What Are Celgene’s Key Sources of Revenue?

by Trefis Team
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Celgene (NASDAQ:CELG) is a global biopharmaceuticals company, which has recently entered into a merger agreement with Bristol-Myers Squibb in a deal valued at $74 billion. Celgene generates its revenues primarily from sales of drugs used for the treatment of cancer and inflammatory diseases worldwide. Its top selling drug is Revlimid, which accounts for roughly 65% of the company’s overall revenues. We have created an interactive dashboard ~ What’s Celgene’s Revenue And Profit Breakdown? ~ which highlights the drug-wise breakup of revenues and profits for Celgene. You can also modify the revenue and profit drivers to see the impact on the company’s overall revenues and profits.

Celgene operates in two key therapeutic areas ~ Hematology /Oncology, and Inflammation & Immunology. The company’s blockbuster drug Revlimid is used for the treatment of multiple myeloma, mantle cell lymphoma (MCL), and myelodysplastic syndromes (MDS). The drug has seen stellar sales growth from $5.8 billion in 2015 to an estimated $9.7 billion in 2018. The drug’s peak sales are estimated to be as high as $15 billion by 2022, when it nears its patent expiration. The MDS market is expected to grow at a CAGR of around 10% till 2022 to an estimated $2.4 billion, and Revlimid’s share is estimated to be over 90%. However, in the MCL market it faces strong competition from Imbruvica and Rituxan. Pomalyst is another billion dollar drug for Celgene, with sales estimated to be over $2 billion in 2018. It is also used for the treatment of multiple myeloma. Otezla is used to treat psoriatic arthritis and plaque psoriasis, with estimated sales of over $1 billion in 2018. Overall, these three drugs account for roughly 90% of the company’s total revenues. Looking at operating margins, they grew from 28% in 2016 to 36% in 2017, and are estimated to be 34% in 2018, as per the company’s guidance, which translates into $5.2 billion profit.

Celgene’s late stage pipeline is attractive with ozanimod in immunology and inflammation, and luspatercept, liso-cel (JCAR017), bb2121, and fedratinib in hematology. These drugs have potential peak sales of over $10 billion. Bristol-Myers Squibb recently announced its plan to merge with Celgene. The combined entity will have revenues of over $37 billion, and earnings could be as high as $6 per share in the coming years, according to our estimates (See – Bristol-Myers Squibb & Celgene Combined Could Generate Earnings of Over $6 Per Share In The Coming Years).


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