KeepHealthCare.ORG – Celgene’s (CELG) Management Presents at Bank of America Merrill Lynch Healthcare Conference (Transcript)
Celgene Corporation (NASDAQ:CELG) Bank of America Merrill Lynch Healthcare Conference Call May 16, 2018 1:00 PM ET
Peter Kellogg – Chief Financial Officer
Ying Huang – Bank of America Merrill Lynch
I guess we should get started. My name is Ying Huang, and I’m the Senior Analyst covering at U.S. Biotech here at BofA Merrill Lynch. Our next presenting company is Celgene. We’re very pleased to have Peter Kellogg, CFO; and then Jon Biller from Tax and Treasurer; and also, Patrick Flanigan from Investor Relations. So, with that, let me welcome Peter, who will have some prepared remarks, and then we’ll go into fireside chat. Thank you, Peter.
Thank you, Ying, and good morning, everybody. It’s good to see a lot of familiar faces here. I’d like to start obviously with the standard slide, which is that we obviously be making some forward-looking statements, and that we have guidance and so forth outstanding, and that’s all done under the framework of safe harbor, and we do encourage everybody to read all of our SEC filings.
The vision for Celgene and the mission hasn’t changed. We remain dedicated to making a real difference in healthcare and while we’ve talked about building a preeminent global biopharmaceutical company for a long time, it has always been on the focus of really innovative therapies and make a huge difference. And that always builds towards a great value proposition in the marketplace, and in fact we’re very proud of the value that has been presented by all of our drugs from REVLIMID to POM to ABRAXANE to OTEZLA and others that are in our late stage pipeline. They really have made a huge difference for patients and of course in the world of healthcare that is evolving as you – is currently going on, I think it’s actually great to be in the position where your drugs represent such enormous value for multiple myeloma patients, for psoriasis patients and so forth, so, and pancreatic cancer patients.
So, I think that will continue to be our focus. We will be always focused on the leading-edge products and we will talk more about that later. Our portfolio obviously is one that is focused first of all on the commercial assets that we have in a lot of our late stage assets really executing against those. I’ll talk in a minute about our first quarter results, which were, I think quite good. We were very pleased with them. We are heading off to, what appear to be a very good 2018 based on those results. But the same time, we are focused on accelerating our pipeline, continue to add to that pipeline to make a really big difference after 2020, and then beyond that we’re always looking for opportunities to push science forward in areas where we have really good capabilities and that would be to expand our portfolio and you’ve seen us do a number of transactions where we are opening up our arsenal, if you will in terms of the acquisition of Juno, we’re picking up impact. We did the Beijing deal end of last summer.
So, really, we’ve been executing, accelerating, and expanding for some time. We think that’s a great formula. As you know in the last six or seven months you have had one item or one program pipeline that failed, which was a disappointment, but we have many, many programs that I will show you in a minute in the pipeline, and we’re going to keep pushing forward. We also have updated, I think all investors on the status for Ozanimod, which I think we’ve actually met with the FDA and the European authorities and had a dialogue with them. And so, we have a defined path forward and be ready to go for those.
Now on execute, just first of all for 2018, we think we’re headed towards a very good year. You saw our announcement of our earnings in the first quarter, which I think was really quite outstanding in terms of top line and a bottom line performance and all the products performed well. That allowed us to update our revenue guidance for the full-year up to $14.8 billion, which was the high end of our previous guidance range. So, we really pushed it right up to the top. REVLIMID got pushed up a bit as did POMALYST.
OTEZLA we held at the same rough guidance area as it was before, 1.5 billion as we did ABRAXANE. We’ve incorporated the new tax rate based on U.S. tax reform. Jonathan is here with me, and we can talk about that. So, we think we are pretty well settled in there. And we updated the diluted EPS number to actually above the prior guidance range after you adjust for the Juno acquisition, which was a $0.50 dilution in 2018. So, net-net we are off to a great start this year. We in a sense had a nice beaten race already in Q1, and we have got great momentum going forward.
Obviously, our pipeline now really is focused on a number of areas where there is some very nice unmet needs. Multiple myeloma, we’ll talk more about that, but REV and POM have over time become the backbone therapies there. Their performance continues to be outstanding both in terms of share performance outside the U.S. and duration performance, as well as in the U.S. we’ve picked up a lot of duration just as we would have expected with newly diagnosed and triplets, both for REV and for POM those have really been adding to the momentum of those products.
