Q4 2010 Earnings Call
January 27, 2011 9:00 am ET
Mark Alles -
Robert Hugin - Chief Executive Officer, President, Secretary and Director
Tim Smith - Director of Investor Relations
Jacqualyn Fouse - Chief Financial Officer and Senior Vice President
Geoffrey Porges - Bernstein Research
Jason Kantor - RBC Capital Markets, LLC
Jim Birchenough - Barclays Capital
Brian Abrahams - Wells Fargo Securities, LLC
Ian Somaiya - Piper Jaffray Companies
Yaron Werber - Citigroup Inc
Maged Shenouda - Stifel, Nicolaus & Co., Inc.
Bret Holley - Oppenheimer & Co. Inc.
Christopher Raymond - Robert W. Baird & Co. Incorporated
Mark Schoenebaum - ISI Group Inc.
Matthew Roden - UBS Investment Bank
Geoffrey Meacham - JP Morgan Chase & Co
Previous Statements by CELG
» Celgene CEO Discusses Q3 2010 Results - Earnings Call Transcript
» Celgene Q2 2010 Earnings Call Transcript
» Celgene Q1 2010 Earnings Call Transcript
Good morning, ladies and gentlemen, and welcome to Celgene's 2010 Fourth Quarter and Full Year Conference Call. [Operator Instructions] I would now like to introduce your host for today's conference, Tim Smith, Director of Investor Relations.
Good morning, everyone. I would like to welcome you to Celgene's Fourth Quarter 2010 Conference Call. The press release reporting our fourth quarter 2010 financial and operating results was issued earlier this morning and is also available on our corporate website. In addition, today's conference call webcast will include a presentation which you can access by going to the Investor Relations section of our website at www.celgene.com.
Joining me in the room today are Dr. Jean-Pierre Bizzari, Senior Vice President, Clinical Development, Oncology; Mark Alles, our President of the Americas; Jackie Fouse, our Chief Financial Officer; and Bob Hugin, our Chief Executive Officer.
Before we start, we want to remind you that our discussions during this conference call will include forward-looking statements. Our actual results, performance or achievements could be materially different from those projected by these forward-looking statements. The factors that could cause actual results, performance or achievements to differ from our forward-looking statements are discussed in our filings with the Securities and Exchange Commission, such as our Form 10-K, 10-Q and 8-K reports. Given these risks and uncertainties, you are cautioned not to place undue reliance on our forward-looking statements.
Also, our discussions during this conference call will include certain non-GAAP financial measures. Non-GAAP financial measures provide investors and management with supplemental measures of operating performance and trends that facilitate comparisons between periods before and after certain items that would not otherwise be apparent on a GAAP basis. Reconciliations of these non-GAAP financial measures to the most comparable GAAP measures are available as part of our earnings releases on Celgene's website at www.celgene.com in the Investor Relations section.
I will now turn the call over to our Chief Financial Officer, Jackie Fouse.
Thank you, Tim. Good morning, everyone. Thank you for joining us on our call this morning. I'll start today with some highlights of our 2010 results for what was a record quarter, as well as a record full year for Celgene. We produced outstanding results with strong growth in both the top and bottom line, while continuing to invest in R&D and our global infrastructure. Our metrics are excellent on all levels, and we have a robust product pipeline that supports a strong sustainable growth trajectory well into the future. Bob will update you on some of our key R&D projects in a moment.
Starting with the top line, non-GAAP total revenue for the fourth quarter was $1.05 billion, a 38% increase over the fourth quarter of 2009. This marks the first time we have surpassed the $1 billion revenue mark on a quarterly basis. Non-GAAP total revenue for the full year 2010 increased 34% year-over-year to $3.6 billion. The strong growth was driven by volume growth in our key products, REVLIMID, VIDAZA, as well as 11 weeks of ABRAXANE sales following the October 15 closing of the Abraxis acquisition. Volume growth continues to be fueled by multiple factors, including share and duration gains, as well as geographic expansion.
Driven by that revenue growth, non-GAAP net income for the fourth quarter rose to $348 million, an increase of 20% over the fourth quarter of 2009. This translates to non-GAAP diluted earnings per share of $0.73, up 18% versus the fourth quarter of 2009. For the full year, non-GAAP diluted EPS was $2.80, an increase of 35% versus 2009. As you can see from these results, we are leveraging our operating model to produce strong EPS growth at the same time as we invest in a robust R&D pipeline, build out our global commercial organization and complete the full integration of Abraxis.
Putting these Q4 and full year 2010 results in the perspective with our quarterly revenues for the past three years, we can see the excellent momentum Celgene generated throughout 2010, even as we grew from our record revenue base in 2009.
Turning to some key individual product results. Fourth quarter REVLIMID net product sales were $708 million, an increase of 42% over the fourth quarter of 2009. On an annual basis, REVLIMID sales increased 45% to $2.47 billion. This growth was driven by share and duration gains in multiple countries, as well as overall continued geographic expansion, as we enter new markets. REVLIMID's sequential quarter growth was 10%.
VIDAZA net product sales for the quarter were $140 million, an increase of 20% from the year-ago quarter, and global VIDAZA annual growth was 38%.
ABRAXANE sales for the quarter, as from the October 15 closing date of the acquisition, were $71 million. We are excited about the ongoing launch of our oncology franchise and the opportunity for ABRAXANE in patients with metastatic breast cancer. Bob will discuss this opportunity further during his remarks.