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Cantor Fitzgerald 3rd Annual Healthcare Conference

September 26, 2017

CHANGING THE COURSE OFHUMAN HEALTH THROUGH BOLD

PURSUITS IN SCIENCE


PURSUITS IN SCIENCE

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

This presentation contains forward-looking statements, which are generally statements that are not historical facts. Forward-lookingstatements can be identified by the words “expects,” “anticipates,” “believes,” “intends,” “estimates,” “plans,” “will,” “outlook,” “targets” andsimilar expressions. Forward-looking statements 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-looking statement in light of new informationor future events, except as otherwise required by law. Forward-looking statements involve inherent risks and uncertainties, most of whichare difficult to predict and are generally beyond our control. Actual results or outcomes may differ materially from those implied by theforward-looking statements as a result of the impact of a number of factors, many of which are discussed in more detail in our AnnualReport 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 contains adjusted financialmeasures. Further information relevant to the interpretation of adjusted financial measures, and reconciliations of these adjusted financialmeasures to the most comparable GAAP measures, may be found in the Appendix and on our website at www.Celgene.com in the“Investor Relations” section.

2

Our Mission and VisionOur Mission and Vision

Celgene is building a preeminent global biopharmaceutical company focusedon the discovery, development and commercialization of innovative therapies for patients with cancer, immune-inflammatory, and other unmet medical needs

3

A Leading Global Biopharmaceutical Company A Leading Global Biopharmaceutical Company

4

Unique R&DCapability

• Expertise in hematology, oncology, inflammation and immunology

• Diverse technology platforms• Rich pipeline

– 43 programs in preclinical development– 41 potential treatments in clinical trials– 22 pivotal / phase III programs underway

• Operations in >60 countries• Sales in >70 countries• Manufacturing facilities in U.S. and EU• Key research facilities in NJ, CA, MA,

WA and Spain• ~7,000 employees globally

Global, FullyIntegrated Portfolio of Leading Products

Blockbuster Products with Unique Value PropositionsBlockbuster Products with Unique Value Propositions

Market leader in multiple myeloma – expanding share & duration − Non-transplant NDMM reimbursed in 22 countries; TE Maintenance approved in US & EU− Established clinical synergy in approved novel triplet combinations

A standard of care in 3rd-Line+ multiple myeloma− Approved in 58 countries; increasing market share and treatment duration− Emerging backbone therapy with novel triplet combinations under evaluation

Most successful launch in the psoriasis / psoriatic arthritis category − Global expansion advanced: reimbursed in 23 countries; Rapid uptake in France & Japan − Advancing robust life cycle management across multiple indications

Global market leading branded therapy for metastatic pancreatic cancer− Adjuvant pancreatic cancer trial enrollment complete; Data expected by YE:17− Advancing Phase III I/O combinations in NSCLC and triple negative breast cancer

5

2012 2013 2014 2015 2016

Guidance Actual

2012 2013 2014 2015 2016

Guidance Actual

Operating Excellence Is Driving High Growth & Financial OverperformanceOperating Excellence Is Driving High Growth & Financial Overperformance

25%CAGR

20%CAGR

$5.5$6.5

$7.7

$9.3

$11.2

Adjusted Diluted EPS($)

Total Revenue($B)

$2.45$2.98

$3.71

$4.71

$5.94

6

$11.2

>$21

2016 2020E

Delivering Industry-Leading, Volume-Driven GrowthDelivering Industry-Leading, Volume-Driven Growth

Adjusted Diluted EPS($)

Total Revenue($B)

$5.94

>$13.00

2016 2020E

22%CAGR

17%CAGR

7*2020 targets at currency exchange rates on January 9, 2017

19

13

8

Entering a Pivotal Inflection Point with Multiple Value Drivers to Sustain Growth from 2020-2030Entering a Pivotal Inflection Point with Multiple Value Drivers to Sustain Growth from 2020-2030

$13-13.4Brevenue

2017 (E) >$21B revenue

2020 (E)

