Q2 2017 Conference Call - s24.q4cdn.com€¦ · Q2 2017 Conference Call Mark Alles, Chief Executive...

Q2 2017 Conference CallJuly 27, 2017

CHANGING THE COURSE OFHUMAN HEALTH THROUGH BOLD

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Q2 2017 Conference CallQ2 2017 Conference Call

Mark Alles, Chief Executive Officer

Terrie Curran, President, I&I

Scott Smith, President & Chief Operating Officer

Q&A

Michael Pehl, President, Hematology/Oncology

Peter Kellogg, Chief Financial Officer

2

Forward Looking Statements and Adjusted Financial InformationForward Looking Statements and Adjusted Financial Information

3

This presentation contains forward-looking statements, which are generally statements that are not historical facts.Forward-looking statements can be identified by the words “expects,” “anticipates,” “believes,” “intends,” “estimates,”“plans,” “will,” “outlook,” “targets” and similar expressions. Forward-looking statements are based on management’scurrent plans, estimates, assumptions and projections, and speak only as of the date they are made. We undertake noobligation to update any forward-looking statement in light of new information or future events, except as otherwiserequired by law. Forward-looking statements involve inherent risks and uncertainties, most of which are difficult to predictand are generally beyond our control. Actual results or outcomes may differ materially from those implied by the forward-looking statements as a result of the impact of a number of factors, many of which are discussed in more detail in ourAnnual Report on Form 10-K and our other reports filed with the Securities and Exchange Commission.

In addition to unaudited financial information prepared in accordance with U.S. GAAP, this presentation also containsadjusted financial measures. Further information relevant to the interpretation of adjusted financial measures, andreconciliations of these adjusted financial measures to the most comparable GAAP measures, may be found in theAppendix and on our website at www.Celgene.com in the “Investor Relations” section.

Mark AllesChief Executive Officer


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Strong H1 2017 Driven by Execution and Portfolio MomentumStrong H1 2017 Driven by Execution and Portfolio Momentum

Momentum from Commercial and Clinical Portfolio− Operational excellence across functions and geographies− Advanced clinical portfolio; 5 Ph III trials completed enrollment in Q2:17

Significant Pipeline Catalysts in Place− Ozanimod Ph III RMS data presentation in H2:17− Top-line data from 3 Ph III trials by YE:17: AUGMENTTM, RELEVANCE® and apact®

Adding Strategic Opportunities for Growth Beyond 2020− Positive ozanimod Ph III trials in RMS anchors emerging neuroscience platform− Collaboration with BeiGene for BGB-A317 expands and complements existing I/O platform

5

Peter KelloggChief Financial Officer


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Q2 2017 Financial HighlightsQ2 2017 Financial Highlights

Exceptional Operating Results− Q2:17 year-over-year net product sales grew 19% and adjusted diluted EPS grew 26%− Adjusted operating margins improved by 490 bps Y/Y

Strong Execution on Marketed Portfolio− Robust Q2 performance across the portfolio; OTEZLA® up 49% Y/Y, 48% Q/Q− Growth continues from volume; 16 of the 19 percentage points of net product sales growth

Balanced Capital Deployment− $507M in shares repurchased in Q2:17− Expanded oncology focus with BeiGene collaboration

7

2017 Adjusted EPS and Operating Margin Updated− 2017 adjusted diluted EPS raised from $7.15-$7.30 to $7.25-$7.35− Adjusted operating margin raised from ~57% to ~57.5%, +50 bps

Q2 2017 Total Net Product SalesQ2 2017 Total Net Product Sales

Q2:15 Q2:16 Q2:17

$2,254

$2,744

$3,256

$ M

illio

ns

↑22% ↑22% ↑19%

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

Q2:16 Volume Price Fx /Hedge

Q2:17

↑18.7%↓0.7%↑15.9% ↑3.5%

Contribution to Q2:17 Total Net Product Sales Growth

$ M

illio

ns

Total Net Product Sales

8Footnote: Growth Rates = Growth vs. Prior Year PeriodCertain prior year amounts have been rounded +/- $1M to conform to the current year rounding convention.

Q2 2017 Adjusted Diluted Earnings Per ShareQ2 2017 Adjusted Diluted Earnings Per Share

$1.23

$1.44

$1.82

Q2:15 Q2:16 Q2:17

↑37% ↑17%

Dol

lars

Per

Sha

re

↑26%

Q2:16 Oper. Income

OIE Tax Rate Share Count

Q2:17

Dol

lars

Per

Sha

re

$1.82$0.46$1.44 ($0.01) ($0.02)($0.05)

9

Contribution to Q2:17 Adjusted Diluted EPSAdjusted Diluted EPS

Footnote: Growth Rates = Growth vs. Prior Year Period

Key P&L Line Items (Adjusted)Key P&L Line Items (Adjusted)

Q2:17 ∆ vs.Q2:16

∆ vs.Q1:17

Product Gross Margin 96.8% ↑50 bps ↑40 bps

R&D expenses% of revenue

$690M21.1% ↓70 bps ↑100 bps

SG&A expenses% of revenue

$532M16.3% ↓360 bps ↓190 bps

Operating Margin 59.5% ↑490 bps ↑140 bps

Effective Tax Rate 16.5% ↑30 bps NC

10

Cash and Marketable SecuritiesCash and Marketable Securities

Cash flow from operations was approximately $1.6B during Q2:17

In Q2:17, purchased $507M of shares– $3.9B remaining under existing stock repurchase program

(in Billions) 6/30/17 12/31/16

Cash and Marketable Securities $10.14 $7.97

11

Return On Invested Capital (ROIC): Focused on Efficient GrowthReturn On Invested Capital (ROIC): Focused on Efficient Growth

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

2009 2010 2011 2012 2013 2014 2015 2016 Q2 2017 (TTM)

Capital Base Excluding Cash* Capital Base ROIC Excluding Cash* ROIC

$ B

illio

n

Average Invested Capital

ROIC

*For purposes of this calculation, cash includes cash and cash equivalents and marketable securities available for sale.

