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Q3 2016 Conference CallOctober 27, 2016
Q3 2016 Earnings Call
Mark Alles, Chief Executive Officer
Peter Kellogg, Chief Financial Officer
Michael Pehl, President, Hematology & Oncology
Q&A
Scott Smith, President, Global I&I
Jackie Fouse, President & Chief Operating Officer
2
Forward 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” and similarexpressions. Forward-looking statements are based on management’s current plans, estimates, assumptions and projections, and speakonly as of the date they are made. We undertake no obligation to update any forward-looking statement in light of new information orfuture events, except as otherwise required by law. Forward-looking statements involve inherent risks and uncertainties, most of which aredifficult to predict and 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 our Annual Report onForm 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.
3
Mark Alles
Q3 2016: Exceptional Results; Advancing Transformational Opportunities
5
Exceptional Q3:16 performance driven by increasing demand and duration for key products Achieving meaningful leverage while advancing next-generation growth drivers Updating 2016 guidance
Delivering Outstanding ResultsDelivering Outstanding Results
Key data supports transformative potential of late-stage assets Continued geographic expansion and market access driving global growth Expect to achieve high-end of the 2017 net product sales and adjusted EPS targets
Accelerating Near-Term GrowthAccelerating Near-Term Growth
Filed 8 investigational new drug applications year-to-date Investing in and advancing high-potential next generation therapies Well-positioned to deliver strong growth through 2020 and beyond
Driving Innovation & Long-Term Growth Driving Innovation & Long-Term Growth
Peter Kellogg
Strong product growth across all franchises Continue to invest in R&D to advance the pipeline
Exceptional Q3 2016 Operating Results
7
Q3:16 year-over-year net product sales grew 28% and adjusted diluted EPS grew 28% Adjusted operating margins improved by 80 bps
Financial HighlightsFinancial Highlights
Excellent Performance on Operating MetricsExcellent Performance on Operating Metrics
2016 adjusted diluted EPS raised from $5.70-$5.75 to $5.88-$5.92 2016 REVLIMID® net product sales and total net product sales guidance updated 2017 REVLIMID® net product sales, total net product sales and adjusted diluted EPS targets updated
2016 Guidance and 2017 Targets Updated2016 Guidance and 2017 Targets Updated
Total Net Product Sales
Q3:14 Q3:15 Q3:16
$1,957
$2,313
$2,969
8
$ M
illio
ns ↑19% ↑18% ↑28%
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
Q3:15 Volume Price Fx /Hedge
Q3:16
↑28.4%↓0.7%↑24.6% ↑4.5%
Contribution to Q3:16 Total Net Product Sales Growth
$ M
illio
ns
Total Net Product Sales
Footnote: Growth Rates = Growth vs. Prior Year Period
Adjusted Diluted Earnings Per Share
$0.97
$1.23
$1.58
Q3:14 Q3:15 Q3:16
9
↑24% ↑27%
Dol
lars
Per
Sha
re
↑28%
Q3:15 Oper. Income
OIE Tax Rate
Share Count
Q3:16
Dol
lars
Per
Sha
re
$1.58$0.40$1.23 ($0.03) $0.04
Contribution to Q3:16 Adjusted Diluted EPS
($0.06)
Adjusted Diluted EPS
Footnote: Growth Rates = Growth vs. Prior Year Period
Q3:16 ∆ vs.Q3:15
YTD:16 ∆ vs.YTD:15
Product Gross Margin 96.6% ↑100 bps ↑80 bps
R&D expenses% of revenue
$644M21.6% ↑70 bps ↑150 bps
SG&A expenses% of revenue
$591M19.8% ↓50 bps ↓260 bps
Operating Margin 55.3% ↑80 bps ↑200 bps
Effective Tax Rate 15.4% ↑170 bps ↑70 bps
Key P&L Line Items (Adjusted)
10
Cash and Marketable Securities
• Cash flow from operations was approximately $723M during Q3:16• In Q3:16, purchased $273M of shares; YTD purchased $2.0B
$4.9B remaining under stock repurchase program at 9/30/16• Six strategic business development transactions YTD 2016
Upfront research and development expense of approximately $1.3B
11
(in Billions) 9/30/16 12/31/15
Cash and Marketable Securities $6.87 $6.55
Previous 2016 Guidance Updated 2016 Guidance
REVLIMID® ~$6.8B ~$7B
Total Net Product Sales ~$11B ~$11.2B
Adjusted Diluted EPS $5.70-$5.75 $5.88-$5.92
Updating 2016 Guidance and 2017 Targets
12
Previous 2017 Targets Updated 2017 Targets