8

REVLIMID®

Del 5q MDS

VIDAZA®

MDS, AML

IDHIFA®

IDH2 RRAML

CC-486 MDS, AML

LuspaterceptMDS, Beta-thalassemia

CC-90002AML

IMFINZI™ MDS, AML

CC-90009AML

FT-1101MDS, AML

MyeloidDisease

10

MarizomibGBM

CC-486NSCLC, mBC

CC-122HCC

CC-90002Solid 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

REVLIMID®

MCL

ISTODAX®

PTCL, CTCL

REVLIMID®

NHL

CC-122NHL, CLL

JCAR017NHL

IMFINZI™ NHL, CLL

CC-486NHLLymphoma

& Leukemia7

REVLIMID®

NDMM, RRMM

POMALYST®

RRMM

THALOMID®

NDMM, RRMM

CC-122RRMM

CC-220RRMM

IMFINZI™ NDMM, RRMM

bb2121RRMM

MarizomibRRMM

ACY-241RRMM

CC-486RRMM

MultipleMyeloma

10

9

LuspaterceptMF

CC-90002NHL

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

Celgene has an exclusive option to license JTX-2011, rosmantuzumab, navicixizumab, OMP-313M32, FT-1101, FT-4101, AG-881 and an option to acquire LYC-55716, LYC-30937 and ABX-1431

REVLIMID®

Del 5q MDS

VIDAZA®

MDS, AML

IDHIFA®

IDH2 RRAML

CC-486 MDS, AML


CC-90002AML

IMFINZI™ MDS, AML

CC-90009AML

FT-1101MDS, AML

MyeloidDisease

10

MarizomibGBM

CC-486NSCLC, mBC

CC-122HCC



ABRAXANE®

PanC, NSCLC, mBC

AG-881Glioma

SolidTumors







12OzanimodIBD, MS

OTEZLA®

PSOR, PSAOTEZLA®


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

REVLIMID®

MCL

ISTODAX®

PTCL, CTCL

REVLIMID®

NHL

CC-122NHL, CLL

JCAR017NHL

IMFINZI™ NHL, CLL

CC-486NHLLymphoma

& Leukemia7

REVLIMID®

NDMM, RRMM

POMALYST®

RRMM

THALOMID®

NDMM, RRMM

CC-122RRMM

CC-220RRMM


bb2121RRMM

MarizomibRRMM

ACY-241RRMM

CC-486RRMM

MultipleMyeloma

10

10

LuspaterceptMF

CC-90002NHL

Defining New Standards of Care in Multiple MyelomaDefining New Standards of Care in Multiple Myeloma

Comprehensive Strategy Targets Unmet Needs in MyelomaComprehensive Strategy Targets Unmet Needs in Myeloma

SCT Received Non-SCT Received

Frail (no triplets)

Failed IMiD® and PISwitch class doublets

Prior response >12 mo

Standard risk

Highrisk

Standard risk

Elderly frail

Highrisk

Sub-optimalresponse <12 mo

Patient Segments with High Unmet Need

Curative Potential High unmet need

Post-POMALYST®, Daratumumab, new MOAs

1st Line

2nd Line

3rd Line

4th Line+

REVLIMID® / dexREVLIMID® Triplet

REVLIMID® / dexREVLIMID® Triplet

POMALYST® / dexPOMALYST® TripletREVLIMID® Triplet

POMALYST®/ dexPOMALYST® TripletREVLIMID® Triplet

Current & PotentialStandards of Care

CelgeneMyeloma Pipeline

Next-Gen CELMoD® Agents

Next-Gen Epigenetic Agents

Immuno-Oncology Agents

Next-Gen Proteasome Inhibitors

CC-122 CC-220

CC-93269

IMFINZI™

bb2121

ACY-241CC-486

Marizomib

CC-92480

11

Targeting BCMA: A Potentially Disruptive Approach to Myeloma TherapyTargeting BCMA: A Potentially Disruptive Approach to Myeloma Therapy

CAR-TCells

TUMOR

3. Antibody Drug Conjugate

BCMA

TCells

2. Bispecific Antibody

BCMA

1. CAR-T Cell

BCMA

ChimericTCR

Cytotoxicgranules

Cytotoxicgranules

High value target that is uniformly expressed on myeloma cells

Emerging CAR-T clinical data validates potential in highly refractory disease

Advancing a comprehensive campaign with three distinct approaches:

1. bb2121: CAR-T in Ph I with bluebird bio. Pivotal trial initiation expected by YE:17