Footnote: Financial performance is based on GAAP operating income adjusted to reflect amortization of certain charges excluded from 2008 calculation and tax impact. Calculation for 2015 includes expenses driven by the Juno Therapeutics and AstraZeneca collaborations and expenses incurred in connection with the acquisition of Receptos as well as the impact of the August 2015 debt issuance on the capital base. Refer to reconciliation tables for complete calculation methodology. Calculation revised in 2015 for all prior periods to reflect amortization of certain charges excluded from 2008 calculation.

12

Updating 2017 GuidanceUpdating 2017 Guidance

Previous Updated

Net Product Sales

REVLIMID® $8.0B-$8.3B Unchanged

POMALYST®/IMNOVID® ~$1.6B Unchanged

OTEZLA® $1.5B-$1.7B Unchanged

ABRAXANE® ~$1.0B Unchanged

Total Revenue $13.0B-$13.4B Unchanged

Adjusted Operating Margin ~57% ~57.5%

Adjusted Diluted EPS $7.15-$7.30 $7.25-$7.35

Weighted Average Diluted Shares ~815M Unchanged13

Michael PehlPresident, Hematology/Oncology


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Q2 2017 Hematology/Oncology Franchise ResultsQ2 2017 Hematology/Oncology Franchise Results

15

Strong Net Product Sales and Operating Momentum− Q2:17 net product sales growth of +16% Y/Y− Sales performance driven by strong uptake in key markets

2017 Growth Drivers On Track− Ongoing REVLIMID® NDMM NSCT launch and increasing use of approved triplets driving share and

duration around the globe− U.S. regulatory decision for IDHIFA® (enasidenib) in IDH2 mutant rrAML expected in August− Ph III data on REVLIMID® in indolent lymphoma and ABRAXANE® in adjuvant PanC by YE:17

Transformational Pipeline Advancing with Future Growth Drivers− Collaboration with BeiGene for BGB-A317 expands immuno-oncology portfolio− Early- and mid-stage pipeline continues to advance with pivotal programs beginning by YE:17

Current Results & Potential Future Growth Drivers

Q2 2017 REVLIMID® Net Sales Summary Q2 2017 REVLIMID® Net Sales Summary

• Q2:17 net sales $2,034M; +20% Y/Y, +8% Q/Q• Ongoing NDMM launch continues to advance

– REVLIMID® NDMM NSCT reimbursed in 22 countries– NDMM NSCT reimbursement in France now expected

in Q3:17• 2017 growth drivers on-track

Maintenance post-ASCT reimbursed in 7 countries; Market share in EU continues to grow

Increased adoption of triplet combinations in RRMM• Potential future growth drivers advancing

– Ph III AUGMENTTM & RELEVANCE® data expected YE:17

– Ph III ROBUST® trial completed enrollment; Data expected in 2018

– U.S. regulatory submission for RVd in 1st line transplant and non-transplant candidates moved to Q1:18

$716$872

$1,079$1,358

$497 $572

$621

$676

Q2:14 Q2:15 Q2:16 Q2:17

U.S. ROW

$1,213

$1,444

$1,700

$2,034

16

Net Sales ($M)

Certain prior year amounts have been rounded +/- $1M to conform to the current year rounding convention.

24%

0%

5%

10%

15%

20%

25%

30%

35%

Q1:15 Q2:15 Q3:15 Q4:15 Q1:16 Q2:16 Q3:16 Q4:16 Q1:17

Source: EU Q2:17 MM Patient Chart tracker topline shares

EU4

EU4 (FR, GER, SP, IT)

1st Line NSCT REVLIMID® New Patient Share –EU4 (France, Germany, Spain, Italy)

1st Line NSCT REVLIMID® New Patient Share –EU4 (France, Germany, Spain, Italy)

Germany Reimbursement

Spain Reimbursement

ItalyReimbursement

France Reimbursement Publication Expected

Q3:17

17

REVLIMID® Continues Uptake in 1st Line Non-Stem Cell Transplant Eligible Patients in EuropeREVLIMID® Continues Uptake in 1st Line Non-Stem Cell Transplant Eligible Patients in Europe

New

Pat

ient

Sha

re


Q2 2017 REVLIMID® Net Sales Summary Q2 2017 REVLIMID® Net Sales Summary

• Q2:17 net sales $2,034M; +20% Y/Y, +8% Q/Q• Ongoing NDMM launch continues to advance

– REVLIMID® NDMM NSCT reimbursed in 22 countries– NDMM NSCT reimbursement in France now expected

in Q3:17• 2017 growth drivers on-track

Maintenance post-ASCT reimbursed in 7 countries; Market share in EU continues to grow

Increased adoption of triplet combinations in RRMM• Potential future growth drivers advancing

– Ph III AUGMENTTM & RELEVANCE® data expected YE:17

– Ph III ROBUST® trial completed enrollment; Data expected in 2018

– U.S. regulatory submission for RVd in 1st line transplant and non-transplant candidates moved to Q1:18

$716$872

$1,079$1,358

$497 $572

$621

$676

Q2:14 Q2:15 Q2:16 Q2:17

U.S. ROW

$1,213

$1,444

$1,700

$2,034

18

Net Sales ($M)



Q2 2017 POMALYST®/IMNOVID® Net Sales SummaryQ2 2017 POMALYST®/IMNOVID® Net Sales Summary

$104$143

$185$241$57

$91

$133

$150

Q2:14 Q2:15 Q2:16 Q2:17

U.S. ROW

$161

$234

$318

$391

• Q2:17 net sales $391M; +23% Y/Y, +7% Q/Q• POMALYST®/IMNOVID® continues to be a backbone of

therapy in 3rd line+– POMALYST®/IMNOVID® has leading 3rd line share in

U.S. and EU– POMALYST® has leading 3rd line+ share in Japan

• 2017 growth drivers Duration trends increasing across all geographies FDA approval for daratumumab/POMALYST®

combination in RRMM• Potential future growth drivers advancing

Enrollment completed in Ph III OPTIMISMM® trial with POMALYST® in 2nd line+ MM; Data expected in 2018

POMALYST®/IMNOVID® combinations with other novel agents advancing

Net Sales ($M)

19Certain prior year amounts have been rounded +/- $1M to conform to the current year rounding convention.


