimated/Projected GAAP to Adjusted (Non-GAAP) Measures for further
    information.

Celgene Forecasts Solid Revenue and Earnings Growth in 2013

  *Total net product sales expected to be approximately $6.0 billion, an
    increase of 11.4% year-over-year, including an approximately $100 million
    negative year-over-year currency impact
  *REVLIMID net sales anticipated to be in the range of $4.1 billion to $4.2
    billion, an increase of 9 to 12 percent year-over-year, 11 to 14 percent
    on a constant currency basis
  *Adjusted diluted EPS expected to be in the range of $5.50 to $5.60, an
    increase of approximately 12 to 14 percent year-over-year; On a GAAP
    basis, diluted EPS is expected to be in the range of $4.67 to $4.79
  *Adjusted operating margins expected to be approximately 49% after
    investments across the entire organization, including Inflammation and
    Immunology (I&I); GAAP operating margins are expected to be approximately
    40%

2015 and 2017 Long-term Financial Targets

  *Reaffirming 2015 targets of $8.0-9.0 billion in net product sales and
    adjusted diluted EPS of $8.00 to $9.00
  *2017 target of $12.0 billion in net product sales and adjusted diluted EPS
    of $13.00 to $14.00
  *Targeting ABRAXANE^® net sales of $1.0-1.25 billion in 2015 and $1.5-2.0
    billion in 2017
  *Net product sales growth between 2013 and 2017 is expected to be 19%
    (CAGR%), 13% for the existing business, 15% including ABRAXANE pancreatic
    cancer and 19% including apremilast

2013 Key Milestones

Hematology

  *Submit REVLIMID newly diagnosed and maintenance multiple myeloma with the
    U.S. Food and Drug Administration (FDA) and the European Medicines Agency
    (EMA)
  *Expect decision on REVLIMID MDS del 5q submission from the EMA
  *Expect data from REVLIMID MM-020 trial in newly diagnosed multiple myeloma
  *Anticipate FDA decision of REVLIMID in relapsed/refractory mantle cell
    lymphoma
  *Expect regulatory decision on REVLIMID in China and other emerging markets
    for relapsed/refractory multiple myeloma
  *Anticipate regulatory decision on POMALYST^® (pomalidomide) in
    relapsed/refractory multiple myeloma by FDA and EMA
  *Expect data from phase III trial of POMALYST in myelofibrosis and sNDA
    submission
  *Initiate phase II program for CC-292 and data from phase Ib trial
  *Complete enrollment in REVLIMID CLL-008 trial in first-line elderly
    chronic lymphocytic leukemia

Oncology

  *Global regulatory submissions of ABRAXANE in pancreatic cancer
  *Expect final overall survival data of ABRAXANE in melanoma
  *Initiate multiple trials of CC-486 in solid tumors
  *Advance CC-223 into multiple phase II trials

I&I

  *Filing with FDA and EMA of apremilast in psoriatic arthritis and psoriasis
  *Data from phase III PALACE-4 trial of apremilast in biologic-naïve
    psoriatic arthritis
  *Complete enrollment in phase III trial of apremilast in ankylosing
    spondylitis
  *Phase II data of CC-11050 in multiple indications

Q4 and Full year 2012 Conference Call and Webcast Information

Celgene will host a conference call to discuss the results and achievements of
its fourth quarter and full year 2012 operating and financial performance on
January 24, 2013, 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 24, 2013, until midnight ET January 31, 2013. To access the
replay, in the U.S. dial 800-585-8367; outside the U.S. dial 404-537-3406; and
enter reservation number 86013069.

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.

Forward-Looking Statements

This press release contains forward-looking statements, which are generally
statements that are not historical facts. Forward-looking statements can be
identified by the words "expects," "anticipates," "believes," "intends,"
"estimates," "plans," "will," “outlook” and similar expressions.
Forward-looking statements are based on management’s current plans, estimates,
assumptions and projections, and speak only as of the date they are made. We
undertake no obligation to update any forward-looking statement in light of
new information or future events, except as otherwise required by law.
Forward-looking statements involve inherent risks and uncertainties, most of
which are difficult to predict and are generally beyond our control. Actual
results or outcomes may differ materially from those implied by the
forward-looking statements as a result of the impact of a number of factors,
many of which are discussed in more detail in our Annual Report on Form 10-K
and our other reports filed with the Securities and Exchange Commission.

