32nd Annual J.P. Morgan Healthcare Conference
J 13 2014January 13, 2014
Forward Looking Statements and Non-GAAP Financial Information
This presentation contains forward-looking statements, which are generally statements that are nothistorical facts. Forward-looking statements can be identified by the words “expects,” “anticipates,”“believes,” “intends,” “estimates,” “plans,” “will,” “outlook” and similar expressions. Forward-looking, , , p , , p gstatements are based on management’s current plans, estimates, assumptions and projections, andspeak only as of the date they are made. We undertake no obligation to update any forward-lookingstatement in light of new information or future events, except as otherwise required by law. Forward-looking statements involve inherent risks and uncertainties, most of which are difficult to predict andare generally beyond our control Actual results or outcomes may differ materially from those impliedare generally beyond our control. Actual results or outcomes may differ materially from those impliedby the forward-looking statements as a result of the impact of a number of factors, many of whichare discussed in more detail in our Annual Report on Form 10-K and our other reports filed with theSecurities and Exchange Commission.
In addition to financial information prepared in accordance with U.S. GAAP, this presentation alsocontains adjusted financial measures that we believe provide investors and management withsupplemental information relating to operating performance and trends that facilitate comparisonsbetween periods and with respect to projected information. These adjusted measures are non-GAAP and should be considered in addition to but not as a substitute for the information preparedGAAP and should be considered in addition to, but not as a substitute for, the information preparedin accordance with U.S. GAAP. We typically exclude certain GAAP items that management doesnot believe affect our basic operations and that do not meet the GAAP definition of unusual or non-recurring items. Other companies may define these measures in different ways. Further informationrelevant to the interpretation of adjusted financial measures, and reconciliations of these adjustedfi i l t th t bl GAAP b f d C l ’ b it t
2
financial measures to the most comparable GAAP measures, may be found on Celgene’s website atwww.Celgene.com in the “Investor Relations” section.
Our Mission and Vision
Celgene is building a preeminent global biopharmaceutical company focused on the
discovery, development and commercialization of innovative therapies for unmet medical needs in
cancer and immune-inflammatory diseases
3
O U R F O C U S
Four Strategic Imperatives
Operational excellenceOperational excellenceOperational excellenceOperational excellence
Capitalizing on strength in HematologyCapitalizing on strength in Hematology
Building new franchises in Oncology and I & IBuilding new franchises in Oncology and I & I
Sustaining innovation and long-term growthSustaining innovation and long-term growth
4
M A J O R A C C O M P L I S H M E N T S I N 2 0 1 3 :
Exceptional Financial and Operational Performance
Operational excellence
f $ % /
Operational excellence
• Total net product sales of ~$6,362M, +18% y/y
• Net REVLIMID sales of ~$4,280M, +14% y/y
Adjusted EPS at $5 96 +21% y/y• Adjusted EPS at ~$5.96, +21% y/y
• Improved operating margins ~30 bps
• Repurchased over $2 7 billion in shares• Repurchased over $2.7 billion in shares
• Raised $1.5 billion in long-term notes
5
Notes: All 2013 financial figures are unaudited.
M A J O R A C C O M P L I S H M E N T S I N 2 0 1 3 :
Expanding Our Leadership in Hematology
Capitalizing on strength in Hematology
REVLIMID® d t t d PFS d OS b fit i th
Capitalizing on strength in Hematology
• REVLIMID® demonstrated PFS and OS benefit in the Ph III MM-020 trial (NDMM)
• REVLIMID® approved in EU for del 5q MDS, in U.S. for MCL and in China for RRMMMCL and in China for RRMM
• POMALYST®/IMNOVID® RRMM approved in U.S. and EU
• Advanced clinical programs in myeloma, lymphoma, leukemia, anemia and MDS
• Strengthened hematology portfolio through collaborations
6
R E V L I M I D ® :
Execution and New Indications Accelerate Growth31 2 433
Key Growth DriversKey Growth DriversSales ($M) $1 136
1 2 43
• Increased duration of therapy and market share growth in RRMM
• Expansion into NDMM
Sales ($M)
$1,090
$1,136
p– U.S. and EU regulatory submissions
on-track for Q1:14
• New Indications for MDS, NHL & CLLPh III MDS 005 non del 5q MDS data
$1,052
– Ph III MDS-005 non-del 5q MDS data expected in Q4:14
– Ph III REMARC trial in DLBCL enrollment completion expected in Q1:14
– Ph III RELEVANCE trial in follicular NHL
$1,003
enrollment ahead of schedule– Ph III CONTINUUM trial in CLL enrolling
7
Notes: Sales Unaudited.