Q2 2017 ABRAXANE® Net Sales SummaryQ2 2017 ABRAXANE® Net Sales Summary

$159 $170 $174 $161

$56 $75 $75 $93

Q2:14 Q2:15 Q2:16 Q2:17

U.S. ROW

$215

$245 $249 $254

Net Sales ($M)

20

• Q2:17 net sales $254M; +2% Y/Y, +8% Q/Q• 2017 growth drivers

Maintain leadership in first-line metastatic pancreatic cancer in U.S.

Continued share gains in metastatic pancreatic in EU• Potential future growth drivers advancing

Ph III apact® data for ABRAXANE® in adjuvant pancreatic cancer by YE:17

I/O combination trials in NSCLC, TNBC in 2018 Ongoing trials in support of potential label expansions in

pancreatic cancer, lung and breast cancer


BGB-A317 Expands a Robust I/O Portfolio For Hematology and OncologyBGB-A317 Expands a Robust I/O Portfolio For Hematology and Oncology

Hematologic Malignancies

BGB-A317(anti-PD-1)

Bi-Specific T Engager

CAR-TCells

PhagocytosisMacrophage

Immune Modulation

T Cell Checkpoint

Tri-Specific NK Engager

Preclinical Phase II Phase III MarketedPhase I

CC-90002(anti-CD47)

JCAR017(CD19)

bb2121(BCMA)

CC-93269(CD3xBCMA)Novel T-cell

engagers

Selected AML and MM Targets

CC-122CC-220

(CELMoD®)

JTX-2011(anti-ICOS)

OMP-313M32(anti-TIGIT)LYC-55716

(ROR Agonist)

CC-122(CELMoD®)

CC-90002(anti-CD47)

MSC-1(anti-LIF)

Novel Targets

Selected ST Targets

Solid Tumors

CAR-TCells

PhagocytosisMacrophage

Immune Modulation

T Cell Modulation

T Reg Depletion

T Cell Checkpoint

Immune Metabolism

Preclinical Phase II Phase III MarketedPhase I

Celgene has an exclusive option to license JTX-2011, LYC-55716 and OMP-313M32. IMNFINZITM is approved for solid tumors. 21

CC-92480(CELMoD®)

2017 Hematology/Oncology Franchise Outlook2017 Hematology/Oncology Franchise Outlook

22

Commercial Portfolio On Track to Deliver− REVLIMID® continues to show strong uptake and duration trends− POMALYST®/IMNOVID® momentum continues− ABRAXANE® in first-line metastatic PanC is the standard of care

Regulatory Catalysts and Late-Stage Trials Anchor Near-term Growth− REVLIMID® as maintenance therapy post-ASCT approved in U.S. and EU− U.S. regulatory decision for IDHIFA® (enasidenib) in IDH2 mutant rrAML expected in August− On track for Ph III readouts for AUGMENTTM, RELEVANCE® and apact® in H2:17

Mid- and Late-Stage Pipeline Advancing− Completed enrollment in ROBUST®, QUAZAR®, MEDALISTTM and BELIEVETM

− On-track for marizomib, bb2121, JCAR017, CC-122 and durvalumab pivotal programs by YE:17− BeiGene collaboration for solid tumor anti-PD-1

Terrie CurranPresident, I&I


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Q2 2017 I&I Franchise ResultsQ2 2017 I&I Franchise Results

Strong OTEZLA® Performance and Future Growth Drivers Advancing– OTEZLA® adoption increased significantly as global demand and access continue to strengthen– Launches underway in major European markets and Japan – Strengthening of U.S. leadership position in new-to-brand shares for both psoriasis and PsA– Completed enrollment of key lifecycle studies

Ozanimod Moving Forward– Preparing for regulatory submission to the FDA by YE:17– Advancing differentiated efficacy and safety profile– Robust life cycle plan in development

Advancing Development of the I&I Pipeline– Positive results from Ph II ozanimod trial in CD; pivotal trial plans in development– Strong execution of Ph III IBD trials: ozanimod in UC, and GED-0301 in CD

24

$217

$306

$24

$52

Q2:14 Q2:15 Q2:16 Q2:17

U.S. ROW

$90

$241

$358

Q2 2017 OTEZLA® Net Sales Summary Q2 2017 OTEZLA® Net Sales Summary

Net Sales ($M)

25

$85

$5


• Q2:17 net sales $358M; +49% Y/Y, +48% Q/Q• 2017 growth drivers

- Substantial growth in OTEZLA® utilization in the U.S. and international markets

- In France and Japan, uptake surpassing benchmarks• Potential future growth drivers advancing

- Ph III scalp psoriasis trial enrolling- Ph III RELIEF® trial in Behçet's completed enrollment- Ph II POC data in UC expected by YE:17

- 2017 OTEZLA® net sales guidance - $1.5B-$1.7B$5


Brand Fundamentals and Market Growth Driving Pickup of U.S. OTEZLA® SalesBrand Fundamentals and Market Growth Driving Pickup of U.S. OTEZLA® Sales

26

New-to-Brand Share – Psoriasis(Normalized Patient Equivalents)

OTEZLA®

40.3%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

ENBREL STELARA HUMIRACOSENTYX OTEZLA TALTZAcitretin Methotrexate Cyclosporine

Source: SHS claims data through March 2017, last updated 26 May 2017; Symphony prescriber-level data through June 30, 2017Note: Symphony data subject to restatement; NTB includes patients initiating titration and bridge for OTEZLA®

