Celgene Admits It Screwed Up Otezla Estimates; Investors Lose Confidence
Q3 revenue grew 10% to $3.29bn, but came in below consensus, mostly due to Otezla. The blockbuster drug's new reality and recent GED-0301 failure in Crohn's disease contributed to Celgene's decision to lower guidance for both 2017 and 2020.
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Documents detailing negotiations over the proposed Bristol/Celgene merger show Bristol’s offer decreased over time, but Celgene may still come out ahead. Effort to find another bidder failed, however.
Third quarter sales grew 18.5% to $3.89bn, beating consensus with Otezla's contribution of 40.3% growth. After several disappointments, Celgene appears to be back on track with efforts to boost revenue before Revlimid generics hit in 2022.
Second quarter Otezla sales came in slightly lower than consensus, but Celgene believes changes in inventory levels will smooth out for the remainder of 2018. However, the company is reconsidering its pursuit of IBD indications for Otezla in deference to its potential blockbuster ozanimod.