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Celgene Earnings Report

Celgene Corp. has released an earnings report for the first quarter of 2011.  Celgene posted net income of $255.6 million (54 cents per share) for the first quarter of 2011.  Celgene reported net income of $234.4 million (50 cents per share) in the year ago period.  Celgene's revenue was boosted by strong sales of Revlimid and Vidaza.  Celgene revenue was up 42% to $1.13 billion.

Celgene CFO Jacqualyn Fouse from the earnings report conference call...

Starting with the top line, non-GAAP total revenue achieved 40% year-over-year growth to hit $1.11 billion in Q1 of 2011. This was a record revenue quarter for Celgene and our second quarter of revenues above the $1 billion mark. As we will see in a moment in the breakdown of net product sales, our growth was fueled by strong performances from both REVLIMID and VIDAZA and our first full quarter of ABRAXANE sales. Our growth is volume-driven and comes from both share and duration gains as well as geographic expansion.

 

CELG stock price closed with a quote of $58.84 a share.

Celgene earnings report

Celgene Buys Abraxis Bioscience

Celgene (NASDAQ CELG) has announced a buyout deal of Abraxis Bioscience (NASDAQ ABII).

Celgene will pay $2.9 billion in cash and stock for Abraxis BioScience Inc., which values ABII at $71.93 per share based on Celgene's latest closing price.

Abraxane, which is Abraxis BioScience's inject-able cancer treatment, is currently being tested against skin, lung, and pancreatic cancer. Celgene will pay Abraxis $300 million if Abraxane is approved as a pancreatic cancer treatment with an additional $100 million coming due if Abraxane is approved by April 1, 2013.  In addition CELG will pay ABII $250 million if Abraxane is approved as a treatment for non-small cell lung cancer.

CELG stock price is currently down 4.75% to $50.71 a share in trading on the NASDAQ.

Shares of ABII are up 20.71% to $74.01 a share.