2. CC-93269: bispecific antibody expected to file IND by YE:17

3. Antibody drug conjugates in preclinical development with Sutro Biopharma

*Celgene acquired EngMab AG in September 2016** Celgene collaboration 12

***

**

REVLIMID®

Del 5q MDS

VIDAZA®

MDS, AML

IDHIFA®

IDH2 RRAML

CC-486 MDS, AML


CC-90002AML

IMFINZI™ MDS, AML

CC-90009AML

FT-1101MDS, AML

MyeloidDisease

10

MarizomibGBM

CC-486NSCLC, mBC

CC-122HCC



ABRAXANE®

PanC, NSCLC, mBC

AG-881Glioma

SolidTumors







12OzanimodIBD, MS

OTEZLA®

PSOR, PSAOTEZLA®


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

REVLIMID®

MCL

ISTODAX®

PTCL, CTCL

REVLIMID®

NHL

CC-122NHL, CLL

JCAR017NHL

IMFINZI™ NHL, CLL

CC-486NHLLymphoma

& Leukemia7

REVLIMID®

NDMM, RRMM

POMALYST®

RRMM

THALOMID®

NDMM, RRMM

CC-122RRMM

CC-220RRMM


bb2121RRMM

MarizomibRRMM

ACY-241RRMM

CC-486RRMM

MultipleMyeloma

10

13

LuspaterceptMF

CC-90002NHL

Expanding Our Portfolio in Myeloid DiseasesExpanding Our Portfolio in Myeloid Diseases

Transformative Therapies in Development for Myeloid DiseasesTransformative Therapies in Development for Myeloid Diseases

August 1, 2017: Granted FDA approval for the treatment of adult patients with relapsed or refractory AML with an isocitrate dehydrogenase-2 (IDH2) mutation as detected by an FDA-approved test

First-in-class treatment for IDH2 mutant rrAML Ph III IDHentify™ trial underway

Novel ligand trap for TGF- superfamily ligands

Ph III trials in RS+ MDS and beta-thalassemia underway

Initiate trials in broader MDS and beta-thalassemia segments and myelofibrosis beginning in 2017

LuspaterceptIDHIFA®

IMFINZI™ CC-486

Potentially best-in-class oral demethylating drug

Ph III QUAZAR® trials underway in MDS and AML maintenance; AML data expected in 2018

Additional trials planned in MDS and multiple myeloma

Anti-PD-L1 monoclonal antibody

Broad Ph I/II FUSION program underway:– MDS and AML

Ph III enabling data expected in 2017

14

Myelofibrosis

Celgene Myeloid Pipeline Covers the Entire Disease SpectrumCelgene Myeloid Pipeline Covers the Entire Disease Spectrum

β-Thalassemia

β-Thalassemia SpectrumRegularly TransfusedOccasionally Transfused

+

RS+, ESA Refractory or Ineligible

AML

Front-Line Fit Patients

Elderly Maintenance

after IC

Elderly-1st Line

AML 2nd Relapse

Higher-Risk

MDS

Del 5q

Lower-Risk, RBC TD

Low Platelet

MDS Spectrum

+

+

HMA failures

AML Spectrum

Myelofibrosis

CC-486

CC-486

CC-486

CC-90009

LuspaterceptLuspatercept

Luspatercept

Luspatercept

Luspatercept

15

REVLIMID®

Del 5q MDS

VIDAZA®

MDS, AML

IDHIFA®

IDH2 RRAML

CC-486 MDS, AML


CC-90002AML

IMFINZI™ MDS, AML

CC-90009AML

FT-1101MDS, AML

MyeloidDisease

10

MarizomibGBM

CC-486NSCLC, mBC

CC-122HCC



ABRAXANE®

PanC, NSCLC, mBC

AG-881Glioma

SolidTumors







12OzanimodIBD, MS

OTEZLA®

PSOR, PSAOTEZLA®


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

REVLIMID®

MCL

ISTODAX®

PTCL, CTCL

REVLIMID®

NHL

CC-122NHL, CLL

JCAR017NHL

IMFINZI™ NHL, CLL

CC-486NHLLymphoma

& Leukemia7

REVLIMID®

NDMM, RRMM

POMALYST®

RRMM

THALOMID®

NDMM, RRMM

CC-122RRMM

CC-220RRMM


bb2121RRMM

MarizomibRRMM

ACY-241RRMM

CC-486RRMM

MultipleMyeloma

10

16

LuspaterceptMF

CC-90002NHL

Establishing a Lymphoma and Leukemia Franchise Establishing a Lymphoma and Leukemia Franchise

Advancing Novel Immunotherapies for NHL and CLLAdvancing Novel Immunotherapies for NHL and CLL

YE:17YE:171st Line Follicular

Rel / Ref Follicular

Trial Expected DataComprehensive Phase III Program

YE:17YE:17

Rel / Ref Indolent 20192019

1st Line ABC DLBCL 20182018

CC-122

Ph I/II trials underway: NHL, CLL and MM Pivotal program initiation expected in 2017