OTEZLA®

21.7%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Jan-

15Fe

b-15

Mar

-15

Apr-

15M

ay-1

5Ju

n-15

Jul-1

5Au

g-15

Sep-

15O

ct-1

5N

ov-1

5D

ec-1

5Ja

n-16

Feb-

16M

ar-1

6Ap

r-16

May

-16

Jun-

16Ju

l-16

Aug-

16Se

p-16

Oct

-16

Nov

-16

Dec

-16

Jan-

17Fe

b-17

Mar

-17

Apr-

17M

ay-1

7Ju

n-17

ENBREL STELARA HUMIRACOSENTYX OTEZLA TALTZ

U.S. Psoriasis Market Share

OTEZLA® Demonstrating Rapid Uptake in Recently Launched Markets OTEZLA® Demonstrating Rapid Uptake in Recently Launched Markets

France: Launch-Aligned New Patient Starts

1,020

2,115

3,003

0

500

1,000

1,500

2,000

2,500

3,000

3,500

m1 m2 m3 m4 m5 m6 m7

Stelara Taltz Cosentyx Otezla

Japan: New-to-Brand Switch (GP Derm Segment)

Source: Gers; Competitor IMS JPM, Otezla® Ex-W/S data; Apremilast KPI tracking survey, April 2017

69%

8%

7%

8%8%

40%

OTEZLA®

38%

4%

3% 8%8%

OTEZLA®

Launch

Topical Only

TIGASON Others

OTEZLA® NEORAL

Biologics

27

New

Pat

ient

Sta

rts

The Global MS Market is Valued at ~$22B However, Significant Unmet Needs and Opportunity RemainThe Global MS Market is Valued at ~$22B However, Significant Unmet Needs and Opportunity Remain

Injectables52%

Orals37%

Infusions11%

2016 MS Market – G7*

Source: Decision Resources. Pharmacor. 2016, EvaluatePharma, Company Earnings Reports*G7 includes U.S., Germany, France, Spain, Italy, UK and Japan

28

Unmet Needs in RMS

• Improved disease control

• Safe and well-tolerated oral options

• Therapies appropriate for long-term use

• Potential to halt and/or reverse disability

Emerging Ozanimod Profile Targets Significant Unmet Needs in RMSEmerging Ozanimod Profile Targets Significant Unmet Needs in RMS

Ozanimod

Reduction in GdE lesionsReduction in GdE lesions

Favorable Cardiac Profile

(HR, QTc)

Favorable Cardiac Profile

(HR, QTc)

Once-dailyOral DosingOnce-daily

Oral Dosing

Generally Well Tolerated

Generally Well Tolerated

Reduced Annualized

Relapse Rate

Reduced Annualized

Relapse Rate

Favorable HepatotoxFavorable Hepatotox

Disability Progression vs. AVONEX®

Disability Progression vs. AVONEX®

Reduction in Brain AtrophyReduction in

Brain Atrophy

Rapid Lymphocyte

Recovery

Rapid Lymphocyte

Recovery

29Ozanimod is an investigational compound that is not approved for use in any country.

Maximize the OTEZLA® PSOR/PsA Opportunity Strong brand fundamentals to drive continued positive momentum with increasing contribution

from international markets Continue to realize benefits of global access expansion Complete U.S. sNDA filing of QD formulation by YE:17 Accelerate enrollment of OTEZLA® Ph III trial in scalp psoriasis

Optimize the Ozanimod Opportunity File ozanimod U.S. NDA in RMS by YE:17 Continue launch-readiness activities Complete enrollment of Ph III trial in UC Prepare to initiate Ph III in CD

Advance Next Stage of Future Growth Catalysts− Ph II trial readouts from OTEZLA® in UC and GED-0301 in UC by YE:17− Continue to execute on the GED-0301 pivotal program in CD− Advance Ph II development of CC-220 in SLE and CC-90001 in IPF

2017 I&I Franchise Outlook 2017 I&I Franchise Outlook

30

Scott SmithPresident and Chief Operating Officer


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2017 Milestones2017 Milestones

Financial Performance Total Revenue $13.0B-$13.4B REVLIMID® net sales $8.0B-$8.3B POMALYST® net sales ~$1.6B OTEZLA® net sales $1.5B-$1.7B ABRAXANE® net sales ~$1.0B Adj. operating margin ~57.0%1 Adj operating margin ~57.5%2

Adj. EPS $7.15-$7.301 Adj EPS $7.25 to $7.352

Clinical Data Ph III apact® – ABRAXANE® in adjuvant PanC Ph III RELEVANCE® – REVLIMID® in 1st line FL Ph III AUGMENTTM – REVLIMID® in RR FL Ph III Ozanimod in multiple sclerosis (SUNBEAMTM and RADIANCETM)X Ph II CC-486 with fulvestrant in ER+ HER2- mBCX Ph II Demcizumab in NSCLC (DENALI)X Ph II Demcizumab in PanC (YOSEMITE) Ph II OTEZLA® in UC Ph II GED-0301 in UC Ph II STEPSTONETM - Ozanimod in CD Ph I/II Durvalumab in RRMM and 1st Line MDS and AML

Trial Enrollment Complete enrollment in Ph III CD-002 – GED-0301 in CD Complete enrollment in Ph III OPTIMISSM® trial

– POMALYST® in 2nd Line MM Complete enrollment in Ph III ROBUST® - REVLIMID® in DLBCL Complete enrollment in Ph III QUAZAR® - CC-486 in AML Complete enrollment in Ph III MEDALISTTM – Luspatercept in MDS Complete enrollment in Ph III BELIEVETM – Luspatercept in beta-thalassemia Complete enrollment in Ph III RELIEF® – OTEZLA® in Behçet’s Complete enrollment in Ph III TRUE NORTHTM – Ozanimod in UC

Regulatory Submissions/Decisions FDA decision of REVLIMID® in post-ASCT maintenance EU decision of REVLIMID® in post-ASCT maintenance Submit sNDA for RVd in NDMM Moved to Q1:18 FDA decision on IDHIFA® in IDH2-mutated AML Submit sNDA for OTEZLA® once-daily formulation Submit NDA for Ozanimod in RMS

Trial Initiations Initiate pivotal trial with CC-122 in DLBCL Initiate pivotal trial with bb2121 in RRMM Initiate pivotal program with JCAR017 in DLBCL Initiate Ph III trial with OTEZLA® in scalp PSOR Initiate Ph III trial with OTEZLA® in AS Moved to 2018X Initiate Ph III trial with RPC4046 in EoE Initiate pivotal trial with Marizomib in GBM Initiate Ph II trial with Luspatercept in myelofibrosis

R&ED File at least 8 IND’s

321. Updated April 2017 2. Updated July 2017

Strong Momentum. Approaching Inflection Point.Investing to Drive Growth Beyond 2020.Strong Momentum. Approaching Inflection Point.Investing to Drive Growth Beyond 2020.