Q1 Q2 Q3 Q4
R E V L I M I D ® :
Execution and New Indications Accelerate Growth11
Key Growth DriversKey Growth DriversSales ($B)
9%CAGR
• Increased duration of therapy and market share growth in RRMM
• Expansion into NDMM
Sales ($B)
$7.013%CAGRCAGR
p– U.S. and EU regulatory submissions
on-track for Q1:14
• New Indications for MDS, NHL & CLLPh III MDS 005 non del 5q MDS data
$4.3
$6.0CAGR
– Ph III MDS-005 non-del 5q MDS data expected in Q4:14
– Ph III REMARC trial in DLBCL enrollment completion expected in Q1:14
– Ph III RELEVANCE trial in follicular NHL enrollment ahead of schedule
– Ph III CONTINUUM trial in CLL enrolling
2013* 2015E 2017E
8
Notes: *Unaudited.
P O M A L Y S T ® / I M N O V I D ® :
Establishing a New Standard in RRMM4
Key Growth DriversKey Growth Drivers
4
Sales ($M)
$121
• Global launch is ongoing– U.S. approval on February 8, 2013– EU approval on August 5, 2013;
reimbursement in key markets
Sales ($M)
$66
$90
reimbursement in key markets expected throughout 2014
– Additional global approvals expected
• Increase duration of therapy
$29
$66– Potential strategies to move into 2nd line multiple myeloma
• Combination strategies with:Proteasome inhibitors $29– Proteasome inhibitors
– Monoclonal antibodies– HDAC inhibitors
9
Q1 Q2 Q3 Q4
Notes: Sales Unaudited.
P O M A L Y S T ® / I M N O V I D ® :
Establishing a New Standard in RRMM
Key Growth DriversKey Growth DriversSales ($B)
• Global launch is ongoing– U.S. approval on February 8, 2013– EU approval on August 5, 2013;
reimbursement in key markets
Sales ($B)
$1.5
reimbursement in key markets expected throughout 2014
– Additional global approvals expected
• Increase duration of therapy $1.0
35%CAGR 49%CAGR
– Potential strategies to move into 2nd line multiple myeloma
• Combination strategies with:Proteasome inhibitors $0 3– Proteasome inhibitors
– Monoclonal antibodies– HDAC inhibitors
$0.3
2013* 2015E 2017E
10
Notes: *Unaudited.
M A J O R A C C O M P L I S H M E N T S I N 2 0 1 3 :
Broadening Our Footprint in Oncology
Building new franchises in OncologyBuilding new franchises in Oncology
• ABRAXANE® pancreatic cancer approved in U.S. and EU
• ABRAXANE® NSCLC/gastric cancer approved in Japan
• Advanced Ph III ABRAXANE® programs in triple negative• Advanced Ph III ABRAXANE® programs in triple negative breast cancer, adjuvant PanC and NSCLC maintenance
• Initiated Ph II programs with CC-486 (epigenetic priming), CC-223 (TORKi) and VTX-2337(TLR8)CC 223 (TORKi) and VTX 2337(TLR8)
• Broadened oncology portfolio through collaborations
11
A B R A X A N E ® :
New Indications for NSCLC & PanC Accelerate Growth4
Key Growth DriversKey Growth DriversSales ($M)
4
$155$170
$20290%90%
• Establishing a new standard of care in metastatic pancreatic cancer
– U.S. approval on September 6, 2013EU approval on December 23 2013
Sales ($M)
$123
$155
60%60%
– EU approval on December 23, 2013– Additional global approvals expected
• Expanding into new patient segments in core indications
41%41%
g– Ph III trials for triple-negative mBC,
adjuvant PanC, and NSCLC maintenance
• Expanding into new cancers in 2014
% ∆ Y/Y
18%18% Sales• Expanding into new cancers in 2014
– Ph II trials for colorectal and ovarian– Ph I/II combo with anti-PDL-1/PD-1
12
Q1 Q2 Q3 Q4
Notes: Sales Unaudited.
