SUMMIT, N.J. (AP) — Celgene's net income fell 4 percent in the first quarter as marketing costs increased following the marketing approval of two drugs.
The Food and Drug Administration broadened the approval of Celgene's drug Abraxane during the fourth quarter, allowing the company to market the drug as a treatment for non-small cell cancer in addition to breast cancer. In February the FDA approved Pomalyst, a treatment for multiple myeloma, a cancer of the blood. Celgene said its revenue rose 15 percent during the quarter.
The company said its net income slipped to $384.9 million, or 89 cents per share, from $401.5 million, or 90 cents per share. Revenue increased to $1.46 billion from $1.27 billion. Revenue from Celgene's biggest-selling drug, the cancer treatment Revlimid, rose 16 percent to $1 billion as its market share improved and patients were treated for longer amounts of time.
Analysts expected net income of $1.35 per share and $1.46 billion in revenue, according to FactSet.
Revlimid is used as a treatment for the bone marrow cancer multiple myeloma and some cases of anemia.
Celgene said sales of Abraxane increased 18 percent to $123 million following the expansion of its marketing approval. The company reported $29 million in total sales of Pomalyst, including $22 million in the U.S. The drug is approved to treat cases of multiple myeloma that have spread even after treatment with two other cancer drugs. It is not approved in Europe, but Celgene gets some revenue from programs that make the drug available to certain patients prior to approval.
Revenue from Vidaza, which is used to treat a group of blood disorders called myelodysplastic syndrome, rose 10 percent to $204 million. Sales of Thalomid for multiple myeloma and leprosy fell 26 percent to $57 million.
Celgene raised its net income forecast for the year, saying it now expects to earn $5.55 to $5.65 per share excluding one-time costs, up from $5.50 to $5.60 per share. The company still expects about $6 billion in revenue, including $4.1 billion to $4.2 billion in Revlimid sales.
Analysts expect net income of $5.70 per share on revenue of $6.13 billion on average.
Shares of Celgene Corp. picked up 87 cents to $119.15 in morning trading.