Financial Performance Total Revenue $13.0B-$13.4B REVLIMID® net sales $8.0B-$8.3B POMALYST® net sales ~$1.6B OTEZLA® net sales $1.5B-$1.7B ABRAXANE® net sales ~$1.0B Adj. operating margin ~57.0%1 Adj operating margin ~57.5%2

Adj. EPS $7.15-$7.301 Adj EPS $7.25 to $7.352

Clinical Data Ph III apact® – ABRAXANE® in adjuvant PanC Ph III RELEVANCE – REVLIMID® in 1st line FL Ph III AUGMENT® – REVLIMID® in RR FL Ph III Ozanimod in multiple sclerosis (SUNBEAM and RADIANCE)X Ph II CC-486 with fulvestrant in ER+ HER2- mBCX Ph II Demcizumab in NSCLC (DENALI)X Ph II Demcizumab in PanC (YOSEMITE) Ph II OTEZLA® in UC Ph II GED-0301 in UC Ph II STEPSTONE - Ozanimod in CD Ph I/II Durvalumab in RRMM and 1st Line MDS and AML

Trial Enrollment Complete enrollment in Ph III CD-002 – GED-0301 in CD Complete enrollment in Ph III OPTIMISSM® trial

– POMALYST® in 2nd Line MM Complete enrollment in Ph III ROBUST® - REVLIMID® in DLBCL Complete enrollment in Ph III QUAZAR® - CC-486 in AML Complete enrollment in Ph III MEDALISTTM – Luspatercept in MDS Complete enrollment in Ph III BELIEVETM – Luspatercept in beta-thalassemia Complete enrollment in Ph III RELIEF® – OTEZLA® in Behçet’s Complete enrollment in Ph III TRUE NORTH – Ozanimod in UC

Regulatory Submissions/Decisions FDA decision of REVLIMID® in post-ASCT maintenance EU decision of REVLIMID® in post-ASCT maintenance Submit sNDA for RVd in NDMM Moved to Q1:18 FDA decision on IDHIFA® in IDH2-mutated AML Submit sNDA for OTEZLA® once-daily formulation Submit NDA for Ozanimod in RMS

Trial Initiations Initiate pivotal trial with CC-122 in DLBCL Initiate pivotal trial with bb2121 in RRMM Initiate pivotal program with JCAR017 in DLBCL Initiate Ph III trial with OTEZLA® in scalp PSOR Initiate Ph III trial with OTEZLA® in AS Moved to 2018X Initiate Ph III trial with RPC4046 in EoE Initiate pivotal trial with Marizomib in GBM Initiate Ph II trial with Luspatercept in myelofibrosis

R&ED File at least 8 IND’s

331. Updated April 2017 2. Updated July 2017

Increasing Momentum from Commercial Portfolio Volume driven growth across the portfolio REVLIMID® reaches quarterly sales of $2B Strong OTEZLA® performance 2017 Adjusted EPS and operating margin updated to reflect operational excellence

Inflection Points with Multiple Value Drivers Delivering Ozanimod positive top-line data in RMS; Advancing towards FDA filing by YE:17 Data from REVLIMID® lymphoma trials expected by YE:17 Preparing for IDHIFA® launch

Positioned for Growth Beyond 2020 from Distributed Research Model− Strategic collaboration for BeiGene augments I/O platform− Positive data with ozanimod in CD; Pivotal program in development− Pivotal programs for bb2121, JCAR017 and CC-122 advancing

Q2 2017 Conference CallJuly 27, 2017


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Reconciliation Tables


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Reconciliation TablesReconciliation Tables

36

Use of Non-GAAP Financial Measures

In addition to financial information prepared in accordance with U.S. GAAP, this document also contains certain non-GAAP financial measures based on management’s view ofperformance including:

Adjusted research and development expense Adjusted selling, general and administrative expense Adjusted operating margin Adjusted net income Adjusted earnings per share

Management uses such measures internally for planning and forecasting purposes and to measure the performance of the Company. We believe these adjusted financial measures provideuseful and meaningful information to us and investors because they enhance investors’ understanding of the continuing operating performance of our business and facilitate the comparisonof performance between past and future periods. These adjusted financial measures are non-GAAP measures and should be considered in addition to, but not as a substitute for, theinformation prepared in accordance with U.S. GAAP. When preparing these supplemental non-GAAP financial measures we typically exclude certain GAAP items that management doesnot consider to be normal, recurring, cash operating expenses but that may not meet the definition of unusual or non-recurring items. Other companies may define these measures in differentways. The following categories of items are excluded from adjusted financial results:

Acquisition and Divestiture-Related Costs: We exclude the impact of certain amounts recorded in connection with business combinations and divestitures from our adjusted financial resultsthat are either non-cash or not normal, recurring operating expenses due to their nature, variability of amounts, and lack of predictability as to occurrence and/or timing. These amounts mayinclude non-cash items such as the amortization of acquired intangible assets, amortization of purchase accounting adjustments to inventories, intangible asset impairment charges andexpense or income related to changes in the estimated fair value measurement of contingent consideration. We also exclude transaction and certain other cash costs associated with businessacquisitions and divestitures that are not normal recurring operating expenses, including severance costs which are not part of a formal restructuring program.

