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Wednesday November 10, 8:03 am Eastern Time
Company Press Release
SOURCE: Celgene Corporation
Celgene Corporation Announces Third Quarter Results
WARREN, N.J., Nov. 10 /PRNewswire/ -- Celgene Corporation (Nasdaq: CELG - news) announced today results for the third quarter ended September 30, 1999. Net revenue was $6.7 million and consisted of $6.3 million from sales of Thalomid©(thalidomide) and $425,000 of revenue from research contracts. For the comparable period in 1998, the Company reported revenue of $1.1 million, primarily from the initial sales of Thalomid. The loss from continuing operations for the third quarter 1999 was $6.1 million, or $0.36 per share, compared to a loss of $8.0 million, or $0.49 per share, in the comparable 1998 period.
Net revenue for the nine month period ended September 30, 1999 was $16.8 million versus $1.1 million for the first nine months of 1998. The revenue consisted of $15.1 million of Thalomid sales and $1.7 million of revenue from research contracts. The loss from continuing operations for the first nine months of 1999 was $18.9 million, or $1.12 per share, compared to a loss of $23.6 million, or $1.47 per share, from the comparable period in 1998. The 1998 results included a one time gain of $7.0 million from the sale of the chemical intermediate business bringing the loss applicable to common shareholders to $16.7 million, or $1.04 per share.
Thalomid sales of $6.3 million represent a 20 percent increase over the preceding quarter. Celgene's research and development costs in the third quarter of 1999 were essentially unchanged compared to the second quarter at $4.9 million in both periods. Selling, general and administrative costs were up approximately 12 percent over the second quarter of 1999, to $6.6 million from $5.9 million, due to an expansion of the sales force and increased marketing activities, which includes the Company's System for Thalidomide Education and Prescribing Safety (S.T.E.P.S(TM)) program, designed to facilitate the safe and appropriate use of Thalomid.
John W. Jackson, Celgene's Chairman and Chief Executive Officer said, ``The accomplishments of this quarter reflect the outstanding progress being made on all fronts as we begin to capitalize on Celgene's potential. Although the continued strong growth in THALOMID© sales and the superior results achieved in the pivotal trials for Attenade(TM) are highlights for the quarter, I am also pleased by the progress being made in the advancement of our pipeline products, the SelCIDs(TM) and IMiDs(TM).
``We look forward to the increased dissemination of clinical data discussing the potential uses of both our lead product, THALOMID, and our pipeline products during the coming months. Broadening the knowledge base for future uses of our drugs continues to be a critical corporate objective.'
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: celgene.com.
This release contains certain forward-looking statements which involve known and unknown risks, delays, uncertainties and other factors not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or other expectations implied by these forward-looking statements. These factors include but are not limited to actions by the FDA and other regulatory authorities, the success of clinical trials, potential future uses of the Company's drugs, and increased sales revenue for the Company's products, and those factors detailed in the Company's filings with the Securities and Exchange Commission such as 10K, 10Q, and 8K reports.
Celgene Corporation
Consolidated Financial Results
(Unaudited)
(In thousands, except per share data)
Statement of Operations
Three Month Period Nine Month Period
Ended September 30 Ended September 30
1999 1998 1999 1998
Product sales $6,315 $1,031 $15,064 $1,031
Research contracts 425 25 1,733 105
Total Revenue 6,740 1,056 16,796 1,136
Cost of Goods Sold 702 59 2,076 59
Research and
development 4,933 5,238 14,366 13,969
Selling, general
and administrative 6,618 3,876 17,847 11,207
Total costs and
expenses 12,253 9,174 34,289 25,235
Operating Loss (5,513) (8,118) (17,493) (24,099)
Interest income/
(expense)-net (605) 97 (1,443) 452
Loss from continuing
operations (6,118) (8,021) (18,936) (23,648)
Gain from discontinued
operations -- -- -- 6,955
Accretion of premium
on preferred stock -- -- -- 25
Net loss applicable
to shareholders $(6,118) $(8,021) $(18,936) $(16,717)
Per share basic
and diluted:
Loss from continuing
operations $(0.36) $(0.49) $(1.12) $(1.47)
Net loss applicable
to shareholders $(0.36) $(0.49) $(1.12) $(1.04)
Weighted average
shares outstanding 17,028 16,399 16,903 16,062
Balance Sheet Data
September 30, December 30,
1999 1998
Cash, cash equivalents
& marketable securities $18,624 $5,124
Total assets 27,089 11,928
Convertible notes 38,458 8,349
Stockholders' Equity
(Deficit) $(18,496) $(3,733)
SOURCE: Celgene Corporation |