Another area for us is the non-Hodgkin’s lymphoma area. That’s an area we’ve been working on for a while. We’ve got some really interesting assets there with the Juno acquisition now we have worldwide rights for the JCAR17 CAR T program, which I think is really a hot topic today, and there is going to be some competition that we think the JCAR17 really is well positioned to have a differentiated profile, and we’ll see how that comes through with the final Phase 2 results, but we think the safety profile of that drug could really present some nice advantages in the marketplace.
In the myeloid disease area, I think probably the topic we want to talk about a little bit today is fedratinib. That was we picked that up into our pipeline. It’s a late stage asset. That was announced in early January. It was the acquisition of the impact biosciences, and right now we are in dialogue with the FDA and preparing for a filing later this year. Really interesting asset, going into the market where there is really some significant unmet need. So, a really great opportunity to bring value to patients once again.
In the psoriasis and psoriatic arthritis area, you saw the results for OTEZLA in the first quarter, as well as in the fourth quarter last year. The market has returned to being very healthy, OTEZLA did really well. We had a tremendous result in the first quarter based on both very strong performance in the U.S., but also very nice expansion outside the U.S. As you know, we’ve launched number of markets, including France and Japan, and I think on the earnings call and on the slides that are up on our website Terry showed a number of really interesting slide relative to the market share and the uptick. So, OTEZLA is off to a good start to the year. And of course, during this year, we’re not currently working in Phase 3 for scalp psoriasis, which would be an expansion, and then later on, we will see OTEZLA showing up perhaps in also sort of [indiscernible] where we have got development work going on.
Multiple sclerosis, we have a very valuable asset and very important asset with Ozanimod. That’s obviously been talked about a lot and we are in very good dialogue with both the U.S. and the European agencies on how to go forward and we anticipate as we announced on the Q1 call, refiling in the U.S. and then making the initial filing in Europe in the first quarter of 2019. So, we think we are in great track and we’re in very rich and strong dialogue with both the agencies on all the data that’s needed and how that’s going to come forward. And then finally, in the IBD space, we have a number of different assets, ozanimod in ulcerative colitis, OTEZLA in ulcerative colitis, ozanimod in Crohn’s disease, all those could be very interesting assets in the area again with high unmet need.
There’s lot of parts being developed, but I think the safety profile of these products, in fact they’re oral, is going to be a real feature. Quite frankly, you could see these drugs evolving where very similar to OTEZLA and psoriasis they may be positioned ahead of the biologics from a safety standpoint to convenient standpoint, ease of use et cetera et cetera. So, I think you will see, kind of, some nice differentiation between OTEZLA and Ozanimod over time and ulcerative colitis of nice opportunity for us to develop that market. Very much as we’ve done in psoriasis with OTEZLA. So more to come in that in the coming years.
We probably won’t talk too much about that until we actually have the final Phase 3 data for both those assets, but as we do we will definitely have an opportunity for us. This chart, I think is interesting because very often because people are focused on a lot of our late stage assets and we have quite a few as I just showed, people don’t often necessarily look earlier in the pipeline and spend a lot of time talking about what else is coming and this is an interesting chart of some of the innovative assets that have come into the pipeline in the last year or two. And at the top of the chart, you can see a new CELMoD for multiple myeloma.
We refer to it as 480, because it is too much to keep saying CC-92480, so we talked about that as 480. To the right of that, the 269 asset is a bispecific targeting BCMA as well. That has now been dozed and it is in early stages, but really high potential asset and you can see a number of other assets down below here including bb21217 which is the next generation asset behind bb21217 that we have partnered with Bluebird. And on the right, we’ve added to this pipeline over the last 6 months to 7 months with the Juno acquisition, with the JCAR19, CD19 CAR T, fedratinib as I mentioned before, and then the PD1 that we partner now with Beijing.
So, a lot coming in our pipeline, really exciting times. When you add it all up, we think actually sometimes people tend to obsess on any one product in our pipeline, but in fact it is quite a portfolio. And this chart, we think is always worth reminding people that while we have great business momentum through 2020 with top line and 14.5% CAGR and adjusted EPS and approximately 19% range, which I think is really industry-leading. Particularly, for a company our size. We’re also well positioned to grow beyond 2020, of course our core commercial assets don’t go away that rapidly, but secondly these assets are coming through really beautifully, and I think while we have had a couple of stumbles in the last six months, we’re getting back towards really focusing and execution and delivering against these assets, they are high potential, and they are all creating very nice value in the marketplace.