In addition to financial information prepared in accordance with U.S. GAAP,
this press release also contains adjusted financial measures that we believe
provide investors and management with supplemental information relating to
operating performance and trends that facilitate comparisons between periods
and with respect to projected information.These adjusted measures are
non-GAAP and should be considered in addition to, but not as a substitute for,
the information prepared in accordance with U.S. GAAP. We typically exclude
certain GAAP items that management does not believe affect our basic
operations and that do not meet the GAAP definition of unusual or
non-recurring items.  Other companies may define these measures in different
ways. See the attached Reconciliation of Estimated/Projected GAAP to Adjusted
(Non-GAAP) Measures for explanations of the amounts excluded and included to
arrive at the adjusted measures for the year ended December 31, 2012 and for
the projected amounts for the year ending December 31, 2013.


Celgene Corporation and Subsidiaries
Reconciliation of Estimated/Projected GAAP to Adjusted (Non-GAAP) Measures
(In thousands, except percentages and per share data)
(Unaudited)
                                              Twelve Months Ended
                                          December 31, 2012
                                              Range
                                              Low               High
Estimated diluted earnings per       (1)      $   3.37            $  3.39
common share - GAAP
                                                                  
  Per share impact of excluded
  items before tax:
  Cost of goods sold (excluding
  amortization of acquired
  intangible assets):
  Share-based compensation           (2)          0.03               0.03
  expense
                                                                  
  Research and Development:
  Share-based compensation           (2)          0.23               0.23
  expense
  Upfront collaboration payments     (1)(3)       0.44               0.42
  IPR&D impairment                   (1)(4)       0.12               0.12
                                                                  
  Selling, general and
  administrative:
  Share-based compensation           (2)          0.27               0.26
  expense
                                                                  
  Amortization of acquired           (5)          0.44               0.44
  intangible assets
                                                                  
  Acquisition related (gains)
  charges and restructuring,
  net:
  Acquisition and restructuring      (6)          0.01               0.01
  costs
  Change in fair value of            (6)          0.39               0.39
  contingent consideration
                                                                  
  Net income tax adjustments         (7)         (0.40  )        (0.39  )
Estimated diluted earnings per                Approximately $4.90
common share - Adjusted
                                                                  
                                                                  
                                              Twelve Months Ending
                                              December 31, 2013
                                              Range
                                              Low                 High
                                                                  
Projected diluted earnings per                $   4.67            $  4.79
common share - GAAP
                                                                  
  Per share impact of excluded
  items before tax:
  Share-based compensation           (2)          0.61               0.59
  expense
  Amortization of acquired           (5)          0.62               0.61
  intangible assets
  Change in fair value of            (6)          0.03               0.03
  contingent consideration
  Net income tax adjustments         (7)         (0.43  )          (0.42  )
Projected diluted earnings per                $   5.50           $  5.60   
common share - Adjusted
                                                                  
                                                                  
                                                                  
Celgene Corporation and Subsidiaries
Reconciliation of Estimated/Projected GAAP to Adjusted (Non-GAAP) Measures
(Continued)
(In thousands, except percentages and per share data)
(Unaudited)
                                                                  
                                              Twelve Months Ended December 31,
                                                 2012             2013   
                                                                  
  Operating margin percentage of     (1)          32.8   %           40.3   %
  revenue - GAAP
  Plus adjustments:
  Share-based compensation           (2)          4.2    %           4.2    %
  expense
  Upfront collaboration payments     (1)(3)       3.5    %           --
  IPR&D impairment                   (1)(4)       1.0    %           --
  Amortization of acquired           (5)          3.5    %           4.3    %
  intangible assets
  Change in fair value of            (6)         3.1    %          0.2    %
  contingent consideration
  Operating margin percentage of                 48.1   %          49.0   %
  revenue - Adjusted
                                                                  