REVLIMID® ~$8B >$8B
Total Net Product Sales $12.7B - $13.0B High end of the range
Adjusted Diluted EPS $6.75 - $7.00 High end of the range
Michael Pehl
Q3 2016 Hematology & Oncology Franchise Results
14
– Q3:16 net sales growth of +24% Y/Y; +8% Q/Q– Worldwide record performance for REVLIMID® and POMALYST®/IMNOVID®
Strong Net Product Sales and Franchise Operating MomentumStrong Net Product Sales and Franchise Operating Momentum
– REVLIMID® NDMM share increasing globally; Reimbursement secured in key markets– Increasing utilization of REVLIMID®- and POMALYST®-based triplets; Driving share and duration– ABRAXANE® maintains demand in U.S. while growing outside the U.S. for pancreatic cancer
2016 Product Growth Drivers On-Track2016 Product Growth Drivers On-Track
– NDA submission of enasidenib (AG-221) in RR AML by year-end– CC-122, durvalumab and luspatercept programs advancing– Acquisition of EngMab AG uniquely positions Celgene to pursue BCMA development in MM and NHL
Long-term Growth Drivers AdvanceLong-term Growth Drivers Advance
Q3 2016 REVLIMID® Net Sales Summary
15
$633 $760 $895$1,153
$457$540
$558
$738
Q3:13 Q3:14 Q3:15 Q3:16
US ROW
$1,090
$1,300$1,453
$1,891Current Results & Future Growth DriversCurrent Results & Future Growth Drivers
• Q3:16 net sales $1,891M; +30% Y/Y; +11% Q/Q• 2016 Growth Drivers
REVLIMID® strong duration and share trends globally NDMM launch momentum in U.S. and EU launch
countries Reimbursement in Italy; France expected in Q1:17
Russian tender in Q3:16
• Future Growth Drivers– Triplet combinations continue to become standard of care– REVLIMID® maintenance post-ASCT submitted in EU;
U.S. submitted in Q3:16, PDUFA date of Feb 24, 2017– Myeloma XI data expected at ASH– Updated NCCN guidelines and regulatory submissions in
combination with novel agents
Net Sales ($M)
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016
Global REVLIMID® Multiple Myeloma Momentum and Opportunity Continues to Grow
Vd control arms from ENDEAVOR/PANORAMA
Vd control arms from ENDEAVOR/PANORAMA
ASH 2015 and SWOG data release
ASH 2015 and SWOG data release
Updated mSMART & NCCN Guidelines
Updated mSMART & NCCN Guidelines
Rd approval in ndMM
Rd approval in ndMM
Phase III Rd+X readouts and FDA approvals
Phase III Rd+X readouts and FDA approvals
Rd+X clinical experience, later line market expansion
REVLIMID® re-challenge
Rd+X clinical experience, later line market expansion
REVLIMID® re-challenge
16
Rd+Dara POLLUX, REVLIMID®
Post-ASCT Maintenance US & EU Submissions
Rd+Dara POLLUX, REVLIMID®
Post-ASCT Maintenance US & EU Submissions
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016
Global REVLIMID® Multiple Myeloma Momentum and Opportunity Continues to Grow
Vd control arms from ENDEAVOR/PANORAMA
ASH 2015 and SWOG data release
Updated mSMART & NCCN Guidelines
Rd approval in ndMM
Phase III Rd+X readouts and FDA approvals
Rd+X clinical experience, later line market expansion
REVLIMID® re-challenge
17
REVLIMID® Post-ASCT Maintenance US & EU
Submissions
• Myeloma XI & Final MM-020 OS at ASH 2016
• NCCN Guidelines update• Regulatory submissions
with novel agents
• Myeloma XI & Final MM-020 OS at ASH 2016
• NCCN Guidelines update• Regulatory submissions
with novel agents
Q3 2016 POMALYST®/IMNOVID® Net Sales Summary
18
$77$118
$150$203$13
$63
$107
$138
Q3:13 Q3:14 Q3:15 Q3:16
US ROW
$90
$181
$257
$341Current Results & Future Growth DriversCurrent Results & Future Growth Drivers
• Q3:16 net sales $341M; +33% Y/Y; +7% Q/Q• Global launch continues
– Strong volume and duration trends– All time record TRx and NRx in U.S. in Q3:16
• 2016 Growth Drivers Market share continues to increase in reimbursed
markets in Europe Duration increasing across geographies
• Future Growth Drivers IMNOVID® EU approval for renal impairment data Updated NCCN guidelines and regulatory submissions in
combination with novel agents Enrollment of OPTIMISMM® (N=544) phase III
combination study with bortezomib expected to complete in H1:17
Net Sales ($M)
Q3 2016 ABRAXANE® Net Sales Summary
19
$132 $151 $145 $144
$38
$61 $85 $89
Q3:13 Q3:14 Q3:15 Q3:16
US ROW
$170
$212$230 $233
Current Results & Future Growth DriversCurrent Results & Future Growth Drivers• Q3:16 net sales $233M; +1% Y/Y; -6% Q/Q • 2016 Drivers