Interim analysis shows high CR rates in Ph I NHL trial Generally manageable cytokine release syndrome

and neurotoxicity Plan to initiate pivotal program in Q3:2017

JCAR017

17

REVLIMID®

Del 5q MDS

VIDAZA®

MDS, AML

IDHIFA®

IDH2 RRAML

CC-486 MDS, AML


CC-90002AML

IMFINZI™ MDS, AML

CC-90009AML

FT-1101MDS, AML

MyeloidDisease

10

MarizomibGBM

CC-486NSCLC, mBC

CC-122HCC



ABRAXANE®

PanC, NSCLC, mBC

AG-881Glioma

SolidTumors







12OzanimodIBD, MS

OTEZLA®

PSOR, PSAOTEZLA®


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

REVLIMID®

MCL

ISTODAX®

PTCL, CTCL

REVLIMID®

NHL

CC-122NHL, CLL

JCAR017NHL

IMFINZI™ NHL, CLL

CC-486NHLLymphoma

& Leukemia7

REVLIMID®

NDMM, RRMM

POMALYST®

RRMM

THALOMID®

NDMM, RRMM

CC-122RRMM

CC-220RRMM


bb2121RRMM

MarizomibRRMM

ACY-241RRMM

CC-486RRMM

MultipleMyeloma

10

18

LuspaterceptMF

CC-90002NHL

Building a Solid Tumor Portfolio on the ABRAXANE® FoundationBuilding a Solid Tumor Portfolio on the ABRAXANE® Foundation

Near-term Opportunities in Solid Tumors Near-term Opportunities in Solid Tumors

Adjuvant PanC

IMpower 131NSCLC I/O Combo

IMpower 130NSCLC I/O Combo

TNBC I/O Combo

YE:17YE:17

Trial Expected DataComprehensive Phase III Program

20182018

20182018

20182018

Next-generation proteasome inhibitor that uniquely crosses the blood-brain-barrier

Ph I/II combo data in GBM encouraging

Targeting pivotal program initiation in 2017

Marizomib

19

Novel I/O Candidates Advancing in Solid Tumors

JTX-2011*: ICOS agonist mAb– Preliminary efficacy data from the phase I/II ICONIC

trial expected H1:18

OMP-313M32**: anti-TIGIT mAb– Phase I trial initiated

* Celgene and Jounce Therapeutics collaboration** Celgene and OncoMed Pharmaceuticals collaboration

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 locally advanced or metastatic urothelial carcinoma. 20

CC-92480(CELMoD®)

REVLIMID®

Del 5q MDS

VIDAZA®

MDS, AML

IDHIFA®

IDH2 RRAML

CC-486 MDS, AML


CC-90002AML

IMFINZI™ MDS, AML

CC-90009AML

FT-1101MDS, AML

MyeloidDisease

10

MarizomibGBM

CC-486NSCLC, mBC

CC-122HCC



ABRAXANE®

PanC, NSCLC, mBC

AG-881Glioma

SolidTumors







12OzanimodIBD, MS

OTEZLA®

PSOR, PSAOTEZLA®


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

REVLIMID®

MCL

ISTODAX®

PTCL, CTCL

REVLIMID®

NHL

CC-122NHL, CLL

JCAR017NHL

IMFINZI™ NHL, CLL

CC-486NHLLymphoma

& Leukemia7

REVLIMID®

NDMM, RRMM

POMALYST®

RRMM

THALOMID®

NDMM, RRMM

CC-122RRMM

CC-220RRMM


bb2121RRMM

MarizomibRRMM

ACY-241RRMM

CC-486RRMM

MultipleMyeloma

10

21

LuspaterceptMF

CC-90002NHL

Expanding Our Leadership in Inflammation & ImmunologyExpanding Our Leadership in Inflammation & Immunology

Unique Value Proposition Robust Life Cycle Plan

OTEZLA®: A Blockbuster for Immune-Inflammatory DiseasesOTEZLA®: A Blockbuster for Immune-Inflammatory Diseases

EventExpected

Timing

Submit sNDAOnce daily formulation

Initiate Phase III TrialScalp Psoriasis

Phase III DataBehçet’s Disease

Phase II DataUlcerative Colitis

2017

2017

2018

2018

Initiate Phase III TrialAnkylosing Spondylitis

PDE4 Inhibition Modulation of Target Inflammatory

Cytokines

Extracellular Pathways

Growing Market Position

0%

5%

10%

15%

20%

25%

30%

35%

40%

Psoriasis Market Share

TNF-

Target

IL-12/23

Target

IL-17

Target

ENBREL®

STELARA®

HUMIRA®

OTEZLA®

COSENTYX®

Immune Cell

TALTZ ®

Source: SHS claims data through March 2017, last updated May 26, 2017; Symphony prescriber-level data through June 30, 2017

