Celgene Corp. reported first-quarter revenue that fell short of analysts’ estimates as sales of drugs for lung cancer and psoriasis missed projections. The shares fell.
Revenue increased 20 percent to $2.08 billion, compared with the $2.12 billion analysts had predicted on average. Earnings excluding one-time items rose to $1.07 a share, compared with the $1.06 average estimate, according to data compiled by Bloomberg.
Celgene shares declined 4.5 percent to $108.06 at the close in New York, for the steepest one-day drop since Dec. 23. The company reiterated its forecast for 2015 earnings of $4.60 to $4.75 a share, excluding some items, and sales of $9 billion to $9.5 billion. Analysts had projected earnings of $4.81 a share and sales of $9.33 billion.
Lung cancer treatment Abraxane had sales of $223 million, compared with the $246 million average estimate, and psoriasis drug Otezla had revenue of $60 million, short of the $70.6 million analysts had predicted on average.
Sales of cancer treatment Revlimid, Celgene’s top drug, were $1.34 billion, in line with analysts’ estimates. Revlimid accounts for more than 60 percent of Celgene’s drug sales.
“Celgene had a relatively disappointing quarter, missing expectations on all product lines but Revlimid, a relatively unusual occurrence for such a quality company,” Maxim Jacobs, an analyst at Edison Investment Research, said in an e-mail. “Given Celgene’s high valuation, investors might become jittery if this weak quarter is a sign of things to come.”
Continuing to pursue its strategy of building multiple alliances, Celgene signed a partnership with London-based AstraZeneca Plc on April 24 to co-develop an experimental therapy for blood cancers, paying $450 million upfront to share rights to the anti-PD-L1 inhibitor, a new type of cancer drug that takes the brakes off the body’s immune system, helping it fight malignancies.