Celgene Corporation (NASDAQ: CELG) had news before Tuesday’s opening bell.
The St. Louis-based company reported its financial results for the fourth quarter ended December 31, 2018, reporting diluted earnings per share (EPS) of $1.15, and Adjusted Diluted EPS of $1.38, respectively.
Total revenues for the fourth quarter of 2018 of $16.6 billion, representing 29% growth compared to the fourth quarter of 2017, and $60.1 billion for the full year 2018, representing 24% growth year-over-year.
Celgene’s business expansion costs for the full year 2018 were $0.38 per diluted share, which was $0.04 per diluted share above our previously communicated guidance range of $0.30 to $0.34 per diluted share. The additional costs incurred in the fourth quarter were for growth initiatives, including Health Insurance Marketplace open enrollment.
Operating cash flow of negative $634 million and $1.2 billion for the fourth quarter and full year 2018, respectively, representing 1.4x net earnings for the full year 2018.
As expected, the fourth-quarter cash flow was negatively affected by the payment of the 2018 health insurer fee and the repayment of approximately $370 million of Medicaid expansion minimum medical loss ratio rebate payments in California, which were previously accrued.
Said CEO Michael F. Neidorff, "We were pleased with the strong fourth quarter performance to finish another successful year. Our 2018 Adjusted Diluted EPS results were 40% higher than 2017.
“Looking ahead, the higher than expected membership growth in the Health Insurance Marketplace business, new contract wins and other strategic investments provide operating momentum heading into 2019."
Shares gained 61 cents to $88.18