ABRAXANE® is a standard of care in the U.S. for metastatic pancreatic cancer
Increasing market share in Europe especially in metastatic pancreatic cancer
U.S. demand in breast and lung cancer stabilized• Future Growth Drivers
Data from abound® program at IASLC/WCLC Data from I/O combinations expected beginning in 2017 Phase III adjuvant pancreatic trial (apact®) data
expected in 2017
Net Sales ($M)
Q4 2016 Key Data Presentations
December:• Data from the abound® program with ABRAXANE® in NSCLC• Phase III Myeloma IX: REVLIMID® as induction and maintenance in
NDMM following ASCT• Final OS from MM-020• REMARC and CONTINUUM®
• Interim data from MAGNIFYTM with REVLIMID® in indolent lymphoma• CC-122 in combination with obinutuzumab in NHL• Phase II tnAcity® trial: ABRAXANE® in TNBC
November:• Phase I trial with marizomib in combination with bevacizumab in
recurrent glioblastoma*
20
* In collaboration with Triphase Accelerator Corporation
Luspatercept pivotal studies in MDS and beta-thalassemia advancing Significant progress with protein homeostasis and I/O pipeline; CC-122 and CC-90009 trials enrolling EngMab AG lead molecule EM901 highly complementary to our MM portfolio
Q3 and FY2016 Outstanding Progress; Accelerating Momentum
21
REVLIMID® as a backbone of therapy across all lines of therapy REVLIMID® net product sales guidance for 2016 now ~$7B POMALYST®/IMNOVID® sales strong; ABRAXANE® stable
REVLIMID® maintenance post-ASCT filed in the U.S.; Decisions for U.S. and EU expected in 2017 POMALYST®/IMNOVID® U.S. and EU labels updated with renal impairment data NDA submission of enasidenib (AG-221) in RR AML in the U.S. by YE16
Early- and Mid-Stage Programs AdvanceEarly- and Mid-Stage Programs Advance
Robust Results from Key Products
On-Track with Key Regulatory Activities
Scott Smith
Q3 2016 I&I Franchise Results
23
– Revenue continued to accelerate through Q3:16– Strong TRx trajectory relative to recent market entrants– Strengthening position in psoriasis and PsA as prescriber adoption, market share, and persistency continue to increase
Accelerating Sales Performance and Momentum for OTEZLA®Accelerating Sales Performance and Momentum for OTEZLA®
– Access and reimbursement in 20 countries to-date– Preparing for launch in major European markets and Japan– Advancing regulatory submissions in Eastern Europe, Asia and Latin America
Expanding OTEZLA®’s Global FootprintExpanding OTEZLA®’s Global Footprint
– Executing registration program for GED-0301 in Crohn’s disease; Phase Ib clinical & endoscopy outcomes at UEGW– GED-0301 UC phase II enrollment complete– Executing pivotal programs for ozanimod in MS and UC– Ozanimod Crohn’s disease phase II enrollment complete– CC-220 phase IIa showed positive trend across multiple measures of SLE disease activity, compared to placebo
Advancing Development of I&I PipelineAdvancing Development of I&I Pipeline
• Q3:16 net sales $275M; +98% Y/Y, +14% Q/Q growth
• Increasing OTEZLA® adoption in the U.S. amidst seasonal market declines in prescribing
• Access gains enabling launches in several key EMEA markets
• Achieved reimbursement in the UK and France, launching in Q4:16
• Longer-term data enhancing clinical profile
Advancing Revenue Growth Drivers for OTEZLA®
24
Current Results & Future Growth Drivers
$167 $175$217
$245
$16 $21
$25
$30
Q4:15 Q1:16 Q2:16 Q3:16US ROW
$183 $196
$242
$275
Net Sales ($M)
14% 10%
43%41%
8%7%
35% 42%
Aug-15 Jul-16
Biologics TopicalsOral Systemics No tx in prior 6 months
0%
5%
10%
15%
20%
25%
30%
35%
40%
ENBREL STELARA HUMIRACOSENTYX OTEZLA
Market Dynamics Supporting Positive US Launch Performance
25
• Systemic treatment market share continues to grow, following on sustained leadership in new-to-brand share, for both PsA and psoriasis
• Maintaining pre-biologic source of business, despite new market entrants
• Continuing to see favorable treatment retention
Note: Symphony data is subject to restatement; source of business calculated for new-to-brand patientsSource: Symphony Prescriber-level data through week ending 23 September 2016; SHS PTD claims data. Sept ‘16 feed for month ending July ‘16
OTEZLA®