22

2017

Phase III Ozanimod Data in Multiple SclerosisPhase III Ozanimod Data in Multiple Sclerosis

23

Emerging Ozanimod Profile Targets Significant Unmet Needs in RMS

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

Potentially best-in-class next-generation S1P modulator

Phase III SUNBEAM™ and RADIANCE™ trials evaluating ozanimod in RMS achieved primary endpoint and key secondary endpoints. Full data set will be presented at the 2017 ECTRIMS congress.

On-track for NDA submission by YE:17

Ozanimod

Advancing a Portfolio of Oral, Complementary and Potentially Disruptive Therapies for Inflammatory Bowel DiseasesAdvancing a Portfolio of Oral, Complementary and Potentially Disruptive Therapies for Inflammatory Bowel Diseases

Mechanism of Action:

Next-Gen S1PModulator

OligonucleotideTargeting Smad 7

PDE4Inhibitor

Phase II Trial: Crohn’s DiseaseData Expected in 2017

Ulcerative ColitisData Expected in 2017

Ulcerative ColitisData Expected in 2017

Phase III Trial:Ulcerative ColitisData Expected in 2018

Crohn’s DiseaseData Expected in 2018 Ulcerative Colitis

Initiate in 2018

GED-0301Ozanimod

24

REVLIMID®

Del 5q MDS

VIDAZA®

MDS, AML

IDHIFA®

IDH2 RRAML

CC-486 MDS, AML


CC-90002AML

IMFINZI™ MDS, AML

CC-90009AML

FT-1101MDS, AML

MyeloidDisease

10

MarizomibGBM

CC-486NSCLC, mBC

CC-122HCC



ABRAXANE®

PanC, NSCLC, mBC

AG-881Glioma

SolidTumors







12OzanimodIBD, MS

OTEZLA®

PSOR, PSAOTEZLA®


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

REVLIMID®

MCL

ISTODAX®

PTCL, CTCL

REVLIMID®

NHL

CC-122NHL, CLL

JCAR017NHL

IMFINZI™ NHL, CLL

CC-486NHLLymphoma

& Leukemia7

REVLIMID®

NDMM, RRMM

POMALYST®

RRMM

THALOMID®

NDMM, RRMM

CC-122RRMM

CC-220RRMM


bb2121RRMM

MarizomibRRMM

ACY-241RRMM

CC-486RRMM

MultipleMyeloma

10

25

LuspaterceptMF

CC-90002NHL

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

1919

8

OMP-313M32 JTX-2011 CC-90002CC-900011313 CC-92480

2020

Entering a Pivotal Inflection Point with Multiple Value Drivers to Sustain Growth from 2020-2030Entering a Pivotal Inflection Point with Multiple Value Drivers to Sustain Growth from 2020-2030

>$21B revenue

2020 (E)

$13-13.4Brevenue

2017 (E)

26

bb2121

Luspatercept

<$500M $1B >$2B

2022CC-220

Pipeline Targets High Unmet Medical Need andProvides Significant, Long-term Commercial OpportunitiesPipeline Targets High Unmet Medical Need andProvides Significant, Long-term Commercial Opportunities