Key Growth Drivers
A B R A X A N E ® :
New Indications for NSCLC & PanC Sustain Growth
$0.65
$1.5-$2.0
2013* 2015E 2017E
• Establishing a new standard of care
in metastatic pancreatic cancer
– U.S. approval on September 6, 2013
– EU approval on December 23, 2013
– Additional global approvals expected
• Expanding into new patient
segments in core indications
– Ph III trials for triple-negative mBC,
adjuvant PanC, and NSCLC
maintenance
• Expanding into new cancers in 2014
– Ph II trials for colorectal and ovarian
– Ph I/II combo with anti-PDL-1/PD-1
Notes: *Unaudited; #CAGR calculated using 2013 and 2017 midpoint.
Sales ($B)
4
28% CAGR#
M A J O R A C C O M P L I S H M E N T S I N 2 0 1 3 :
Preparing the Global Launch of OTEZLA® (apremilast)
Building new franchises in I & IBuilding new franchises in I & I
• Submitted OTEZLA® in the U.S./EU for PsA and psoriasis
• Strengthened OTEZLA® profile with longer-term data in PsA and psoriasisp
• Pivotal trials featured at major medical meetings
• Key leadership in place to drive launch
I iti t d Ph II OTEZLA® f C h ’ di• Initiated Ph II OTEZLA® programs for Crohn’s disease, ulcerative colitis, and atopic dermatitis
14
O T E Z L A ® :
Ready to Launch in PsA and Psoriasis in 2014
Key Growth DriversKey Growth Drivers Large Underserved
PsoriaticA th iti
Patient Populations
~1 0MPsA
• Approvals expected in 2014– U.S.: PsA in Q1; psoriasis in Q3– EU: PsA and psoriasis in Q1:15
Arthritis 1.0M
P i i
• Launch preparedness– Brand strategy and positioning defined– Commercial team in place– Patient/physician support service built
~2.5MPsoriasis (moderate to severe)
Patient/physician support service built
• Optimize OTEZLA® opportunity– Ph III trial in ankylosing spondylitis – Ph II trials in Crohn’s disease, ulcerative
~2.5MAnkylosingSpondylitis
colitis and atopic dermatitis initiating– QD formulation
15
O T E Z L A ® :
Profile Strengthens with Longer Treatment Duration2 3
52-Week PsA Data52-Week PsA Data
2 3
32-Week Psoriasis Data 32-Week Psoriasis Data
60
70
80
espo
nse
(%)
in P
AS
I (%
)
60
70
* *
Data as observed
40
50
60
an A
CR
20
Re
rom
Bas
elin
e
30
40
50
*
*
10
20
30
nts
Ach
ievi
ng a
mpr
ovem
ent f
r10
20
30
*
0
10
week 0
week 16
week 24
week 40
week 52
PALACE 1 PALACE 2
Pat
ien
Mea
n Im
0Baseline 4 6 8 10 12 14 16 20 24 28 32
Weeks OTEZLAPlacebo
16
PALACE 3 PALACE 4 *P<0.0001 vs. placebo (LOCF)PlaceboPbo/OTEZLA
O T E Z L A ® :
OTEZLA® Use Expected Before Biologics in PsA
Question: Of your next 100 patients on apremilast, what percent of patients would you distribute to each of the following points in the therapy sequence?
