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Celgene Admits It Screwed Up Otezla Estimates; Investors Lose Confidence

 
• By Mandy Jackson

Q3 revenue grew 10% to $3.29bn, but came in below consensus, mostly due to Otezla. The blockbuster drug's new reality and recent GED-0301 failure in Crohn's disease contributed to Celgene's decision to lower guidance for both 2017 and 2020.

Glass broken cracks splinters

CEO Mark Alles started Celgene Corp.'s third quarter earnings call with a mea culpa, admitting that the company's estimates for Otezla (apremilast) – the cornerstone of its inflammation and immunology franchise – "did not adequately anticipate" psoriasis and psoriatic arthritis market realities.

Confidence in Celgene's forecasting abilities was understandably shaken on Oct. 26, since just three months earlier executives spent a good part of the company's second quarter call reassuring analysts and investors that a quarter-over-quarter dip in Otezla sales during the first quarter had been corrected. (Also see "Celgene Eases Angst Over Otezla, Sets The Stage For Growth" - Scrip, 28 July, 2017

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