Share-based Compensation Expense: We exclude share-based compensation from our adjusted financial results because share-based compensation expense, which is non-cash, fluctuatesfrom period to period based on factors that are not within our control, such as our stock price on the dates share-based grants are issued.


37

Collaboration-related Upfront Expenses: We exclude collaboration-related upfront expenses from our adjusted financial results because we do not consider them to be normal,recurring operating expenses due to their nature, variability of amounts, and lack of predictability as to occurrence and/or timing. Upfront payments to collaboration partners aremade at the commencement of a relationship anticipated to continue for a multi-year period and provide us with intellectual property rights, option rights and other rights withrespect to particular programs. The variability of amounts and lack of predictability of collaboration-related upfront expenses makes the identification of trends in our ongoingresearch and development activities more difficult. We believe the presentation of adjusted research and development, which does not include collaboration-related upfrontexpenses, provides useful and meaningful information about our ongoing research and development activities by enhancing investors’ understanding of our normal, recurringoperating research and development expenses and facilitates comparisons between periods and with respect to projected performance. All expenses incurred subsequent to theinitiation of the collaboration arrangement, such as research and development cost-sharing expenses/reimbursements and milestone payments up to the point of regulatory approvalare considered to be normal, recurring operating expenses and are included in our adjusted financial results.

Research and Development Asset Acquisition Expense: We exclude costs associated with acquiring rights to pre-commercial compounds because we do not consider such costs tobe normal, recurring operating expenses due to their nature, variability of amounts, and lack of predictability as to occurrence and/or timing. Research and development assetacquisition expenses includes expenses to acquire rights to pre-commercial compounds from a collaboration partner when there will be no further participation from thecollaboration partner or other parties. The variability of amounts and lack of predictability of research and development asset acquisition expenses makes the identification oftrends in our ongoing research and development activities more difficult. We believe the presentation of adjusted research and development, which does not include research anddevelopment asset acquisition expenses, provides useful and meaningful information about our ongoing research and development activities by enhancing investors’ understandingof our normal, recurring operating research and development expenses and facilitates comparisons between periods and with respect to projected performance.

Restructuring Costs: We exclude costs associated with restructuring initiatives from our adjusted financial results. These costs include amounts associated with facilities to beclosed, employee separation costs and costs to move operations from one location to another. We do not frequently undertake restructuring initiatives and therefore do not considersuch costs to be normal, recurring operating expenses.

Certain Other Items: We exclude certain other significant items that may occur occasionally and are not normal, recurring, cash operating expenses from our adjusted financialresults. Such items are evaluated on an individual basis based on both the quantitative and the qualitative aspect of their nature and generally represent items that, either as a resultof their nature or magnitude, we would not anticipate occurring as part of our normal business on a regular basis. While not all-inclusive, examples of certain other significantitems excluded from adjusted financial results would be: expenses for significant fair value adjustments to equity investments, significant litigation-related loss contingencyaccruals and expenses to settle other disputed matters.

Estimated Tax Impact From Above Adjustments: We exclude the net income tax impact of the non-tax adjustments described above from our adjusted financial results. The netincome tax impact of the non-tax adjustments includes the impact on both current and deferred income taxes and is based on the taxability of the adjustment under local tax lawand the statutory tax rate in the tax jurisdiction where the adjustment was incurred.


38

Non-Operating Tax Adjustments: We exclude the net income tax impact of certain other significant income tax items, which are not associated with our normal,recurring operations (“Non-Operating Tax Items”), from our adjusted financial results. Non-Operating Tax Items include items which may occur occasionally and arenot normal, recurring operating expenses (or benefits), including adjustments related to acquisitions, divestitures, collaborations, certain adjustments to the amount ofunrecognized tax benefits related to prior year tax positions, and other similar items. We also exclude excess tax benefits and tax deficiencies that arise upon vestingor exercise of share-based payments recognized as income tax benefits or expenses due to their nature, variability of amounts, and lack of predictability as tooccurrence and/or timing.

See the attached Reconciliations of GAAP to Adjusted Net Income for explanations of the amounts excluded and included to arrive at the adjusted measures for thethree- and six-month periods ended June 30, 2017 and 2016, and for the projected amounts for the twelve-month period ending December 31, 2017.


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40


41


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Return on Invested Capital CalculationReturn on Invested Capital Calculation

44

Appendix


PURSUITS IN SCIENCE


PURSUITS IN SCIENCE

Advancing a High Quality Pipeline with Significant PotentialAdvancing a High Quality Pipeline with Significant Potential

REVLIMID®

Del 5q MDS

VIDAZA®

MDS, AML

IDHIFA®

IDH2 AML

LuspaterceptMDS, Beta-thalassemia

CC-486 MDS, AML

IMFINZI™ MDS, AML

CC-90002AML

CC-90009AML

FT-1101MDS, AML

MyeloidDisease

9

MarizomibGBM

CC-486NSCLC, mBC

CC-122HCC

CC-90002Solid Tumors

CC-90011Solid Tumors

ABRAXANE®

PanC, NSCLC, mBC

AG-881Glioma

SolidTumors

12

OMP-313M32Solid Tumors

NavicixizumabSolid Tumors

RosmantuzumabSolid Tumors

LYC-55716Solid Tumors

JTX-2011Solid Tumors

Inflammation& Immunology

12OzanimodIBD, MS

OTEZLA®

PSOR, PSAOTEZLA®

Behçet's, ASScalp PSOR

GED-0301IBD

RPC-4046EoE

OTEZLA®

UCCC-220

SLE

CC-90001 IPF

CC-90006PSOR

FT-4101NASH

LYC-30937UC, PSOR

ABX-1431Neuro, Pain

MarketPh I

L E G E N D

Celgene has an exclusive option to license JTX-2011, LYC-55716, LYC-30937, rosmantuzumab, navicixizumab, OMP-313M32 and FT-1101

