- Celgene held its 3q2011 earnings call on 10/27 - click here for transcript.
- CELG is partnered with LGND for CC-930 and sells Vidaza, the key competitor for Dacogen from ASTX.
- See the Upcoming Events page for notes and catalysts for companies I cover and see the Partnerships page for notes from larger company conference calls that is relevant to stocks I follow.
Note that the program partnered with LGND was not discussed on this conference call, but it did recently receive Orphan Drug designation in both the US and EU.
Snips of discussion about Vidaza can be found below- helpful in context of discussion on Astex webcasts about Dacogen and the hypomethylator market for MDS in general.
"90% of third quarter revenue growth year-over-year came from volumes [ie, the other 10% came from price increases]. REVLIMID and VIDAZA continue to perform extremely well, and VIDAZA grew in the U.S. despite the loss of exclusivity back in May"
"VIDAZA growth continues to be propelled by exceptional growth outside the U.S. and the product grew overall by 35% in the quarter on a year-over-year basis"
"VIDAZA grew by 10% in the U.S. despite the loss of exclusivity and growth outside the U.S. was outstanding with 58% growth as markets like the U.K., Australia and Japan ramped up their sales following approvals earlier this year. Sales in Japan were particularly strong in the third quarter. As a reminder, these depends on our local partners buying pattern"
"We are increasing total revenue to a range of $4.8 billion to $4.85 billion, including that we now do not expect to see a generic competitor to VIDAZA in 2011"
"Third quarter VIDAZA sales are a clear demonstration of our commercial capabilities. Our teams are maintaining excellent momentum in key international markets, including the United Kingdom, Canada, Japan and Australia. Sequential quarterly sales grew 18%, to $191 million, up 35% year-over-year. Importantly, international sales grew 58% year-over-year. As Jackie outlined, a generic entrant did not launch in the U.S. market during the quarter. Expanding our global leadership position and franchise opportunity, MDS is a poor [transcription error I think?] strategic imperative"
Vidaza data will be presented at ASH in December.
Question and answer sesison:
"Ryan Martins - Lazard Capital Markets LLC, Research Division
It looks like you had a very quarter the days of this 3Q. You said you don't expect the generic for the rest of the year. But what's your thinking around 2012 in terms of a generic coming in?
Robert J. Hugin
Yes. I mean, obviously, the longer there isn't a generic filing, the better it is for us. But we are not in possession of any information that is uniquely available to us on the issue. So we continue to monitor the market closely, but again, we don't have any information that's available to us and not available to others. But we're optimistic that VIDAZA will continue to be, for at least of certain period of time, an attractive part of the revenue model...
Mark Alles
And I think the important part is as time goes by, the international footprint for VIDAZA becomes bigger and bigger, that's a big message from the quarter. And in fact, we see this brand internationally with the time and investment we're still making in it. Being a meaningful contributor despite, or if there is a generic entrant at some point.
Jacqualyn A. Fouse
Yes, and if I can just remind everybody as well that the VIDAZA incremental contribution for the full-year 2011 from the lack of a generic entrant is probably something on the order of $0.07, $0.08, $0.09, depends a little bit of what you assume for the margin on that product and the tax rate. But the incremental dollars are taxed at a higher rate in the U.S. So and if you look at a full year, it's probably more like a $0.10 to $0.12 distributor.
Snips of discussion about Vidaza can be found below- helpful in context of discussion on Astex webcasts about Dacogen and the hypomethylator market for MDS in general.
"90% of third quarter revenue growth year-over-year came from volumes [ie, the other 10% came from price increases]. REVLIMID and VIDAZA continue to perform extremely well, and VIDAZA grew in the U.S. despite the loss of exclusivity back in May"
"VIDAZA growth continues to be propelled by exceptional growth outside the U.S. and the product grew overall by 35% in the quarter on a year-over-year basis"
"VIDAZA grew by 10% in the U.S. despite the loss of exclusivity and growth outside the U.S. was outstanding with 58% growth as markets like the U.K., Australia and Japan ramped up their sales following approvals earlier this year. Sales in Japan were particularly strong in the third quarter. As a reminder, these depends on our local partners buying pattern"
"We are increasing total revenue to a range of $4.8 billion to $4.85 billion, including that we now do not expect to see a generic competitor to VIDAZA in 2011"
"Third quarter VIDAZA sales are a clear demonstration of our commercial capabilities. Our teams are maintaining excellent momentum in key international markets, including the United Kingdom, Canada, Japan and Australia. Sequential quarterly sales grew 18%, to $191 million, up 35% year-over-year. Importantly, international sales grew 58% year-over-year. As Jackie outlined, a generic entrant did not launch in the U.S. market during the quarter. Expanding our global leadership position and franchise opportunity, MDS is a poor [transcription error I think?] strategic imperative"
Vidaza data will be presented at ASH in December.
Question and answer sesison:
"Ryan Martins - Lazard Capital Markets LLC, Research Division
It looks like you had a very quarter the days of this 3Q. You said you don't expect the generic for the rest of the year. But what's your thinking around 2012 in terms of a generic coming in?
Robert J. Hugin
Yes. I mean, obviously, the longer there isn't a generic filing, the better it is for us. But we are not in possession of any information that is uniquely available to us on the issue. So we continue to monitor the market closely, but again, we don't have any information that's available to us and not available to others. But we're optimistic that VIDAZA will continue to be, for at least of certain period of time, an attractive part of the revenue model...
Mark Alles
And I think the important part is as time goes by, the international footprint for VIDAZA becomes bigger and bigger, that's a big message from the quarter. And in fact, we see this brand internationally with the time and investment we're still making in it. Being a meaningful contributor despite, or if there is a generic entrant at some point.
Jacqualyn A. Fouse
Yes, and if I can just remind everybody as well that the VIDAZA incremental contribution for the full-year 2011 from the lack of a generic entrant is probably something on the order of $0.07, $0.08, $0.09, depends a little bit of what you assume for the margin on that product and the tax rate. But the incremental dollars are taxed at a higher rate in the U.S. So and if you look at a full year, it's probably more like a $0.10 to $0.12 distributor.
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