Two correspondences raised concerns about Abraxane benefits, toxic effects, incremental cost and the effect of pancreatic tumor location on the drug’s efficacy; however, Citigroup would buy CELG on today's weakness, seeing the drug as a strong seller and the NEJM story as a non-event.
Alexion Pharma (ALXN +22%), on the other hand, reported a strong Q4 with solid guidance; Brean Capital praises ALXN as "highly committed to developing a portfolio of drugs for diseases that are both rare and severe."
More on Celgene (CELG +2.1%) Q2: net profit +30% to $478M; adjusted net profit +20% to $653M. Revenue +16.8% to $1.6B. Revlimid (multiple myeloma) sales $1.05B vs forecasts of $1.04B. Abraxane sales $155M and Pomalyst (recently launched) $66M; both are cancer drugs. Raises FY guidance: EPS seen at $5.80-5.90 vs $5.55-5.65 prior forecast and consensus of $5.77; net product sales seen at $6.2B vs $6B and $6.18B.
More on Celgene (CELG) Q1 earnings: REVLIMD sales +16% Y/Y to $1B, light of consensus of $1.1B. ABRAXANE sales of $123M and VIDAZA of $204M inline. SG&A expenses of $333M, +11.3%. Purchased approximately 4.2M shares at cost of $403M (average price $95.95). FY2013 EPS guidance raised to $5.55-$5.65 from $5.50-$5.60. Shares -0.9% premarket. Conference call at 9 ET. (PR)