REVLIMID®

MCL

ISTODAX®

PTCL, CTCL

REVLIMID®

NHL

CC-122NHL, CLL

JCAR017NHL

IMFINZI™ NHL, CLL

CC-486NHL

Lymphoma& Leukemia

7

REVLIMID®

NDMM, RRMM

POMALYST®

RRMM

THALOMID®

NDMM, RRMM

CC-122RRMM

CC-220RRMM

IMFINZI™ NDMM, RRMM

bb2121RRMM

MarizomibRRMM

ACY-241RRMM

CC-486RRMM

MultipleMyeloma

11

46

LuspaterceptMF

CC-90002NHL

REVLIMID® Multiple Myeloma Late Stage ProgramsREVLIMID® Multiple Myeloma Late Stage Programs

Patient Population Induction and Maintenance in ASCT EligibleTrial Name MYELOMA XI

Phase III

Target Enrollment 4,420

Design

Arm A: Cyclophosphamide (500mg) D1,8,15; THALOMID® (100mg) D1-21 then 200mg daily; Dexamethasone (40mg) D1-4,12-15 for minimum of 4 21-day cycle

Arm B: REVLIMID® (25mg) D1-21; Cyclophosphamide (500mg) D1,8; Dexamethasone (40mg) D1-4,12-15 for minimum of 4 28-day cycles

Arm C: Cyclophosphamide (500mg) D1,8; Carfilzomib (20 mg/m2) D1,2 cycle 1 then (36 mg/m2) D1,2,8,9,15,16; REVLIMID® (25mg) D1-21; Dexamethasone (40mg) D1-4,8,9,15,16 for 4 21-day cycles

Patients with no change, progressive disease, PR or MR randomized to:Arm A: Bortezomib (1.3mg/m2) D1,4,8,11; Cyclophosphamide (500mg) D1,8,15; Dexamethasone (20mg)

D1,2,4,5,8,9,11,12 for max of 8 21-day cyclesArm B: No treatmentAll patients go to SCT

After SCT randomization to:Arm A: REVLIMID® (10mg) D1-21 for 28-day cycle to disease progression

Arm B: No maintenance

Primary Endpoint Overall Survival and Progression Free Survival

Status Interim data presented at ASH 2016

47

POMALYST®/IMNOVID® Multiple Myeloma Late Stage ProgramsPOMALYST®/IMNOVID® Multiple Myeloma Late Stage Programs

Patient Population RRMM

Trial NameMM-007

OPTIMISMM®

Phase III

Target Enrollment 558

Design

Arm A: POMALYST®/IMNOVID® (4mg); Bortezomib (1.3 mg/m2 IV); Low-dose dexamethasone to disease

progressionArm B: Bortezomib (1.3 mg/m2 IV); Low-dose

dexamethasone to disease progression

Primary Endpoint Progression Free Survival

StatusEnrollment complete

Data in 2018E

48

MDS/AML/MF Late Stage ProgramsMDS/AML/MF Late Stage Programs

Patient Population Low risk/INT-1 transfusion-dependent MDS Post induction AML Maintenance

MoleculeCC-486

(Oral Azacitidine)CC-486

(oral azacitidine)

Trial Name AZA-MDS-003 CC-486-AML-001

Phase III III

Target Enrollment 386 460

DesignArm A: CC-486 (150mg or 200mg)

Arm B: PlaceboArm A: CC-486 (150mg or 200mg)

Arm B: Best Supportive Care

Primary Endpoint RBC-transfusion independence for more than 12 weeks Overall Survival

Status Trial enrollingEnrollment complete

Data expected in 2018E

49


Patient Population Anemia in to Very Low-, Low-, or Intermediate-Risk MDS

Red Blood Cell Transfusion Dependent Beta-Thalassemia

Molecule Luspatercept Luspatercept

Trial Name MEDALISTTM BELIEVETM

Phase III III


DesignArm A: Luspatercept (starting dose of 1.0 mg/kg

subcutaneous injection every 3 weeks)Arm B: Placebo (subcutaneous injection every 3

weeks)

Arm A: Luspatercept (1mg/kg plus Best Supportive Care)

Arm B: Placebo plus Best Supportive Care

Primary Endpoint Red Blood Cell Transfusion Independence (RBC-TI) ≥ 8 weeks

Proportion of subjects with hematological improvement from Week 13 to Week 24 compared

to 12-week prior to randomizationHematological improvement from Week 13 to Week

24 compared to the 12-week.


Data expected in 2018EEnrollment complete

Data expected in 2018E

50


Patient Population IDH2 Mutant AML

Molecule IDHIFA® (enasidenib, AG-221)

Trial Name IDHENTIFYTM

Phase III


Design Arm A: IDHIFA® (100 mg daily) 28-day cycle; Best Supportive Care

Arm B: Best Supportive Care

Primary Endpoint Overall survival

Status Trial enrolling

51

REVLIMID® Lymphoma Late Stage ProgramsREVLIMID® Lymphoma Late Stage Programs

Patient Population Relapsed or Refractory Follicular Lymphoma

Newly Diagnosed Follicular Lymphoma

Untreated Activated B-Cell DLBCL

Trial NameAUGMENTTM

NHL-007RELEVANCE®

ROBUST®

DLC-002

Phase III III III

Target Enrollment 357 1,031 560

Design

Arm A: REVLIMID® (10-20mg) D1-21; Rituximab 375 mg/m2 weekly for cycle 1 then D1 of cycles 2-5 for 5 28-day

cyclesArm B: Placebo d1-21; Rituximab 375 mg/m2 weekly for cycle 1 then D1 of

cycles 2-5 for 5 28-day cycles

Arm A: REVLIMID® (starting dose 20mg)

D2-22 for up to 18 28-day cycles; Rituximab (starting dose 375 mg/m2)

weekly for up to 12 28-day cyclesArm B: Physician’s choice of

Rituximab-CHOP, Rituximab-CVP or Rituximab-bendamustine

Arm a: REVLIMID® (15mg) D1-14; R-CHOP21 for 6 21-day cycles

Arm B: Placebo; R-CHOP21 for 6 cycles

Primary Endpoint Progression Free Survival Complete Response Rate and Progression Free Survival Progression Free Survival