22.4%
90%
Pre
-bio
logi
c
Psoriasis Market Share Psoriasis Source of Business (Based on therapy prior to OTEZLA® in the last 6 months)
Advancing Development of GED-0301
26
Objective: To explore signs of endoscopic improvement and clinical activity in a difficult-to-treat, moderate-to-severe Crohn’s patient population with confirmed endoscopic inflammation at baseline, including but not limited to:
• Both TNF-naïve and prior TNF-exposed patient population
• Prior surgeries• Proximal and distal disease
All patients had significant clinical and endoscopic disease at entry and spanned a broader geography
CD-001 Study OverviewCD-001 Study Overview
UC-002: UC POC (n=41)
UC-002: UC POC (n=41)
CD-002: 52 Week Pivotal Ph III (n=1,064)
CD-002: 52 Week Pivotal Ph III (n=1,064)
CD-003: 12 Week Pivotal Ph III (n=798)
CD-003: 12 Week Pivotal Ph III (n=798)
2015 2016 2017 2018 2019
Approval
CD-005: PD
(n=20)
CD-005: PD
(n=20)
CD-004: Long Term Extension (n~1,400)
CD-004: Long Term Extension (n~1,400)
CD-001: Exploratory Ph Ib
(n=63)
CD-001: Exploratory Ph Ib
(n=63)IGON-1*
Ph II POC (n=166)IGON-1*
Ph II POC (n=166)
201420132012
* Placebo-controlled phase II proof-of-concept trial
Emerging GED-0301 Profile to Provide Differentiated Benefit/Risk
27Evidence demonstrated in IGON-1 trial to-dateLegend: To be assessed in future trials
Clinical Response and Remission
Clinical Response and Remission
Once-dailyOral DosingOnce-daily
Oral Dosing
Negligible Systemic Exposure
Negligible Systemic Exposure
Endoscopic ImprovementEndoscopic
Improvement
Efficacy in TNF-exposed PatientsEfficacy in TNF-
exposed Patients
Rapid Onset of Clinical EfficacyRapid Onset of
Clinical Efficacy
Efficacy in Left-sided Disease
Efficacy in Left-sided Disease
Long-term Endoscopic Remission
Long-term Endoscopic Remission
GED-0301AEs and SAEs
Similar to PlaceboAEs and SAEs
Similar to Placebo
IGON Program Findings
Emerging GED-0301 Profile to Provide Differentiated Benefit/Risk
28Evidence demonstrated in IGON-1 and CD-001 trials to-dateLegend: To be assessed in future trials
Clinical Response and Remission
Clinical Response and Remission
Once-dailyOral DosingOnce-daily
Oral Dosing
Negligible Systemic Exposure
Negligible Systemic Exposure
Endoscopic ImprovementEndoscopic
Improvement
Efficacy in TNF-exposed PatientsEfficacy in TNF-
exposed Patients
Rapid Onset of Clinical EfficacyRapid Onset of
Clinical Efficacy
Efficacy in Left-sided Disease
Efficacy in Left-sided Disease
Long-term Endoscopic Remission
Long-term Endoscopic Remission
GED-0301AEs and SAEs
Similar to PlaceboAEs and SAEs
Similar to Placebo
Updated GED-0301 Program Findings
Q4 2016 Key Data Presentations
November:• OTEZLA® 4-year efficacy and safety in psoriatic arthritis
• OTEZLA® pooled 3-year safety in psoriatic arthritis from PALACE 1-3
October:• GED-0301 exploratory phase Ib in Crohn’s disease• RPC4046 proof of concept phase II in eosinophilic esophagitis• Ozanimod TOUCHSTONE (phase II) open-label extension efficacy and
safety in ulcerative colitis• OTEZLA® pooled 3-year results from ESTEEM 1 and 2 in psoriasis and
PALACE 1-3 in psoriatic arthritis• OTEZLA® phase IIb in Japanese patients with psoriasis• CC-220 phase II in systemic lupus erythematosus
December:• GED-0301 exploratory phase Ib in Crohn’s disease
29
Maximizing I&I Portfolio Value
30
Continue strong operating momentum for OTEZLA® in the U.S. Accelerate uptake in early launch markets Advance launch preparations for multiple major European markets and Japan Expand eligible patient base across geographies and indications
Maximizing the OTEZLA® Opportunity
Advance ozanimod phase III trial in ulcerative colitis Complete ozanimod phase II trial in Crohn’s disease Progress enrollment of GED-0301 pivotal trials in Crohn’s disease Complete GED-0301 phase II trial in UC
Moving Ozanimod and GED-0301 Forward
Complete CC-220 phase IIb trial in cutaneous lupus Initiate CC-90001 idiopathic pulmonary fibrosis phase II trial
Advancing Development of the I&I Pipeline
Jackie Fouse
2016 Anticipated Milestones
Regulatory Submissions/Decisions Submit REVLIMID® in U.S. and EU for maintenance post-ASCT Submit POMALYST® renal impairment data in US and EUX Submit ABRAXANE® for early-stage breast cancer in EU Submit OTEZLA® for PSOR in Japan CHMP opinion on REVLIMID® for MCL