2018

2017

2019

DrugPotentialApproval

CurrentPeak Potential Drug

Potential Approval

CurrentPeak Potential

Ozanimod

IDHIFA®

GED-0301

2020CC-486

2020

2021ACY-241

2020

JCAR017

2019

2021Marizomib

2019

IMFINZI™

2021CC-122

2021RPC-4046

Note: First IMFINZI™(durvalumab) approval for a hematologic malignancy

L E G E N DCurrent Estimate of

Peak Sales Potential: 27

S U M M A R Y

Strong Momentum. Approaching Inflection PointS U M M A R Y

Strong Momentum. Approaching Inflection Point

Increasing Momentum

Key commercial growth drivers in place

Significant Inflection

Significant pipeline catalysts expected

Promising Future

Positioned to grow beyond 2020

2012 2013 2014 2015 2016 20302021

28

Cantor Fitzgerald 3rd Annual Healthcare Conference

September 26, 2017


PURSUITS IN SCIENCE


PURSUITS IN SCIENCE

Reconciliation Tables


PURSUITS IN SCIENCE


PURSUITS IN SCIENCE

Reconciliation TablesReconciliation Tables

31

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 onmanagement’s view of performance 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 theseadjusted financial measures provide useful and meaningful information to us and investors because they enhance investors’ understanding of thecontinuing operating performance of our business and facilitate the comparison of performance between past and future periods. These adjusted financialmeasures are non-GAAP measures and should be considered in addition to, but not as a substitute for, the information prepared in accordance with U.S.GAAP. When preparing these supplemental non-GAAP financial measures we typically exclude certain GAAP items that management does not consider tobe normal, recurring, cash operating expenses but that may not meet the definition of unusual or non-recurring items. Other companies may define thesemeasures in different ways. 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 divestituresfrom our adjusted financial results that are either non-cash or not normal, recurring operating expenses due to their nature, variability of amounts, and lackof predictability as to occurrence and/or timing. These amounts may include non-cash items such as the amortization of acquired intangible assets,amortization of purchase accounting adjustments to inventories, intangible asset impairment charges and expense or income related to changes in theestimated 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 restructuringprogram.


32

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

Collaboration-related Upfront Expenses: We exclude collaboration-related upfront expenses from our adjusted financial results because we do not considerthem to be normal, recurring operating expenses due to their nature, variability of amounts, and lack of predictability as to occurrence and/or timing. Upfrontpayments to collaboration partners are made at the commencement of a relationship anticipated to continue for a multi-year period and provide us withintellectual property rights, option rights and other rights with respect to particular programs. The variability of amounts and lack of predictability ofcollaboration-related upfront expenses makes the identification of trends in our ongoing research and development activities more difficult. We believe thepresentation of adjusted research and development, which does not include collaboration-related upfront expenses, provides useful and meaningful informationabout our ongoing research and development activities by enhancing investors’ understanding of our normal, recurring operating research and developmentexpenses and facilitates comparisons between periods and with respect to projected performance. All expenses incurred subsequent to the initiation of thecollaboration arrangement, such as research and development cost-sharing expenses/reimbursements and milestone payments up to the point of regulatoryapproval are 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 notconsider such costs to be normal, recurring operating expenses due to their nature, variability of amounts, and lack of predictability as to occurrence and/ortiming. Research and development asset acquisition expenses includes expenses to acquire rights to pre-commercial compounds from a collaboration partnerwhen there will be no further participation from the collaboration partner or other parties. The variability of amounts and lack of predictability of research anddevelopment asset acquisition expenses makes the identification of trends in our ongoing research and development activities more difficult. We believe thepresentation of adjusted research and development, which does not include research and development asset acquisition expenses, provides useful andmeaningful information about our ongoing research and development activities by enhancing investors’ understanding of our normal, recurring operatingresearch 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 associatedwith facilities to be closed, employee separation costs and costs to move operations from one location to another. We do not frequently undertake restructuringinitiatives and therefore do not consider such costs to be normal, recurring operating expenses.


33

Certain Other Items: We exclude certain other significant items that may occur occasionally and are not normal, recurring, cash operating expenses from ouradjusted financial results. Such items are evaluated on an individual basis based on both the quantitative and the qualitative aspect of their nature and generallyrepresent items that, either as a result of their nature or magnitude, we would not anticipate occurring as part of our normal business on a regular basis. Whilenot all-inclusive, examples of certain other significant items excluded from adjusted financial results would be: expenses for significant fair value adjustments toequity investments, significant litigation-related loss contingency accruals 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 financialresults. The net income tax impact of the non-tax adjustments includes the impact on both current and deferred income taxes and is based on the taxability ofthe adjustment under local tax law and the statutory tax rate in the tax jurisdiction where the adjustment was incurred.

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 andare not normal, recurring operating expenses (or benefits), including adjustments related to acquisitions, divestitures, collaborations, certain adjustments tothe amount of unrecognized tax benefits related to prior year tax positions, and other similar items. We also exclude excess tax benefits and tax deficiencies thatarise upon vesting or exercise of share-based payments recognized as income tax benefits or expenses due to their nature, variability of amounts, and lack ofpredictability as to occurrence 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 forthe fiscal years ended 2016, 2015, 2014, 2013 and 2012.