Data in 2017EEnrollment complete

Data in 2017ETrial enrollingData in 2018E

52

REVLIMID® Lymphoma Late Stage ProgramsREVLIMID® Lymphoma Late Stage Programs

Patient Population Relapsed or Refractory Indolent Lymphoma

Trial NameMAGNIFYTM

NHL-008

Phase III


Design

Arm A: REVLIMID® (10-20mg) D1-21; Rituximab 375 mg/m2 weekly for cycle 1 then D of cycles 3, 5,7,9 and 11 for 12 28-day cycles followed by REVLIMID® (10mg) D1-21; Rituximab 375 mg/m2 D1 of cycles 13,15,17,19,21,23,25,27 and 29 for 18 28-day cycles followed by REVLIMID® (10mg) D1-

21 until disease progression; 28 day cycleArm B: REVLIMID® (10-20mg) D1-21; Rituximab 375 mg/m2 weekly for cycle 1 then D1 of cycles 3, 5,7,9 and 11 for 12 28-day cycles followed by REVLIMID® (10mg) D1-21; Rituximab 375 mg/m2 D1

of cycles 13,15,17,19,21,23,25,27 and 29 for 18 28-day cycles

Primary Endpoint Progression Free Survival

StatusTrial enrollingData in 2020E

53

ABRAXANE® Solid Tumor Late Stage ProgramsABRAXANE® Solid Tumor Late Stage Programs

Patient Population Adjuvant Therapy in Surgically Resected Pancreatic Cancer

Trial NamePANC-003

apact®

Phase III


DesignArm A: ABRAXANE® (125 mg/m2); Gemcitabine (1000

mg/m2) D1,8,15 for 6 28-day cyclesArm B: Gemcitabine (1000 mg/m2) D1,8,15 for 6 28-

day cycles

Primary Endpoint Disease Free Survival


Data in 2017E

54

I&I Late Stage ProgramsI&I Late Stage Programs

Patient Population Active Behçet’s Disease Scalp Psoriasis

Molecule OTEZLA® OTEZLA®

Trial NameBCT-002RELIEF®

SPSO-001STYLETM

Phase III III


DesignArm A: Placebo for 12 weeks followed by 30mg

OTEZLA® twice daily for 52 weeksArm B: 30mg OTEZLA® twice daily for 64

weeks

Arm A: Placebo for 16 weeks followed by 30mg OTEZLA® twice daily for 16 weeks

Arm B: Placebo for 32 weeks

Primary Endpoint Area under the curve (AUC) for the number of oral ulcers from baseline through week 12

Proportion of subjects with ScPGA score of clear (0) or almost clear (1) with at least a 2-

point reduction from baseline at Week 16


Data in 2017EInitiated; Not yet enrolling

55


Patient Population Active Crohn’s Disease Active Crohn’s Disease

Molecule GED-0301 GED-0301

Trial Name CD-002 CD-004

Phase III III

Target Enrollment 1,300 1,300

Design

Arm A: GED-0301 (160mg) daily for 12 weeks followed by GED-0301 (40mg) daily for 40 weeks

Arm B: GED-0301 (160mg) daily for 12 weeks followed by GED-0301 (40mg) daily for 4 weeks

on/4 weeks off for 40 weeksArm C: GED-0301 (160mg) daily for 12 weeks

followed by GED-0301 (160mg) daily for 4 weeks on/4 weeks off for 40 weeks

Arm A: GED-0301 (160mg) daily for 12 weeks followed by GED-0301 (40mg) daily for 40 weeks

Arm B: GED-0301 (160mg) daily for 12 weeks followed by GED-0301 (40mg) daily for 4 weeks

on/4 weeks off for 40 weeksArm C: GED-0301 (160mg) daily for 12 weeks

followed by GED-0301 (160mg) daily for 4 weeks on/4 weeks off for 40 weeks

Primary Endpoint Clinical remission defined by Crohn's Disease Activity Index (CDAI) Safety

StatusEnrolling

Data in 2018EEnrolling

56


Patient Population Active Crohn’s Disease Moderate to Severe Ulcerative Colitis

Molecule GED-0301 Ozanimod

Trial Name CD-003 TRUE NORTHTM

Phase III III


DesignArm A: GED-0301 (160mg) dailyArm B: GED-0301 (4x40mg) daily

Arm C: Placebo

Arm A: Ozanimod (1mg) daily for induction and maintenance

Arm B: Placebo induction and maintenance

Primary Endpoint Proportion of subjects achieving clinical remission at Week 12

Clinical remission assessed by Mayo component sub-scores at week 10

Clinical remission assessed by Mayo component sub-scores at week 52

StatusInitiated

Not yet enrollingEnrolling

Data in 2018E

57


Patient Population Relapsing Multiple Sclerosis Relapsing Multiple Sclerosis

Molecule Ozanimod Ozanimod

Trial Name SUNBEAMTM RADIANCETM

Phase III II/III

Target Enrollment ~1300 ~1300

Design

Arm A: Ozanimod (0.5mg) daily; Placebo IM weeklyArm B: Ozanimod (1mg) daily; Placebo IM weekly

Arm C: Oral placebo daily; Beta-interferon IM weekly

Phase IIArm A: Ozanimod (0.5mg) dailyArm B: Ozanimod (1mg) daily

Arm C: Placebo dailyPhase III

Arm A: Ozanimod (0.5mg) daily; Placebo IM weeklyArm B: Ozanimod (1mg) daily; Placebo IM weekly

Arm C: Oral placebo daily; Beta-interferon IM weekly

Primary Endpoint Annualized relapse rate at month 12 Annualized relapse rate at month 24

StatusData top-lined

Full data expected in H2:17Data top-lined

Full data expected in H2:17

58

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