So, a lot to talk about over the next year or two as we see this pipeline come through, and obviously we haven’t stopped. As you saw in the first quarter, we announced the acquisition of two major acquisitions, I think about $11 billion, likewise because of the disruption in the market and the value position we are in today, we’ve actually been very active on share repurchases at the same time. So, a busy beginning of the year. Certainly, a lot going on at Celgene, building an exciting future for ourselves and I think that will probably lead to a lot of interesting questions.
So, Ying, I’ll conclude my remarks and welcome all your questions. Thanks.
Q – Ying Huang
Thank you very much Peter. [Operator Instructions] I want to kick off actually by asking about the drop pricing. Two days ago, when Secretary Azar of Health and Human Service delivered speech on drop pricing, he didn’t name you guys, but he did call out a certain drug that had some pricing increases over the last year and about the highly surprise as well, and we saw some volatility in your stock yesterday. So, just wondering maybe Peter can you provide some explanation, and also what your counterpoint is for that?
Of course. And I think you’re going to see a lot of commentary as we go forward, as people try to tackle the whole healthcare drug pricing world. And obviously, this has been the result of a lot of dialogue over the past months with the administration, with all the biopharma group and all of the different healthcare groups, I’m sure. And there will be examples used here and there for different topics, but I think what was most important and what we are really appreciating is that in the main underpinning of what President Trump was talking about was making sure that we get back to really focusing on the real value of the drugs deliver, and then creating a marketplace, a marketplace effect.
Not the government-controlled kind of environmental pricing, but rather a real marketplace for their supply and demand and there is a respect for what’s valuable in the market and perhaps things that are less valuable won’t be recognized as well. I think in the case of the illusion, as you said of some drugs that are very successful, I’m assuming perhaps he was talking about REVLIMID and POMALYST, but clearly those two drugs have tremendous value propositions and the pricing that we have taken on them over a cumulative time period really have reflected the improvements in both the label, as well as the use of the drug and demonstrated continued benefit to patients. So, if you back in time, you have seen is demonstrate great performance with REVLIMID with Velcade in the frontline and other triplets, you have seen the same coming through right now for POMALYST and triplet settings.
We’ve gotten our label expansions for newly diagnosed. We’ve demonstrated great performance on post-transplant patients, all of which has improved the benefit from multiple myeloma patients over the last year or two decades quite frankly. If you go back to 2020, and then compare the life expectancy of patients in multiple sclerosis from 2020 to today it is a huge dramatic change in both the quality of life, as well as the life expectancy of these patients. It’s not measured in a month or two, it’s measured in really doubling and tripling life expectancy. So, I think that from a value perspective that’s where I think all the dialogues are going to ultimately rest. There will be sound bites and comments made here and there as people observe difficult little things, but I think ultimately what’s going to be important is our people making a real difference in the lives of patients and are there really creating value for the health care system, and is it actually reducing perhaps other costs or extending life and making a big difference in the patient’s lives. And I think that on that basis, we’re very comfortable with the pricing and positioning of REVLIMID and POM, as well as ABRAXANE and OTEZLA and obviously each one of those is a different situation, but I think, we look forward to having that discussion on a value basis as does, I think most of the industry.
And we’re expecting two Phase 3 readouts from augment trial and also robust trial in the rest of the year. So, the question here is, how much of your 2020 guidance for the total revenue still depends on success of those two trials for REVLIMID?
So, I mean actually, I will come back to 2020 guidance first, but those are two more examples of us continuing to develop the usefulness and demonstrate performance of REVLIMID. We are expecting the augment report out sometime this year, perhaps this summer, it is an event driven timeline, so it’s really hard to really click exactly when that will happen. That’s a really interesting opportunity for relapsed follicular lymphoma patients using RITUXAN and REVLIMID as R-squared, we call it the two R’s versus just RITUXAN. And we think that could be a really nice opportunity, particularly given if that then carries forward to other usage, you know people having the opportunity to improve the outcomes and the outlook for patients who are relapsing follicular lymphoma would be tremendous benefit.