34

2016

2015

2014

2013

2012

Net

inco

me

- GA

AP

1,999

$

1,602

$

2,000

$

1,450

$

1,456

$

Befo

re ta

x ad

justm

ents:

Cost

of g

oods

sold

(exc

luding

am

ortiz

ation

o

f acq

uired

inta

ngibl

e as

sets)

:

Sh

are-

base

d co

mpe

nsat

ion e

xpen

se

(1)

33

32

26

18

13

Prod

ucts

exite

d or

to b

e ex

ited

- Pha

rmion

(2)

-

-

-

-

(2)

Rese

arch

and

dev

elopm

ent:

Shar

e-ba

sed

com

pens

ation

exp

ense

(1)

253

25

1

197

14

5

102

Co

llabo

ratio

n-re

lated

upf

ront

exp

ense

(3)

816

1,4

02

45

4

575

19

0

Rese

arch

and

dev

elopm

ent a

sset

acq

uisitio

n ex

pens

e(4

)89

3

-

-

-

-

I

PR&

D im

pairm

ent

(5)

-

-

129

-

12

3

Sellin

g, ge

nera

l and

adm

inistr

ative

:Sh

are-

base

d co

mpe

nsat

ion e

xpen

se(1

)32

0

294

22

5

163

11

6

Litig

ation

-relat

ed lo

ss c

ontin

genc

y ac

crua

l exp

ense

(6)

199

-

-

-

-

Set

tlem

ent o

f con

tinge

nt o

bliga

tion

(7)

-

-

25

-

-

Am

ortiz

ation

of a

cquir

ed in

tang

ible

asse

ts(8

)45

9

279

25

8

263

19

5

Acq

uisitio

n re

lated

(gain

s) c

harg

es a

nd re

struc

turin

g, ne

t:Ch

ange

in fa

ir va

lue o

f con

tinge

nt c

onsid

erat

ion(9

)21

(8

)

49

171

16

6

Acq

uisitio

n co

sts(1

0)-

29

7

-

-

3

Re

struc

turin

g ch

arge

s(1

1)17

10

-

-

-

Oth

er in

com

e (e

xpen

se),

net:

Non

-ope

ratin

g im

pairm

ent a

djustm

ents

(12)

272

-

-

80

-

Inco

me

tax

prov

ision

:Es

timat

ed ta

x im

pact

from

abo

ve a

djustm

ents

(13)

(432

)

(3

99)

(304

)

(3

12)

(199

)

N

on-o

pera

ting

tax

adjus

tmen

ts(1

4)(8

0)

122

40

10

-

N

et in

com

e -

Adju

sted

4,770

3,882

3,099

2,563

2,163

Net

inco

me

per c

omm

on sh

are

- A

djuste

dBa

sic6.

14$

4.

90$

3.

86$

3.

10$

2.

51$

D

ilute

d5.

94$

4.

71$

3.

71$

2.

98$

2.

45$

Expla

natio

n of

adju

stmen

ts:(1

)Ex

clude

shar

e-ba

sed

com

pens

ation

exp

ense

tota

ling

$606

for t

he tw

elve-

mon

th p

eriod

end

ed D

ecem

ber 3

1, 20

16, $

577

for t

he tw

elve-

mon

th p

eriod

end

ed D

ecem

ber

31

, 201

5, $4

48 fo

r the

twelv

e-m

onth

per

iod e

nded

Dec

embe

r 31,

2014

, $32

6 fo

r the

twelv

e-m

onth

per

iod e

nded

Dec

embe

r 31,

2013

and

$23

1 fo

r the

twelv

e-m

onth

perio

d en

ded

Dec

embe

r 31,

2012

. (2

)Ex

clude

the

net (

bene

fit) o

f act

ivitie

s aris

ing fr

om th

e ac

quisi

tion

of P

harm

ion C

orp.

(Pha

rmion

) tha

t wer

e ex

ited.

(3)

Exclu

de u

pfro

nt p

aym

ent e

xpen

se fo

r res

earc

h an

d de

velop

men

t coll

abor

ation

arra

ngem

ents.

(4)

Exclu

de re

sear

ch a

nd d

evelo

pmen

t ass

et a

cquis

ition

expe

nses

.(5

)Ex

clude

in-p

roce

ss re

sear

ch a

nd d

evelo

pmen

t (IP

R&D

) im

pairm

ents

reco

rded

as a

resu

lt of

cha

nges

in e

stim

ated

pro

babil

ity-w

eight

ed c

ash

flow

s.(6

)Ex

clude

loss

con

tinge

ncy

accr

ual e

xpen

se re

lated

to a

con

tract

ual d

isput

e.(7

)Ex

clude

settl

emen

t of a

con

tinge

nt o

bliga

tion

to m

ake

mat

ching

con

tribu

tions

to a

non

-pro

fit o

rgan

izatio

n.(8

)Ex

clude

am

ortiz

ation

of i

ntan

gible

asse

ts ac

quire

d in

the

acqu

isitio

ns o

f Pha

rmion

, Glou

ceste

r Pha

rmac

eutic

als, I

nc. (

Glou

ceste

r), A

brax

is Bi

oScie

nce

Inc.

