Celgene earnings:
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Celgene Corporation Reports Second Quarter Results; Thalomid(R) Product
Sales Increase More Than 50 Percent
WARREN, N.J., Aug. 11 /PRNewswire/ -- Celgene Corporation (Nasdaq: CELG - news) today announced its financial results for the second quarter ended June 30, 1999. Net revenue was $5.8 million, reflecting $5.3 million in product sales of Thalomid® (thalidomide) and $495,000 of revenue from research contracts. The Company had no revenue for the comparable period in 1998. The $5.3 million in Thalomid sales represents a 51 percent increase over the preceding quarter. The net loss from continuing operations for the second quarter of 1999 was $6.2 million, or $0.37 per share, compared to a net loss of $8.8 million, or $0.55 per share, in the comparable 1998 period.
For the six-month period ended June 30, 1999, the Company posted net revenue of $10.1 million, up from $80,000 for the first six months of 1998. The revenue consisted of $8.7 million of THALOMID sales and $1.3 million of revenue from research contracts. The loss from continuing operations for the first six months of 1999 was $12.8 million, or $0.76 per share, versus a loss from continuing operations of $15.6 million, or $0.98 per share, from the comparable period in 1998. The 1998 results exclude a one-time gain from the sale of the chemical intermediate business of $7.0 million, bringing the net loss applicable to common shareholders to $8.7 million, or $0.55 per share.
On a quarter to quarter basis, Celgene's research and development costs in the second quarter of 1999 increased approximately nine percent over the first quarter of 1999 from $4.5 million to $4.9 million. The increased R & D spending in the second quarter was related to clinical trials for both Thalomid and d-methylphenidate (d-MPH), the Company's single isomer version of dl-methylphenidate commonly known as Ritalin®, as well as ongoing trials for the Company's lead SelCID(TM) compound. Selling, general and administrative costs were up approximately 11 percent over first quarter of 1999, to $5.9 million from $5.3. million, due to an expansion of Celgene's sales force and increased marketing activities.
John W. Jackson, Celgene's Chairman and Chief Executive Officer said, ''In addition to the strong sales growth of Thalomid in the quarter, I am pleased with the broadening knowledge base being developed for the potential use of the drug. The recently announced colorectal cancer study by the National Cancer Institute is reflective of the trials studying additional uses for THALOMID.'' He also noted, ''Our intellectual property was also significantly enhanced in June with the receipt of the use patent for d-MPH. We have been able to accelerate the completion of our Phase III pivotal trials and expect to announce our findings in September.''
On July 6, 1999, the Company issued a $15 million convertible note to John Hancock Mutual Life Insurance Company. The nine percent fixed rate note has a five year term and is convertible into Celgene common stock at a fixed conversion price of $19 per share.
Celgene Corporation, headquartered in Warren, NJ, is an independent biopharmaceutical company engaged in the discovery, development and commercialization of small molecule drugs for cancer and immunological diseases. Please feel free to visit the Company's Website: (http://www.celgene.com). |