How we prepared our guidance for 2020 and then, because you know we did update it last fall. We have a whole basket of other hematology oncology assets that come together. So, this is one of them, but we also have bb2121. We now have JCAR17 et cetera, et cetera and so actually it’s a basket of different products that will all contribute to the so-called other Hem/Onc area. And I believe that’s in the $700 million neighborhood kind of at the low-end of our guidance range. So that’s something I think we feel very good about these multiple assets coming through. I think, the other assets that I mentioned, I haven’t included all, there’s luspatercept as well. There is quite a list. We’re going to see data coming over the next year on a lot of these assets. You’ve already seen very good data for 2121 for JCAR17 and so forth. So, I think there is a pretty strong portfolio of assets coming through, kicking in around 2020 and ramping up after that is our expectation.
Sure. Since you touched upon bb2121, Peter, maybe we can ask a couple on that subject. First one is, investors are wondering how are you going to sort of like separate these two programs? You have bb2121 partnered with Bluebird bio, you also have internal program from Juno, the question here is, are you going to develop both programs in parallel and put all the support behind both?
Absolutely. I think first of all, 2121 is well ahead of any other asset in this space and it has already posted enormously successful data. We will see more at ASCO and we’ll see more as we come through the rest of this year. And so, we are fully dedicated to maximizing the value of bb2121. First one to market with the best data, you know if you look at the data so far, I’m knocking on wood here, it’s hard to improve on that data. I mean it’s really spectacular, so partnered with Bluebird we have an organization, a team that is fire walled off at the right areas. It’s something we’ve been very clear on. So, we have individuals who are dedicated to bb2121 program, as well as coming behind that for 2121-7 program, which you will be hearing more about as time passes.
So that will be driving that to maximize the value. All the other assets we have that might be coming into multiple myeloma or might be targeting the BCMA assets, so that could be as you say the JCAR 125, but it could also be our bispecific, which we acquired from EngMab, as well as some of the ADCs that we’re developing, it’s a whole portfolio of kind of what comes next, and it does come later. And in really, the value of those assets and how much they are going to drive, we will really depend on how much unmet need is remaining. I mean how much of the whole is left. The 2121 is well ahead and we’re going to be pushing that to maximize the value and be the winner in multiple myeloma. At Celgene, we want to be the winner. We want to have the asset that wins, and whichever asset that is, we will be happy with it.
So, on JCAR125 we noticed that you’re planning to enroll very large patient number, which is about 120 in this case, is this meant to be a potentially pivotal trial that you can file based on the data for JCAR125 here?
I don’t think that’s the intention to file on this, I mean we will have to see how it evolves over time, but we are still very early Ying. I’m trying to remember if we’ve actually dosed a patient in the study, it’s probably two years to three years behind 2121, we just need to see how it evolves.
Okay. And then on JCAR17, we have already seen two front-runners, which have gotten FDA approval already. JCAR17 will be pretty closing out very soon. We are going to see the pivotal data second half of this year. So, as I guess the third entry into the market, where do you see your competitive position is, because you have to compete with two very large competitors, including Gilead and Novartis for JCAR17?
No, we welcome that. I think first of all, the theme of JCAR17 has always been to have a differentiated profile with a very nice safety profile, a very ease of maintaining the patient and perhaps even not having the same monitoring or in hospital stay requirements. I’m getting a little ahead of ourselves because we don’t have all the Phase 3 data. But the early signals are that it has a really strong efficacy profile and perhaps an advantaged safety profile, we will have to confirm that with final phase results. And if that is true, then I think that will be a tremendous advantage because throughout the country you are, and I think in Europe as well you’re hearing that while these CAR T assets are delivering tremendous efficacy and great results it is a burden to actually manage the flow of the patients through the hospitals and if you have to hospitalize and keep them on an observation for a period of time, that really does in the sense set a cap on just how many patients can go through any one clinic.
If you could actually have them in more of an observation basis, kind of out on a hotel nearby or whatever, and actually have more of an outpatient relationship that would actually facilitate ramping up and using JCAR17 quite differently than the other two assets. So, I think it is a little too early to conclude on that, but we would anticipate hoping to have JCAR17 present itself to the market in a differentiated manner and hopefully an advantaged manner that we can take advantage of in the marketplace. Still again, you got to get the data first and they we will position it and they will ramp it up. We’re very optimistic about that.
I want to ask also about ozanimod filing [ph] here, I know you guys have spent a lot of time, what I’m talking about is to the investors, but before you refile in let’s say first quarter of 2019, would you give us any update, again during [indiscernible] and also are the regulators in Europe and U.S. FDA and EMA in this case are they pretty much on the same page about what they need to see for a filing?