Trial Enrollment Complete enrollment in AUGMENT® – REVLIMID® in RR FL Complete enrollment in apact® – ABRAXANE® in adjuvant PanC Complete enrollment in RELIEF® – OTEZLA® in Behçet’s disease Complete enrollment in Ph II trial of CC-486+pembrolizumab in NSCLC Initiate enrollment in Ph I trial of BCMA CART in RRMM Initiate enrollment in FUSION™ program with durvalumab in NDMM,
RRMM, NHL, MDS/AML
Trial Initiations Initiate pivotal trial with CC-122 in NHL Initiate Ph III trial with OTEZLA® in AD Initiate second Ph III trial with GED-0301 Initiate Ph III trial with RPC4046 in EoE
Financial Performance Total Net Product Sales ~$11.0B1 Total Net Product Sales ~$11.2B2
Net REVLIMID® sales ~$6.8B1 Net REVLIMID® sales ~$7.0B2
Adj. operating margin ~54.0%1
Adj. EPS $5.70-$5.751 Adj EPS $5.88 to $5.922
32
Clinical DataX Ph III REMARC – REVLIMID® in DLCBL maintenance Ph III CONTINUUM® – REVLIMID® in CLL maintenanceX Ph III ETNA – ABRAXANE® in neoadjuvant BC Ph III POSTURE® – long-term radiographic data of OTEZLA® in AS Ph III PSA-006 – OTEZLA® in biologic-naïve PsA Ph II CC-122 in NHLX Ph II motolimod (VTX-2337) in SCCHN and ovarian cancer Ph II portion of tnAcity® – ABRAXANE® in TNBC Ph II OTEZLA® in AD ✓ and UC Ph II CC-220 in SLE Ph II RPC4046 in EoE Pharmacokinetic comparability study – OTEZLA® once-daily formulation
R&ED File at least 8 IND’s Advance at least 2 compounds to mid-to-late stage development
1. July 2016 2. Updated October 2016
Pipeline Acceleration Through YE 2018
33
Phase III Data 1919
>20>20
15-1715-17
Phase II and POC Data
New INDs
Driving Sustainable High Growth
News flow from medical meetings on commercial products and pipeline
Strong commercial momentum
On-track for 2017 and 2020 targets
34
Q&A
Appendix
Celgene Pipeline
37
Celgene Pipeline
38
Celgene Pipeline
39
Celgene Pipeline
40
REVLIMID® Multiple Myeloma Late Stage Programs
Patient Population Maintenance Post-VMP induction
Trial NameMM-026ARUMM
Phase III
Target Enrollment 350
Design
2:1 randomizationInduction with Melphalan/prednisone/bortezomib (VMP)
for 6-9 cyclesArm A: REVLIMID® (10mg) d 1-21
for 28-day cycleArm B: Placebo d 1-21 for 28-day cycle
Primary Endpoint Progression Free Survival
Status Trial enrolling
41
REVLIMID® Multiple Myeloma Late Stage Programs
Patient Population Induction and Maintenance in ASCT EligibleTrial Name MYELOMA XI
Phase III
Target Enrollment 3,970
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) d 1-21, Cyclophosphamde (500mg) d1,8, dexamethasone (40mg) d1-4,12-15 for minimum of 4 28-day cycles
Arm C: Cyclophosphamde (500mg) d1,8, Carfilzomib (20 mg/m2) d 1,2 cycle 1 then (36 mg/m2) d 1,2,8,9,15,16, REVLIMID® (25mg) d1-21, Dexamethasone (40mg) d 1-4,8,9,15,16 for 4 21-day cycles
Patients with no change, progressive disease, PR or MR randomized toArm A: Bortezomib (1.3mg/m2) d 1,4,8,11, Cyclophosphamide (500mg) d 1,8,15, Dexamethasone (20mg) d 1,2,4,5,8,9,11,12 for
max of 8 21-day cyclesArm B: No treatmentAll patients go to SCT
After SCT randomization to:Arm A: REVLIMID® (10mg) d 1-21 for 28-day cycle to disease progression
Arm B: No maintenance
Primary Endpoint Overall Survival and Progression Free Survival
Status Data expected at ASH 2016
42
POMALYST®/IMNOVID® Multiple Myeloma Late Stage Programs
Patient Population RRMM
Trial NameMM-007
OPTIMISMM®
Phase III
Target Enrollment 782
Design
Arm A: POMALYST®/IMNOVID® (4mg), bortezomib (1.3 mg/m2 IV) and low-dose dexamethasone to disease
progressionArm B: Bortezomib (1.3 mg/m2 IV) and low-dose
dexamethasone to disease progression
Primary Endpoint Progression Free Survival
Status Trial enrolling; Data in 2018E
43
MDS/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 enrolling Trial enrolling
44
MDS/AML/MF Late Stage Programs
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
Target Enrollment 210 300
DesignArm A: Luspatercept (Starting dose of 1.0 mg/kg
subcutaneous injection every 3 weeksArm B: Placebo (Subcutaneous injection every 3 weeks)
Arm A: Luspatercept (1mg/kg plus Best Supportive CareArm 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.
