Celgene Reports Record Second Quarter Product Sales and Operating Profits.2007 Second Quarter Financial Results Year-Over-Year: * Total Revenue Increased 76 Percent To $348 Million * Product Sales Increased 81 Percent To $319 Million * REVLIMID([R]) Net Product Sales Increased 187 Percent To $181 Million * THALOMID([R]) Net Product Sales Totaled $118 Million * Adjusted Operating Income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. Increased 143 Percent To $130 Million * Adjusted Net Income Increased 160 Percent To $110 Million * Adjusted Earnings Per Share Increased 136 Percent To $0.26 Per Diluted Share 2007 Financial Outlook: * Total Revenue Targeted To Increase To A $1.4 Billion Range * Adjusted Diluted Earnings Per Share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of Targeted To A Range of $1.00 to $1.05 Recent Highlights: * REVLIMID Granted Full Marketing Authorization From European Medicines Agency The European Medicines Agency (EMEA) is a European agency for the evaluation of medicinal products. Until 2004, the European Medicines Agency was known as The European Agency for the Evaluation of Medicinal Products. Roughly parallel to the U.S. for Use In Combination With Dexamethasone dexamethasone /dex·a·meth·a·sone/ (dek?sah-meth´ah-son) a synthetic glucocorticoid used primarily as an antiinflammatory in various conditions, including collagen diseases and allergic states; it is the basis of a screening test in the As A Treatment For Patients With Multiple Myeloma multiple myeloma A malignant proliferation of abnormal plasma cells that populate the marrow-containing bones of the body. The affected plasma cells produce myeloma protein, a monoclonal antibody that replaces normal antibodies in the blood, thereby increasing susceptibility Who Have Received At Least One Prior Therapy * Positive Clinical Data On CC-10004 Confirmed Potential As Novel Oral Approach To Treating Inflammatory Diseases * Over 140 Abstracts On Data Highlighting REVLIMID, THALOMID And CC-4047 At Major International Medical Meetings * At ASCO ASCO American Society of Clinical Oncology ASCO Association of Schools and Colleges of Optometry (since 1941; Rockville, Maryland) ASCO Australian Standard Classification of Occupations ASCO Automatic Switch Company 2007, Preliminary Data From The National Cancer Institute Sponsored ECOG ECOG Eastern Cooperative Oncology Group (E4A03) Phase III Trial Reported Survival Advantage For Patients Newly Diagnosed With Multiple Myeloma With REVLIMID Plus Low-Dose Dexamethasone * REVLIMID Multiple Myeloma And MDS MDS, n See temporomandibular pain-dysfunction syndrome. MDS 1 Maternal deprivation syndrome, see there 2 Myelodysplastic syndrome, see there Clinical Programs Advanced In Japan, The Third Largest Healthcare Market In The World * On June 12, 2007 U.S. Patent 7,230,012 Was Issued Further Broadening The Intellectual Property Estate Around Our THALOMID Franchise 2007 Milestones: * Execute REVLIMID([R]) European Launches Following Price, Reimbursement And Distribution Approvals In Each Country * Advance International REVLIMID Regulatory Programs in Japan, Canada, Australia, Switzerland, Israel and ROW * Advance REVLIMID In Key NHL NHL Non-Hodgkin's lymphoma, see there & CLL CLL abbr. chronic lymphocytic leukemia CLL, n.pr See leukemia, chronic lymphocytic. CLL 1. Chronic lymphocytic leukemia 2. Cholesterol-lowering lipid Trials * Advance CC-10004 And CC-11050 In Anti-Inflammatory Indications * REVLIMID Clinical Data From Newly Diagnosed Multiple Myeloma Trials To Be Reported to be spoken of; to be mentioned, whether favorably or unfavorably. See also: Report At Major Medical Meetings and Peer-Reviewed Publications * Advance CC-4047 In Hematological Malignancies And Solid Tumor Cancers, Including Clinical Trial in Relapsed/Refractory Multiple Myeloma * Evaluate CC-11006 In MDS And Hematological Malignancies SUMMIT, N.J. -- Celgene Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CELG) announced adjusted net income of $110.4 million, or adjusted earnings per diluted share of $0.26 for the quarter ended June 30, 2007. Based on U.S. Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ), Celgene reported net income of $54.9 million, or diluted earnings per share of $0.13 for the quarter ended June 30, 2007, including after-tax share-based employee compensation expense of $12.7 million, compared to net income in the prior year period of $9.6 million or diluted earnings per share of $0.03, including after-tax share-based employee compensation expense of $20.7 million. Total revenue was a record $347.9 million for the quarter ended June 30, 2007, an increase of 76.4% over the same period in 2006. The increase in total revenue was driven by REVLIMID net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of $180.9 million, an increase of 187.2% over the same period in 2006. THALOMID([R])net sales reached $117.7 million. ALKERAN([R]) net sales for the second quarter of 2007 were $18.7 million compared to $4.5 million in the second quarter of 2006. Revenue from Focalin[TM] and the Ritalin([R]) family of drugs totaled $24.8 million for the second quarter of 2007 compared to $17.7 million over the same period last year. For the six-month period of 2007, total revenue was a record $641.3 million, an increase of 69.2% year-over-year. Total net product sales reached a record $588.7 million, an increase of 74.9% year-over-year. REVLIMID net sales for the six-month period of 2007 reached $327.2 million compared to $95.5 million in 2006. THALOMID net sales for the six-month period of 2007 were $223.7 million compared to $214.4 million in 2006. Celgene posted adjusted net income of $196.1 million or adjusted earnings per diluted share of $0.46 during the six-month period of 2007, compared to adjusted net income of $76.2 million or adjusted earnings per diluted share of $0.20 