Yes, so as we talked about in the first quarter earnings call and Jay Backstrom gave a very nice update, but just to summarize it, we did have a very rich and full type A meeting with the FDA where we went through the entire development plan that fully aligned on what’s needed, how the approach will be done, and so we’re proceeding on that. We did in correspondence in communication with the European authorities on a similar basis. They are aligned as well on the development plan that we have.
So, I would say, to answer your question generally, yes. The two bodies are more or less aligned on that and the timeline, I think is pretty certain in terms of ending up having a pre-NDA meeting sometime in the second half of the year, and then filing in the first quarter that would be kind of with our respect. I don’t know that there will be any data or anything else that we will be resending anywhere on that because it is really kind of the mechanical steps of getting back to the filing. So, I think probably will be a little bit of dirt of information expect that when we file and so forth we will let people know, but I think we are quite optimistic.
Interesting little twist in this situation, understand we don’t like to have refused files, I think we’ve talked about something we don’t intend to ever repeat again that’s certainly our goal, but in net-net what it has ended up with is probably a one-year delay in the filing and we will get moving forward. The other thing I would just highlight is, in all of this, the efficacy data based on thousands of MS patients have been dosed and as well as the safety data there is – come from those Phase 3 the trials is really clear. And so, I don’t know if there was any discussion about that. And that does present the market opportunity, but I think everyone is interested in seeing, get to market. So, I just think we have to do some characterization work and that’s what’s involved with over the next year.
So, potentially that could be a generic entry for GILENYA, the other S1P1 modulator on the market today, with that kind of a timeline for Ozanimod, do you think you have little bit different thought on how do you want to position Ozanimod in phase of the potential genetic?
I don’t think so. I think knowing MS market pretty well, I think that, we always knew there will be a generic GILENYA, there is not a generic Ozanimod by the way, it is just that there is quite a difference in the two drugs. Ozanimod profile is much more specific to S1P1 and S1P5. So – and I think the safety and efficacy is really of great interest to the market. We would have launched earlier perhaps and then with GILENYA a generic would have come in shortly thereafter.
As you know MS, I mean the market doesn’t turn over right away. I mean it’s a switching process, you have newly diagnosed, you have patients who are on drug, they over time may relapse and may choose to change therapies. So, things don’t happen in six months, you kind of, a ramp up slowly and position yourself. Our goal would be to have a very preferred position in the oral space and hopefully be a drug that’s considered for the frontline, but also certainly for the first switch off the frontline assets.
Safety is extremely important in Multiple Sclerosis. That’s why the ABCRs are still dominant in the frontline and aspirations work through that and then eventually go to a stronger therapy we want to make sure Ozanimod is really well-positioned for that. With also again a very safe profile. So, I don’t think it will change things that much. There will be some nuanced differences certainly in the U.S., but I think we have to take one step at a time, we’re going to get the drug filed, get the final process going and then we will give more details on how we might launch it at that time.
So, perhaps maybe a tough question for you, but I have to ask on behalf of the investors, stock has been not performing that will recently and what do you think the investment community is missing? If you do think the stock is still undervalued at this level, and what can be learned from some of your recent setbacks? Are you trying to do something to gain credibility back from investors?
Absolutely. I think the news that’s happened with Celgene over the last 6, 7 months has caused the change in the value and the momentum of the stock has been the GED-301 failure, and then they refuse to file on ozanimod. In between there we’ve had spectacular data on bb2121, we have got really interesting data hopefully coming on to those patents up this year. We have got other assets coming through. We have done some very nice acquisitions, but I think what’s catching everybody’s attention is, hey on ozanimod we still don’t have that thing filed and we would have liked to seen it filed, and so there is a bit of a show me. Show me that you are actually back on the execution mode that you can really do it.
So, when you have an issue like that, you can’t hand wave, you can’t do other deals, you can’t buy your share back, it doesn’t change anything until you get that drug filed again and you get the momentum back in your pipeline. I think, as my presentation show, we have a lot of other assets in the pipeline. I think our valuation today kind of reflects almost no value, I mean I will leave it to you to run that math, but I think it reflects almost no value for our entire pipeline. So, we see it as I would say a very strong reaction in the market, I do think it’s part of what’s been happening in large cap biotech as well more broadly, but we probably have been more extreme. I mean our goal is to make sure that we continue to execute commercially that we continue to get the pipeline momentum back. And then in addition to that, given the value, we actually have been pretty active in repurchasing the shares ourselves both in the fourth quarter and the first quarter.