Status Trial enrolling Trial enrolling
45
MDS/AML/MF Late Stage Programs
Patient Population IDH2 Mutant AML
Molecule Enasidenib (AG-221, CC-90007)
Trial Name IDHENTIFYTM
Phase III
Target Enrollment 280
Design Arm A: Enasidenib (100 mg daily , 28-day cycle) + Best supportive care
Arm B: Best supportive care
Primary Endpoint Overall survival
Status Trial enrolling
46
REVLIMID® Chronic Lymphocytic Leukemia Late Stage Program
Patient Population Maintenance in 2nd Line CLL
Trial NameCLL-002
CONTINUUM®
Phase III
Target Enrollment 400
DesignArm A: REVLIMID® (starting dosage 2.5mg/day escalated to
10mg/day) until disease progression - 28-day cycleArm B: Placebo
Primary Endpoint Overall Survival and ProgressionFree Survival
StatusEnrollment complete
Data expected at ASH 2016
47
REVLIMID® Lymphoma Late Stage Programs
Patient Population Maintenance in Patients with DLBCL responding to R-CHOP to induction therapy Newly Diagnosed Follicular Lymphoma
Trial Name REMARC RELEVANCE®
Phase III III
Target Enrollment 621 1,000
DesignArm A: REVLIMID® D1-21 of 28-day
cycle for 24 monthsArm B: Placebo D1-21 of 28-day
cycle for 24 months
Arm A: REVLIMID® (starting dose 20mg) D2-22 for up to 18 28-day cycles and 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
Primary Endpoint Progression Free Survival Complete Response Rate and Progression Free Survival
StatusPrimary endpoint met
Data expected at ASH 2016Enrollment complete
Data in 2017E
48
REVLIMID® Lymphoma Late Stage Programs
Patient Population Relapsed or Refractory Follicular Lymphoma Untreated Activated B-Cell DLBCL
Trial NameAUGMENTTM
NHL-007ROBUST®
DLC-002
Phase III III
Target Enrollment 350 560
Design
Arm A: REVLIMID® (10-20mg) D1-21 / Rituximab 375 mg/m2 weekly for cycle 1 then D 1 of cycles 2-5 for 5
28-day cyclesArm B: Placebo D1-21, / Rituximab 375 mg/m2 weeklyfor cycle 1 then D 1 of cycles 2-5 for 5 28-day cycles
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 Progression Free Survival
StatusTrial enrollingData in 2017E
Trial enrollingData in 2019E
49
REVLIMID® Lymphoma Late Stage Programs
Patient Population Relapsed or Refractory Indolent Lymphoma
Trial NameMAGNIFYTM
NHL-008
Phase III
Target Enrollment 500
Design
Arm A: REVLIMID® (10-20mg) D1-21 / Rituximab 375 mg/m2 weekly for cycle 1 then D 1 of cycles 3, 5, 7,9 and 11 for 12 28-day cycles followed by REVLIMID® (10mg) D1-21 / Rituximab 375 mg/m2 D 1 of cycles 13, 15,
17,19, 21, 23, 25, 27 and 29 for 18 28-day cycles followed by REVLIMID® (10mg) D 1-21 until disease progression – 28 day cycle
Arm B: REVLIMID® (10-20mg) D1-21 / Rituximab 375 mg/m2 weekly for cycle 1 then D 1 of cycles 3, 5, 7,9 and 11 for 12 28-day cycles followed by REVLIMID® (10mg) D1-21 / Rituximab 375 mg/m2 D 1 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
50
ABRAXANE® Solid Tumor Late Stage Programs
Patient Population Maintenance After Induction in Squamous Non-Small Cell Lung Cancer
Adjuvant Therapy in Surgically Resected Pancreatic Cancer
Trial Name NSCL-003PANC-003
apact®
Phase III III
Target Enrollment 540 846
Design
Induction: ABRAXANE® (100 mg/m2) D 1, 8,and 15 / Carboplatin (6 mg min/mL) D 1 for
4 21-day cyclesMaintenance:
Arm A: ABRAXANE® (100 mg/m2) D 1 and 8 plus BSC until disease progression –
21-day cycleArm B: BSC until disease progression
Arm A: ABRAXANE® (125 mg/m2) / Gemcitabine (1000 mg/m2) D 1, 8 and 15 for 6 28-day cycles
Arm B: Gemcitabine (1000 mg/m2) D 1, 8 and 15 for 6 28-day cycles.