for the six-month period of 2006. For the six-month period of 2007 on a U.S. GAAP basis, Celgene reported net income of $112.3 million or earnings per diluted share of $0.27, compared to net income of $25.6 million or earnings per diluted share of $0.07 in 2006. See the attached Condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. Consolidated Statements of Operations and Reconciliation of GAAP Earnings to Adjusted Earnings for an explanation of the amounts excluded and included to arrive at adjusted net income, adjusted per share amounts and adjusted pro-forma income tax rate, for the three-month and six-month periods ended June 30, 2007 and 2006. Adjusted or Non-GAAP financial measures provide investors and management with supplemental measures of operating performance and trends that facilitate comparisons between periods before, during and after certain items that would not otherwise be apparent on a GAAP basis. Certain unusual or non-recurring items that management does not believe affect the Company's basic operations do not meet the GAAP definition of unusual or non-recurring items. Adjusted net income and adjusted earnings per share are not, and should not be viewed as a substitute for similar GAAP items. We define adjusted diluted earnings per share amounts as adjusted net income divided by the GAAP weighted average number of diluted shares outstanding. Our definition of adjusted net income and adjusted diluted earnings per share may differ from similarly named measures used by others. To support clinical development and to advance global regulatory filings the Company increased R&D investments in multiple international clinical programs evaluating REVLIMID([R]) and other IMIDs([R]) compounds. For the second quarter of 2007, the Company incurred adjusted R&D expenses of $86.6 million. These R&D expenditures support ongoing clinical progress in multiple proprietary development programs for REVLIMID and other IMiDs compounds; for our lead oral anti-inflammatory compounds; our pleiotropic pathway modifier (programming) modifier - An operation that alters the state of an object. Modifiers often have names that begin with "set" and corresponding selector functions whose names begin with "get". program; as well as our kinase and ligase ligase /li·gase/ (li´gas) (lig´as) any of a class of enzymes that catalyze the joining together of two molecules coupled with the breakdown of a pyrophosphate bond in ATP or a similar triphosphate. inhibitor programs and placental-derived stem cell stem cell In living organisms, an undifferentiated cell that can produce other cells that eventually make up specialized tissues and organs. There are two major types of stem cells, embryonic and adult. program. On a GAAP basis, R&D expenses were $89.9 million for the second quarter of 2007. Adjusted selling, general and administrative expenses increased to $103.3 million for the second quarter in 2007. SG&A include increased spending for marketing and sales expenses related to product launch activities in Europe and continued expansion of Celgene International in nearly 35 countries, including Europe, Japan, Australia and Canada. Marketing and sales expenses are expected to remain flat in the third and fourth quarters of 2007. On a reported GAAP basis, selling, general and administrative expenses were $114.0 million for the second quarter in 2007. For the quarter ended June 30, 2007, adjusted net interest and other net income (expense) increased to $23.6 million from $7.7 million over the same period in 2006. Celgene reported more than $2.3 billion in cash and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has as of June 30, 2007, an increase of $207 million over the sequential quarter ended March 31, 2007. "This was a historic quarter by all measures underscored by extraordinary financial and operational results," said Celgene Chairman and Chief Executive Officer Sol J. Barer. "We are building a world leading hematology-oncology Company with a major presence in inflammatory diseases. As a result of the strong momentum established in the second quarter we have made significant progress towards accomplishing that mission." Webcast Celgene will host a conference call to discuss the results and achievements of its second quarter 2007 operating and financial performance on July 26, 2007 at 9:00 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . The conference call will be available by webcast at www.celgene.com. An audio replay of the call will be available from noon EDT July 26, 2007 until midnight EDT August 2, 2007. To access the replay, dial 1-888-203-1112 and enter reservation number 5815904. The Company's third quarter 2007 financial and operational results will be reported on Thursday, October 25, 2007. About Celgene Celgene Corporation, headquartered in Summit, New Jersey, is an integrated global biopharmaceutical company engaged primarily in the discovery, development and commercialization of novel therapies for the treatment of cancer and inflammatory diseases through gene and protein regulation. For more information, please visit the Company's website at www.celgene.com. This release contains certain forward-looking statements which involve known and unknown risks, delays, uncertainties and other factors not under the Company's control, which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or other expectations implied by these forward-looking statements. These factors include results of current or pending research and development activities, actions by the FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. and other regulatory authorities, and those factors detailed in the Company's filings with the Securities and Exchange Commission such as Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , 10-Q and 8-K reports. 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