X Celgene (CELG) stock toppled Thursday after the No. 2 biotech missed Otezla sales expectations by $95 million, leading to overall revenue that came in about $80 million light, though profits topped views by a nickel.
On the stock market today, Celgene stock was down 1% to 123.97 after earlier dipping as much as 2.5%. Shares are forming a flat base with a possible buy point at 127.74.
For the first quarter ended March 31, Celgene reported $2.96 billion in sales, up 18% vs. the year-earlier period, but that lagged the consensus for $3.04 billion. Adjusted profits of $1.68 per share climbed 27% and topped views by 5 cents.
Among its key products, multiple myeloma drugs Pomalyst and Imnovid grew 33% to $364 million in sales. Cancer drugs Revlimid and Abraxane grew 20% to $1.88 billion in sales and 5% to $236 million, respectively.
Otezla, a drug for psoriasis and psoriatic arthritis, grew 24% to $242 million in sales. But that lagged analysts for $337 million, Mizuho analyst Salim Syed noted in a research report. He kept his buy rating and 130 price target on Celgene stock, noting the biotech expanded its share in psoriasis vs. the prior quarter.
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"The company cited market contractions in psoriasis and psoriatic arthritis in the U.S., increased gross to net adjustments and a small inventory drawdown," for the first-quarter miss in Otezla sales. In the U.S., Otezla brought in $199 million, up 14%. International sales grew 105% to $43 million.
Celgene raised its 2017 adjusted earnings per share target to $7.15-$7.30, up from earlier views for $7.10-$7.25 and in line with consensus expectations for $7.22. Celgene also expects to have data in a Phase 3 study for multiple sclerosis drug Ozanimod before the end of the second quarter.
Also Thursday, AstraZeneca (AZN) topped earnings views, and had in-line sales. Alexion Pharmaceuticals (ALXN), Bristol-Myers Squibb (BMY) and AbbVie (ABBV) topped both metrics. Acorda Therapeutics (ACOR) had an all-around miss.
Late Wednesday, Amgen (AMGN) reported better-than-expected earnings but sales that fell short. Amgen shares dropped 1.15% to 162.72 after hitting 160 soon after the open. Early Tuesday, Biogen (BIIB) topped earnings and sales forecasts. Biogen fell 1.2% to 276.57 on Thursday.
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