Primary Endpoint Progression Free Survival Disease Free Survival
Status Trial enrollingEnrollment complete
Data in 2017E
51
ABRAXANE® Solid Tumor Late Stage Programs
Patient Population First-Line Triple Negative Metastatic Breast Cancer First Line Stage IIIB / IV Squamous NSCLC
Trial NametnAcity®
ABI-007-MBC-001NSCL-003
abound.sqm®
Phase II/III III
Target Enrollment 240/550 540
Design
Phase IIArm A: ABRAXANE® 1(25mg/m2) / Gemcitabine (1000 mg/m2) D 1
and 8 – 21-day cycleArm B: ABRAXANE® (125mg/m2) / Carboplatin AUC 2 IV, D 1 and
8 – 21-day cycleArm C: Gemcitabine (1000 mg/m2) / Carboplatin AUC 2 IV, D 1
and 8 – 21-day cyclePhase III
Arm 1: Selected phase II ABRAXANE® armArm 2: Gemcitabine (1000 mg/m2) / Carboplatin AUC 2 IV, D 1
and 8 – 21-day cycle
Arm A: Induction – ABRAXANE® (100 mg/m2) D 1, 8 and 15 / Carboplatin (6 mg/min/ml) D 1 of a 21-day cycle;
Maintenance – ABRAXANE® (100 mg/m) D 1 and 8 of a 21-day cycle or Best supportive care
Arm B: Induction – ABRAXANE® (100 mg/m2) D 1, 8 and 15 / Carboplatin (6 mg/min/ml) D 1 of a 21-day cycle;
Maintenance – Best supportive care
Primary Endpoint Progression Free Survival Progression Free Survival
StatusTrial enrolling;
Phase II data expected at SABCS 2016Trial enrollingData in 2017E
52
I&I Late Stage Programs
Patient Population Untreated Moderate-to-SevereLate Stage Psoriatic Arthritis Active Behçet’s Disease
Molecule OTEZLA® OTEZLA®
Trial Name PSA-006BCT-002RELIEFTM
Phase III III
Target Enrollment 214 204
DesignArm A: OTEZLA® single agent (30mg)
twice dailyArm B: Placebo
Arm A; Placebo for 12 weeks followed by 30mg OTEZLA® twice daily for 52-weeksArm B: 30mg OTEZLA® twice daily for 64
weeks
Primary Endpoint ACR 20 at Week 16Area under the curve (AUC) for the number of oral ulcers from baseline through week
12
StatusPrimary endpoint met
Data at an major medical congress expected
Trial enrollingData in 2017E
53
I&I Late Stage Programs
Patient Population Active Crohn’s Disease Moderate to Severe Ulcerative Colitis
Molecule GED-0301 Ozanimod
Trial Name CD-002 TRUE NORTH
Phase III III
Target Enrollment 1,064 900
Design
Arm A: GED-301 160mg daily 12 weeks/GED-301 40mg daily 40 weeks
Arm B: GED-301 160mg daily 12 weeks/GED-301 40mg daily 4 weeks on/4 weeks off 40 weeks
Arm C: GED-301 160mg daily 12 weeks/GED-301 160mg daily 4 weeks on/4 weeks off 40 weeks
Arm A: Ozanimod 1mg (daily for induction and maintenance)
Arm B: Placebo (induction and maintenance)
Primary Endpoint Clinical remission defined by Crohn's Disease Activity Index (CDAI)
Clinical remission assessed by Mayo component sub-scores at week 10
Clinical remission assessed by Mayo component sub-scores at week 52
StatusEnrolling
Data in 2018EEnrolling
Data in 2018E
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I&I Late Stage Programs
Patient Population Relapsing Multiple Sclerosis Relapsing Multiple Sclerosis
Molecule Ozanimod Ozanimod
Trial Name SUNBEAM RADIANCE
Phase III II/III
Target Enrollment 1200 1200
DesignArm 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
StatusEnrollment complete
Data expected in H1:17EEnrollment complete
Data expected in H1:17E
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Reconciliation Tables
Reconciliation Tables
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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 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 these adjusted financial measures provide useful and meaningful information to us and investors because they enhance investors’ understanding of the continuing operating performance of our business and facilitate the comparison of 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, 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 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 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 divestitures from our adjusted financial results that 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 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 the estimated fair value measurement of contingent consideration. We also exclude transaction and certain other cash costs associated with business acquisitions and divestitures that are not normal recurring operating expenses, including severance costs which are not part of a formal restructuring program.
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Share-based Compensation Expense: We exclude share-based compensation from our adjusted financial results because share-based compensation expense, 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-based grants are issued.
