Good interview on CNBC. Here's part of it. Celgene's first quarter earnings beat the street estimates as net revenue increased by more than 50 fold over the year ago to $4.3 million dollars. John Jackson, CEO, said they were pleased with the numbers, as they had record first quarter sales and revenues. They have three parts to their business: sales of Thalomid - with $3.5 million in sales, and running at an $18 million rate (over 3 months.) They had a $1 million payment from Biovail for the Ritalin licensing; and I couldn't hear what the third part was.
Ted Allen, the CNBC reporter, commented that people hear Thalidomide and think of the birth defects that went on in the '50s. Jackson said it is important to remember that thalidomide did cause severe birth defects and women of childbearing age should not take this drug, or only with precautions. However, he said what is exciting about Thalidomid is that it appears to have various potentials in cancer, inflammatory bowel disease as well as primary indications in dermatology. There are over 60 clinical trials ongoing in the US alone using Thalidomide, mostly in cancer.
Allen commented that Thalidomid seems to be a pretty amazing drug; in head & neck cancers, brain cancers-glioblastoma; leprosy, Hansons disease, and Crohn's disease.
Jackson was asked if shareholders should be concerned about the small revenues for the first quarter of $3.5 million from sales of Thalomid and if it was a one-drug company and Jackson said that analysts are talking about Thalomid having a potential in the $200 to $300 million range and that Celgene is excited about their deep product pipeline and in taking thalidomide and trying to improve on it. Celgene has thalidomide analog's that are more potent in terms of both TNF- tumor necrosis factor and anti-angiogenesis and he said they have worldwide patents on these drugs and thinks there is a real opportunity for Celgene to develop into a worldwide pharmaceutical force. Celgene is hoping to become profitable by the fourth quarter or the first quarter of next year.
Jackson said that Celgene is also one of the leaders in chirology. Chiral drugs are the mirror image of the parent drug, and they have a totally different impact, possibly less side effects. Their lead chiral compound is the chirally pure image of Ritalin, which has a $400 million plus market in the United States alone. They will complete phase 3 by the end of the year and they are hoping to show that there will be a reduction in side effects and that it has a prolonged duration of action, which will be important. |
