Acquisition Charges Hit Celgene

Celgene(CELG Quote) posted a first-quarter loss on charges Thursday related to its Pharmion acquisition but strolled past Street targets with its adjusted quarterly results, gaining steam from strong sales of multiple myeloma drug Revlimid.

After initially trading higher in premarket trading, shares of the Summit, N.J.-based biopharmaceutical company recently were trading down 0.5% at $62.79.

On a GAAP basis, the company reported a loss of $1.64 billion, or $3.98 a share, compared with a profit of 13 cents a share in the year-prior period. Revenue rose to $462.5 million, from $293.4 million. GAAP results included a $1.74 billion charge related to the acquisition of Pharmion, a deal that closed March 8.

On an adjusted basis, Celgene reported profit of $159.3 million, or 36 cents a share. Results surpassed the expectations of Wall Street analysts surveyed by Thomson Reuters who were looking for earnings of 34 cents a share on revenue of $444 million on average.

Sales of multiple myeloma (MM) Revlimid totaled $286.8 million. The drug, which competes with Millennium Pharma's (MLNM Quote) Velcade, outpaced analysts' expectations of $272 million. (In Europe, Velcade is marketed by Johnson & Johnson (JNJ Quote).)

"This is the second quarter in a row of significant upside to Revlimid estimates and represents impressive 16% quarter over quarter growth," wrote JPMorgan analyst Geoffrey Meacham in a note to investors.

Sales of MM treatment Thalomid rose to $113.9 million, stretching just above Wall Street's view of $112 million.

European regulators recently granted marketing approval for Pharmion's Vidaza, a treatment for myelodysplastic syndrome (MDS), a pre-cancerous blood cell disease. Celgene said Thursday that it expects about $200 million in sales of the drug between March 8 -- the day after the close of the Pharmion acquisition -- and the end of the year.