  Cost of goods sold percentage                   5.6    %
  of net product sales - GAAP
  Less share-based compensation      (2)         0.2    %
  expense
  Cost of goods sold percentage
  of net product sales -                         5.4    %
  Adjusted
                                                                  
  Research and development           (1)          30.2   %
  percentage of revenue - GAAP
  Less adjustments:
  Share-based compensation           (2)          1.9    %
  expense
  Upfront collaboration payments     (1)(3)       3.5    %
  IPR&D impairment                   (1)(4)      1.0    %
  Research and development
  percentage of revenue -                        23.8   %
  Adjusted
                                                                  
  Selling, general, and
  administrative percentage of                    25.0   %
  revenue - GAAP
  Less share-based compensation      (2)         2.1    %
  expense
  Selling, general, and
  administrative percentage of                   22.9   %
  revenue - Adjusted

Notes:
    Certain activities involved in determining the GAAP results for the fiscal
    year ended December 31, 2012 are in process and could result in the final
(1) reported GAAP results being different from the expected results noted in
    this press release. Activities still in process for the fourth quarter of
    2012 include the impairment testing for intangible assets and the initial
    valuation of assets acquired during the period.
(2) Exclude share-based compensation expense.
    Exclude upfront payments for research and development collaboration
(3) arrangements and purchases of intellectual property for unapproved
    products.
(4) Exclude In-process Research and Development, or IPR&D, impairments. IPR&D
    assets are tested for impairment at least annually.
    The testing of IPR&D assets for impairment for the fourth quarter of 2012
    is currently in progress.
(5) Exclude amortization of acquired intangible assets from business
    combinations.
(6) Exclude acquisition related charges and restructuring costs related to
    business combinations.
(7) Net income tax adjustments reflects the estimated tax effect of the above
    adjustments.

                                                                              
Return on Invested Capital (ROIC)
              2012           2011          2010          2009          2008           2007
Operating     1,805,556      1,442,753     989,635       841,526       (1,464,218 )   425,121
income
Certain
charges                                                        2,043,069    
(1)
Non-GAAP
operating     1,805,556      1,442,753     989,635       841,526       578,851        425,121
income
                                                                                      
Effective     14         %  7         %  13        %  20        %  24         %  56        %
tax rate
Non-GAAP
operating     1,552,778      1,339,017     860,221       669,930       439,272        186,203
income
after tax
                                                                                      
Total         5,730,144      5,512,727     5,995,472     4,394,606     3,491,328      2,843,944
equity
Certain
charges       1,979,510      1,979,510     1,979,510     1,979,510     1,979,510
(1)
Total         3,081,497    1,802,269   1,247,584   -           -            196,555   
debt
Total         10,791,151     9,294,506     9,222,566     6,374,116     5,470,838      3,040,499
capital
                                                                                      
Total
capital       9,294,506      9,222,566     6,374,116     5,470,838     3,040,499      2,376,066
beginning
of period
Total
capital       10,791,151   9,294,506   9,222,566   6,374,116   5,470,838    3,040,499 
end of
period
Average
total         10,042,829   9,258,536   7,798,341   5,922,477   4,255,669    2,708,283 
capital
                                                                                      
ROIC          15.5       %   14.5      %   11.0      %   11.3      %   10.3       %   6.9       %

(1) Excludes $1.7 billion of IPR&D expense in 2008 associated with the
acquisition of Pharmion, as well as $300 million of expense related to the
acquisition of intellectual property rights for Vidaza in 2008 prior to it's
launch. Amounts adjusted for tax effects in 2008 are excluded from equity in
all years including and subsequent to 2008.

Contact:

Investors:
Celgene Corporation
Patrick E. Flanigan III, 908-673-9969
Vice President, Investor Relations
or
Media:
Celgene Corporation
Brian P. Gill, 908-673-9530
Vice President, Corporate Communications