(Abr

axis)

, Celg

ene

Avil

omics

Res

earc

h, In

c. (A

vila)

, and

Qua

ntice

l Pha

rmac

eutic

als, I

nc. (

Qua

ntice

l). T

he e

xclud

ed a

mor

tizat

ion e

xpen

se fo

r the

twelv

e-m

onth

p

eriod

end

ed D

ecem

ber 3

1, 20

16 in

clude

s $10

2 re

lated

to th

e im

pairm

ent a

nd a

ccele

rate

d am

ortiz

ation

of a

n int

angib

le as

set a

cquir

ed in

the

Avil

a ac

quisi

tion.

(9)

Exclu

de c

hang

es in

the

fair

value

of c

ontin

gent

con

sider

ation

relat

ed to

the

acqu

isitio

ns o

f Glou

ceste

r, A

brax

is, A

vila,

Nog

ra P

harm

a Li

mite

d an

d

Qua

ntice

l.(1

0)Ex

clude

equ

ity c

ompe

nsat

ion a

nd o

ther

fees

and

cos

ts re

lated

to th

e ac

quisi

tions

of R

ecep

tos,

Inc.

(Rec

epto

s) a

nd Q

uant

icel.

(11)

Exclu

de re

struc

turin

g ch

arge

s rela

ted

to o

ur re

locat

ion o

f cer

tain

oper

ation

s int

o ou

r tw

o Su

mm

it, N

J loc

ation

s as w

ell a

s cos

ts as

socia

ted

w

ith c

erta

in he

adco

unt r

educ

tions

.(1

2)Ex

clude

non

-ope

ratin

g im

pairm

ent a

djustm

ents.

For

the

twelv

e-m

onth

per

iod e

nded

Dec

embe

r 31,

2016

, exc

lude

fair

value

adju

stmen

t to

our e

quity

inve

stmen

t in

Juno

Ther

apeu

tics,

Inc.

per

ASC

320

"Inv

estm

ents—

Deb

t and

Equ

ity S

ecur

ities."

For

the

twelv

e-m

onth

per

iod e

nded

Dec

embe

r 31,

2013

, exc

lude

impa

irmen

t of r

oyalt

y

rece

ivable

ass

et th

at w

as re

ceive

d in

Apr

il 201

1 as

par

tial c

onsid

erat

ion in

the

sale

of th

e no

n-co

re a

sset

s obt

ained

by

Celge

ne in

the

acqu

isitio

n of

Abr

axis.

(13)

Exclu

de th

e es

timat

ed ta

x im

pact

from

the

abov

e ad

justm

ents.

(14)

(or b

enef

its),

includ

ing a

djustm

ents

relat

ed to

acq

uision

s, div

estit

ures

, coll

abor

ation

s, ce

rtain

adjus

tmne

ts to

the

amou

nt o

f unr

ecog

nized

tax

bene

fits r

elate

d to

prio

rye

ar ta

x po

sition

s, an

d ot

her s

imila

r ite

ms.

We

also

exclu

de e

xces

s tax

ben

efits

and

tax

defic

iencie

s tha

t aris

e up

on v

estin

g or

exe

rcise

of s

hare

-bas

ed p

aym

ents

reco

gnize

d as

inco

me

tax

bene

fits o

r exp

ense

s due

to th

eir n

atur

e, va

riabil

ity o

f am

ount

s, an

d lac

k of

pre

dicta

bility

as t

o oc

curre

nce

and/

or ti

ming

.

Twelv

e-M

onth

Per

iods E

nded

Dec

embe

r 31,

Cel

gene

Cor

pora

tion

and

Subs

idia

ries

Rec

onci

liatio

n of

GA

AP

to A

djus

ted

Net

Inco

me

(In m

illio

ns, e

xcep

t per

sha

re d

ata)

Exclu

de o

ther

non

-ope

ratin

g ta

x ex

pens

e ite

ms.

Non

-ope

ratin

g ta

x ite

ms i

nclud

e ite

ms w

hich

may

occ

ur o

ccas

ionall

y an

d ar

e no

t nor

mal,

recu

rring

ope

ratin

g ex

pens

es

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