Revlimid Sales Boost Celgene Profits

Cancer drug sales gave Celgene(CELG Quote - Cramer on CELG - Stock Picks) a second-quarter edge, prompting a slight increase in year-end expectations Thursday.

Celgene reported GAAP earnings of $54.9 million, or 13 cents a share, compared to $9.6 million, or 3 cents a share, in the prior-year quarter.

The company reported earning $110.4 million, or 26 cents a share, after items, compared to $42.5 million, or 11 cents a share, in the year-ago quarter.

Analysts surveyed by Thomson Financial had expected 23 cents a share, on revenue of $318 million. Quarterly revenue came in at $347.9 million, an increase of 76.4% over the same period in 2006.

Celgene said the increase was driven by net sales of cancer drug Revlimid, which increased 187% year over year to $180.9 million. Also on the oncology front, Thalomid sales reached $117.7 million in the quarter, and alkeran net sales were $18.7 million compared to $4.5 million in the second quarter of 2006.

The company said revenue from focalin, for Attention Deficit Hyperactivity Disorder, and the ritalin family of drugs totaled $24.8 million, compared to $17.7 million in the 2006 period.

"This was a historic quarter by all measures underscored by extraordinary financial and operational results," CEO Sol Barer said.

Looking ahead, Celgene raised guidance for earnings per share to a range of $1 to $1.05, from the previously expected $1 a share. It now predicts revenue of $1.4 billion rather than the $1.3 billion previously forecast.

Shares of Celgene climbed $1.35, or 2.3%, to $60.10 in recent trading Thursday.