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 are made 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 with respect to particular programs. The variability of amounts and lack of predictability of collaboration-related upfront expenses makes the identification of trends in our ongoing research and development activities more difficult. We believe the presentation of adjusted research and development, which does not include collaboration-related upfront expenses, provides useful and meaningful information about our ongoing research and development activities by enhancing investors’ understanding of our normal, recurring operating research and development expenses and facilitates comparisons between periods and with respect to projected performance. All expenses incurred subsequent to the initiation of the collaboration arrangement, such as research and development cost-sharing expenses/reimbursements and milestone payments up to the point of regulatory approval 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 not consider such costs to be normal, recurring operating expenses due to their nature, variability of amounts, and lack of predictability as to occurrence and/or timing. Research and development asset acquisition expenses includes expenses to acquire rights to pre-commercial compounds from a collaboration partner when there will be no further participation from the collaboration partner or other parties. The variability of amounts and lack of predictability of research and development asset acquisition expenses makes the identification of trends in our ongoing research and development activities more difficult. We believe the presentation of adjusted research and development, which does not include research and development asset acquisition expenses, provides useful and meaningful information about our ongoing research and development activities by enhancing investors’ understanding of 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 be closed, employee separation costs and costs to move operations from one location to another. We do not frequently undertake restructuring initiatives and therefore do not consider such costs to be normal, recurring operating expenses.
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Certain Other Items: We exclude certain other significant items that may occur occasionally and are not normal, recurring, cash operating expenses from our adjusted financial results. 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 result of 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 significant items excluded from adjusted financial results would be: expenses for 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 financial results. 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 of the 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 and are not normal, recurring operating expenses (or benefits), including adjustments related to acquisitions, divestitures, collaborations, certain adjustments to the amount of unrecognized tax benefits related to prior year tax positions, and other similar items.
Long-Term Targets
A reconciliation of long-term adjusted financial targets to the most comparable GAAP measures cannot be provided because we are unable to forecast with reasonable certainty many of the items necessary to calculate such comparable GAAP measures, including share-basedcompensation expense, collaboration-related upfront expense, research and development asset acquisition expense, acquisition-related expenses, fair value adjustments to contingent consideration, the ultimate outcome of legal proceedings and unusual gains and losses, as well as unforeseen events, risks and developments. These items are uncertain, depend on various factors, and could be material to our results computed in accordance with GAAP. We believe the inherent uncertainties in reconciling our long-term non-GAAP measures to the most comparable GAAP measures would make the forecasted comparable GAAP measures nearly impossible to predict with reasonable certainty and therefore inherently unreliable.
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 the three- and nine-month periods ended September 30, 2016 and 2015, and for the projected amounts for the year ending December 31, 2016.
Reconciliation Tables
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Reconciliation Tables
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Reconciliation Tables
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Explanation of adjustments:(1) Exclude share-based compensation expense totaling $147.7 for the three-month period ended September 30, 2016 and $149.9 for the three-month
period ended September 30, 2015. Exclude share-based compensation expense totaling $451.7 for the nine-month period ended September 30, 2016 and $426.4 for the nine-month period ended September 30, 2015.
(2) Exclude upfront payment expense for research and development collaboration arrangements.(3) Exclude research and development asset acquisition expenses for EngMab AG.(4) Exclude loss contingency accrual expense related to a contractual dispute.(5) Exclude amortization of intangible assets acquired in the acquisitions of Pharmion Corp., Gloucester Pharmaceuticals, Inc. (Gloucester), Abraxis
BioScience Inc. (Abraxis), Celgene Avilomics Research, Inc. (Avila), and Quanticel Pharmaceuticals, Inc. (Quanticel). The excluded amortization expense for the nine-month period ended September 30, 2016 includes $83.1 million related to the impairment of an intangible asset acquired in the Avila acquisition.
(6) Exclude changes in the fair value of contingent consideration related to the acquisitions of Gloucester, Abraxis, Avila, Nogra Pharma Limited and Quanticel.
(7) Exclude equity compensation and other fees and costs related to the acquisition of Receptos, Inc.(8) Exclude restructuring charges related to our relocation of certain operations into our two Summit, NJ locations as well as costs associated
with certain headcount reductions.(9) Exclude the estimated tax impact from the above adjustments.(10) Exclude other non-operating tax expense items. The adjustment for the three- and nine-month periods ended September 30, 2015 related primarily to
the impact of accelerating the full year tax expense on a gain on the sale of an equity investment into the second quarter of 2015, which was the period in which the gain occurred, and the impact of a one-time tax expense incurred as a result of our global mix of funding sources for certain upfront collaboration payments.
(11) Adjusted diluted net income per share for the three-month period ended September 30, 2015 was determined using diluted weighted average shares of 823.6.
Reconciliation Tables
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