Celgene’s CEO Presents at JP Morgan Conference Notes

http://seekingalpha.com/insight/earnings-center/article/3803236-celgene-corporations-celg-ceo-presents-at-the-34th-annual-j-p-morgan-healthcare-conference-transcript?part=single

Bob Hugin

Macro doesn’t effect our industry, where scientific advances are meaningful

I was thinking about this whole mission and vision when Carlos was speaking and the year is off to a somewhat challenging start with the implications of concerns about the transformation of the Chinese economy and the reverberations in equity markets. But I do have to tell you that I don’t think those reverberations and those short-term implications can mask the underlying strength of our industry. The type of scientific advances are accelerating and are meaningful.”

It is no doubt the dawning of the decade of molecular biology and information technology

“The impact on patients over the next decade, we think about this coming decade, it is no doubt the decade or the dawning of the decade of — the impact of molecular biology combined with information technology.”

Building a good pipeline is about understanding where you have a competitive advantage

“it’s all based on the focus on internal excellence. Understand where you have competitive advantage. And we think we have great expertise internally in cancer stem cells, immuno oncology, epigenetics, protein homeostasis, immunology generally, and with the context of next generation biologics, modalities being applied to all of those areas.”

Important to work with external partners too

“when we put out pipeline together internal and external, it’s more than double what it would be if we were focused on these exciting areas of technological promise alone. But its not just it — of in terms of just an additive, it is synergistic and the probability of success for all of us is greater because we work together. We have high expectations in 2016 in advancing this pipeline. ”

Dynamic companies don’t just manage their portfolios, they lead

“Dynamic companies don’t just manage their portfolios, but they lead, and they challenge their leaders, and they challenge their teams. They stretch their teams. They stretch their leaders. And they also capitalize on the incredible strength and experiences of their leaders”

Celgene at UBS Healthcare Conference Notes

A digest of some of the top insights that I’ve gathered from this week’s earnings calls.  Full notes can be found here.

Mission:

“our mission is and what our vision is and that is to continue to build a great biopharmaceutical company, focused on oncology, hematology and now immune and inflammatory diseases as well”

30 ongoing trials

“We also have a very unique R&D capability. We’ve done a lot of work internally in hematology, oncology, and many other products on the market, certainly all of them on the market. And those in our pipeline come from our own internal portfolio with a very rich pipeline of probably over 30 trials ongoing, certainly in Phase III and moving to the market.”

Focus on unmet needs

“the business model is one that we feel very good about. It is initially looking at those unmet medical needs. Where can we have a transformative impact on a disease, on patients, and with that coming up with differentiated products out of our own pipeline, those of our partners, leveraging the infrastructure that we’ve built on the hematology side, the oncology side, now in I&I, to ultimately develop those products, get them approved, gain pricing and reimbursement and move those products and those therapies to patients.”

Bring the drugs to market, reinvest in more products

“And once we do, it’s the execution in the marketplace that we’ve done very well in the hematology side, on oncology and now we’re doing in I&I that just completes that virtuous cycle that allows us then to take some share of those revenues, reinvest them into more development of products and continue to bring products onto the market. ”

Products driving 13B-$14B in revenue in 2017

“REVLIMID forecasted in 2017 to be a $7 billion drug in multiple myeloma, mantle cell lymphoma and another — number of other hematological malignancies. POMALYST/IMNOVID, our follow-on product that was introduced in the US and also in Europe, we see at $1.5 billion by 2017. So the hematology franchise continuing to execute well with the core products. In ABRAXANE, on the solid tumor side, anywhere from $1.5 billion to $2 billion with certainly the breast, the lung cancer and now the pancreatic cancer indications. OTEZLA, our newest marketed product, $1.5 billion to $2 billion also in 2017, and I’ll now tell you in a moment how we’re going to get there. So 2017, $13 billion to $14 billion in sales by that period of time.”

How to grow the company beyond 2017

“How do we continue to grow Celgene beyond 2017 into the 2020s and beyond. We believe Celgene will be a Company for generations to come and it is about the pipeline. We’ve been very active on the external development front over the last several years with the strategy of identifying areas where we want to be a significant player and can’t do that on our own. Well, we need to access the expertise of partners, of companies who are focused in a particular area of expertise. Folks like Agios in cancer metabolism; Epizyme in epigenetics; FORMA in protein homeostasis; ABRAXANE, Acceleron and others who have the expertise in a specific area that we could never assemble at Celgene on our own”

Leverage capabilities in discovery, development, approval and market access

“partnering with those folks will allow us to leverage not only our own internal capabilities in discovery, but importantly in development and approval and market access, but the partner’s expertise in a particular technical area.”