We have a question on the first row.
[Indiscernible] of Bank of America. To follow-up to Ying’s question, are you getting pressure from either the board or shareholders to do something to react in the near-term like do a large M&A or support the staff in anyway?
Well we just did do over $10 billion in M&A in the first quarter. So, I think, nobody is asking us to do that much more M&A, we have been pretty active let’s say in the last six months or seven months. We don’t do that in reaction to anything other than seeing good signs and good business development opportunities, and then we pursue, so really, we don’t react to stock price in terms of how we do business development or pipeline development. And so, I think no, we have to get back to and really execute. And I think that’s really the focus we are, you have heard us talk about on all the conference calls we’ve had, as well as the first quarter earnings call.
I think our performance in the first quarter, it has got to be one of the strongest first quarter results we’ve ever had as a company. All four assets performed really well. They really have kind of positioned themselves well for great momentum into this year. It was a beat and a raise in our guidance. I think we are off to raises on that. So, I think really the main focus of the company is to really deliver at this point, and make sure we are doing great job with all the high value assets we have in the pipeline. I think anything else we do is going to be seen as maybe hand waving. I think people want to see ozanimod filed, they want to see great data on luspatercept, and they want to see the continued business momentum that we have been delivering.
Second row here.
Yes, given the, obviously extreme undervaluation of your pipeline, are you concerned or worried about some larger firm or some sort of mega M&A deal coming after Celgene?
You know, it’s the kind of the question that I think has been asked at Celgene before I even got here, I just have been four years. I think it is a question that comes up every year. So, it is all relative to where your stock is, no matter what stock right people always say, it seems like you could be valued more and someone would come after you. So, I don’t think we have to sit around and worry about that. We’re a pretty good size company. We’re here to maximize the value of the company, that’s where we’re focused on, everyone knows our [indiscernible] if they want to, but I really don’t – I think you are seeing an industry where pipeline delivery and continued success – revenue and the cash flow is so important, and we had a great profile and that’s why we even buy the shares. We actually see it as a tremendous opportunity for us. You know, we don’t regularly always buy the exact same amount of shares, we kind of, I’d say lay and wait to see the disruptions in the market. So, last year during the first three quarters we really hardly bought any shares back and then in the fourth quarter and the first quarter we have picked up a reasonable amount, and so I think we try to be opportunistic and react to that and so we have been doing that. And it’s hard to speculate. We just keep running the business and trying to create value.
So, maybe just one last question here along the lines of M&A. Historically, you have been aggressive buyer either partner with smaller companies or buying companies such as receptors or June, but do you think we might see a wave of industry consolidation given Washington rhetoric, pricing pressure, the lack of maybe exciting pipeline assets among many of the large cap companies pipeline?
So, I can only speak for how we view it, and I think it is pretty shared view, which is that science and therapeutic benefit is really what drives value in this industry. And so, then you have a question of, are we built in too many companies, too many sales forces either synergy opportunities and so on. And those are the kind of thoughts that could perhaps support some industry consolidation, but I think it always as a first principle is, companies that have really interesting assets that have really great value propositions in the healthcare setting are the ones that everybody wants to have a piece of. And so, I think ultimately industry consolidation is not something we spend a lot of time thinking about. I probably don’t have the most informed opinion. We are not probably one of the players who will be engaged in that. All of our BD or M&A or partnering is always based on the science Any opportunity to create a lot of value.
It has made a lot of sense for us. I think it has worked well. Interestingly, on the first quarter I will just make an accounting note that we actually had adopted mark-to-market accounting standard, but I talked about that in my prepared remarks on the first quarter earnings call. And we were quite pleased. We actually had to book significant gains both at year-end 2017 as part of the adoption, although that one should retain earnings. But in the first quarter, we had over $900 million in gains on about $2 billion portfolio. So, the partners we’re working with have created a lot of value with us. Their stocks have really gone up tremendously and I think that has been a formula that’s worked. Well, and that’s probably the way we would like to work well. I don’t think, big industry consolidation or something is part of the Celgene strategy.
Great. Thank you so much.
Thank you, Peter, Jon and Patrick.
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