~66% of patients would be pre-biologic
12% 54% 34%12% 54% 34%
Before 1st DMARD DMARD Experienced After ≥ 1 biologicBefore 1st DMARD DMARD Experienced After ≥ 1 biologic
17
Source: National Analysts, n=150 U.S. rheumatologists, Review of Apremilast PALACE 1-3 24 week Target Product Profile Q3 2013
O T E Z L A ® :
Unique Opportunity in Ankylosing Spondylitis
Large Underserved Another Large OpportunityAnother Large Opportunity
PsoriaticA th iti
Patient Populations
~1 0MPsA
Arthritis 1.0M
P i i~2.5M
Psoriasis (moderate to severe)
~2.5MAnkylosingSpondylitis
18
Data from ~500 patient Ph III trial expected in H1 Data from ~500 patient Ph III trial expected in H1
M A J O R A C C O M P L I S H M E N T S I N 2 0 1 3 :
Sustaining Growth through Innovation
Sustaining innovation and long term growth
Ad d t d i t li i l t i l
Sustaining innovation and long-term growth
• Advanced partnered programs into clinical trials
• Accelerated Ph II trials to critical decision points
• Initiated broad program with novel novel combinations• Initiated broad program with novel-novel combinations
• Named new development candidates and advanced the early stage pipeline
• Initiated new and broadened existing strategic collaborations
19
Complementing Our Internal Strengths with Selected External Partnerships
Novel IMiDs® /CRBN & OtherUbiquitin Ligase
New Targets, EpigeneticPriming &
CGDF Family
PKC
Payload Delivery,Next Gen
Complementary Approaches to Ubiquitin Ligase
TargetsConvergencewith Metabolic
Targets
+PDE4 Complementation
+PKC
PKC,BTKi, TYK2,
Novel Targets
JNK1, New Targets,
Novel phenotypic screens
Next GenEnhanced Activities
Immuno‐therapy,
Breaking Tumor Tolerance
Unique Validation / Testing Capabilitiesfrom
Tumor Tissue
Pathway ConvergentMechanisms,
Synthetic LethalCombinations
RationalRational
CancerCancerStem Cells/Stem Cells/ResistanceResistance
ImmunoImmuno‐‐therapytherapy
EpigeneticsEpigeneticsNextNext
GenerationGenerationBiologicsBiologics
ProteinProteinHomeostasisHomeostasis
Apremilast+Apremilast+
NovelNovelTargets FitTargets Fitfor Purposefor Purpose
FibrosisFibrosis
Combinations
20
RationalRationalCombinationsCombinations
Apremilast+Apremilast+CombinationsCombinations
PLATFORMS
Advancing Novel Programs into Phase I
21
DC IND
Advancing Novel Programs into Phase I
Key Phase I Studies Planned/Underway:MOR 202 in RRMM and AML
ACY 1215 in RRMMACY-1215 in RRMMEPZ-5676 in MLL-r
AG-221 in IDH1m AMLPDA-002 in PAD
Demcizumab in Solid TumorsCC-90001 in FibrosisCC 90001 in Fibrosis
Novel-Novel DLBCL Combinations
DC IND
22
≥≥3 3 new INDs new INDs targeted per targeted per yearyear
Expanding Phase II Program with New Entities
Over 100 Phase II Trials Planned/Underway:CC-486 Priming in Solid Tumors
CC 122 in Hematologic MalignanciesCC-122 in Hematologic MalignanciesCC-292 in CLL, NHL and RA
Sotatercept (ACE-011) in MDS, Anemia, CKDACE-536 in MDS, Anemia
CC-220 in SLE, Scleroderma and SarcoidosisPDA-001 in Crohn’s DiseasePDA 001 in Crohn s DiseaseVTX-2337 in Solid Tumors
DC IND
23
Significant data flow expected in 2014/2015Significant data flow expected in 2014/2015
Broadening Phase III Program
Over 30 Phase III Trials Planned/Underway:OTEZLA® in Ankylosing Spondylitis and Behçets
REVLIMID® in NDMM, NHL and CLLCC 486 in MDS and AMLCC-486 in MDS and AML
ABRAXANE® in TNBC, Adjuvant PanC, NSCLCSotatercept / ACE-536 in β-Thalassemia
DC IND
24
Potential upside to Potential upside to 2017 financial targets2017 financial targets
Our Deep Clinical and Development Pipeline
21 Programs in Clinical Developmentg p
100+ Celgene-sponsored Clinical Trials
28 000 E ll d P ti t~28,000 Enrolled Patients
Over 50 Indications
DC IND
25
Powerful Business Model, Driving Sustainable Growth
Our Growth OutlookOur Growth Outlook
26
Raising Product Sales Targets in 2015 and 2017
Product Sales ($B)
+$1.5B+$1.5B
$13-$14Now
$12++$0.5B+$0.5B
$6 4
$8.5-$9.5Now
$8-$9
$12++$0.4B+$0.4B
$6.4
Before
Before$6+
Before
Now
2013* 2015E 2017E
27
Notes: *Unaudited.
Building on Strong Momentum in Core Franchise
Before Now Change
2017 Sales
Before Now Change
$6B $7B +$1B
$ $ $
11
$1B $1.5B +$0.5B
Total Hematology $8B-9B $9.5B-$10B +$1.5B
22
$1.5B-$2B $1.5B-$2B –
$1.5B-$2B $1.5B-$2B –
33
44
Total $12B+ $13B-$14B +$1.5B
28
Accelerating Growth Outlook Through 2017
Product Sales($B)
EPS2
($)
19%CAGR1 25%
CAGR
$13-$14Now
$12+
~$15Now
$13 14
21%CAGR1 26%
CAGR
$8.5-$9.5Now
$8-$9
$12
$9-$9.50Now
$13-14
$6.4$5.96
o$8-$9
$6+Now
$5.50-$5 60
Now
$5.60
29
Notes: 1) CAGR calculated using 2013 and 2017 midpoint. 2) Adjusted. 3) Unaudited.
20133 2015E 2017E 20133 2015E 2017E
2014 Financial Guidance
2014 Financial Guidance2014 Financial Guidance2014 Financial Guidance2014 Financial Guidance
Total product sales: $7.3 to $7.4 Billion, +16% Y/Y
Total REVLIMID sales: $4.9 to $5.0 Billion, +16% Y/Y
Adjusted EPS: $7.00 to $7.20, +19% Y/Y
Operating margin1: ~50%, +160 bps
30
Notes: 1) Adjusted.
T H E C E L G E N E S T O R Y
Powerful Business Model, Driving Sustainable Growth
Leveraging Strong Growth Sustainable Trajectory g gPowerful Model
gto 2017
j yBeyond 2017
Leveraging model 4 blockbuster 21 programs– all metrics
improving
More diversifiedl i k
products by 2017
Trajectory increased to 26% CAGR
>50 indications
100+ clinical trials– lower risk
5-10years
26%CAGR
Adjusted EPS
2013 2015E 2017E
years
31
2013 2015E 2017E
32nd Annual J.P. Morgan Healthcare Conference
J 13 2014January 13, 2014
Key Milestones – 2014
Business Milestone Expected Timing
• Submit REVLIMID® for NDMM in the U S and EU Q1• Submit REVLIMID® for NDMM in the U.S. and EU Q1
• Ph III VIDAZA® data in AML (AZA-AML-001) H1
• Initial Ph I data from AZA-ST-001 (CC-486 priming) H1
• Ph III REVLIMID® data in non-del 5q MDS H2Hematology& Oncology
Ph III REVLIMID data in non del 5q MDS H2
• Ph I MOR202 data in RRMM H2
• Ph II Sotatercept (ACE-011) data in MDS H2
• Ph II ACE-536 data in MDS and β-thalassemia H2β
• Initial Ph I/II CC-292+REVLIMID® in CLL H2
• Ph Ib demcizumab combination data in PanC and NSCLC 2014
• OTEZLA® approval in the US for PsA Q1
I & I
• Ph III OTEZLA® data in ankylosing spondylitis H1
• OTEZLA® approval in the US for psoriasis Q3
• OTEZLA® CHMP opinion for PsA and psoriasis Q4
• Ph II Sotatercept (ACE-011) data in renal anemia 2014
33
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