Business Analysis of Celgene

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Celgene

Business Overview

Celgene Corporation discovers, develops, and commercializes therapies to treat cancer and inflammatory diseases worldwide. It offers REVLIMID, an oral immunomodulatory drug for multiple myeloma, myelodysplastic syndromes (MDS), and mantle cell lymphoma; POMALYST/IMNOVID to treat multiple myeloma; OTEZLA, a small-molecule inhibitor of phosphodiesterase 4 for psoriatic arthritis, psoriasis, and ankylosing spondylitis; and ABRAXANE, a solvent-free chemotherapy product to treat breast, non-small cell lung, pancreatic, and gastric cancers. The company's products also include VIDAZA, a pyrimidine nucleoside analog for intermediate-2 and high-risk MDS, chronic myelomonocytic leukemia, and acute myeloid leukemia (AML); THALOMID to treat patients with multiple myeloma and erythema nodosum leprosum; and RITALIN and FOCALIN XR products. Its clinical stage products comprise OTEZLA for use in treating various immune-inflammatory diseases; luspatercept for beta-thalassemia and MDS; CC-486 to treat MDS, AML, and solid tumors; AG-881 for glioma with IDH mutations; LSD1 inhibitor to treat non-hodgkin lymphoma and solid tumors; CC-122 and CC-220 to treat hematological and solid tumor cancers, and inflammation and immunology diseases; and durvalumab, an anti-PDL-1 antibody, for multiple hematological cancers. The company has a strategic collaboration with BeiGene, Ltd. It also has collaborative agreements with Acceleron Pharma, Inc.; Agios Pharmaceuticals, Inc.; Sutro Biopharma, Inc.; bluebird bio, Inc.; FORMA Therapeutics Holdings, LLC; OncoMed Pharmaceuticals, Inc.; NantBioScience, Inc.; AstraZeneca PLC; Lycera Corp.; Juno Therapeutics, Inc.; Nurix Inc.; Jounce Therapeutics, Inc.; and Dragonfly Therapeutics, Inc. Celgene Corporation was founded in 1980 and is headquartered in Summit, New Jersey.

Celgene

Celgene


R&P Rank: 258
Sector: Life Sciences
Industry:Biotechnology
H.Q Location:New Jersey
Website: www.celgene.com
Company Address:
86 MORRIS AVENUE, SUMMIT NJ 07901
Ph:908-673-9000

Business Analysis of Celgene

The Life Sciences Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Celgene compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Celgene to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Celgene with an interactive chart.

  1. Revenue Growth: Celgene reported a revenue growth of 21.3% year-on-year during 2016. Biotechnology Industry grew at 7.0% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Celgene spent 3.9% of its total revenues on COGS. Biotechnology industry average (COGS share of revenue) in the same period was 15.0%
  3. R&D share of Revenues: As a percentage of revenue, Celgene spent 39.8% of its total revenues on R&D. Biotechnology industry average R&D spending in the same period was 23.7%
  4. SG&A share of Revenues: As a percentage of revenue, Celgene spent 23.7% of its total revenues on Sales, Marketing, and General Administration (SG&A). Biotechnology industry average SG&A spending in the same period was 20.7%
  5. Inventory share of Revenues: As a percentage of revenue, Celgene spent 4.4% of its total revenues on Inventories. Biotechnology industry average Inventory spending in the same period was 7.5%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Celgene invested 2.2% of its total revenues on Accounts Payable (A/P) Biotechnology industry average Accounts Payable investment in the same period was 11.8%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Celgene invested 14.4% of its total revenues on Accounts Receivable (A/R). Biotechnology industry average Accounts Receivable investment in the same period was 16.6%
  8. PP&E share of Revenues: As a percentage of revenue, Celgene invested 8.3% of its total revenues on Property, Plants, and Equipments (PP&E). Biotechnology industry average PPE investment in the same period was 17.0%
  9. Intangibles share of Revenues: As a percentage of revenue, Celgene invested 135.9% of its total revenues on Intangibles. Biotechnology industry average Intangibles investment in the same period was 96.4%
  10. Net Margins: Celgene Net Margins in the year 2016 were 17.8%. Biotechnology industry average Net Margins in the same period were 26.6%

Sector and Industry Association of Celgene

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

Celgene is associated with Healthcare Sector Group, Life Sciences Sector, and Biotechnology Industry.

Life Sciences sector is comprised of the following industries: Pharmaceuticals; Medical Devices; Biotechnology; Diagnostics & Scientific Instruments. The definitions for each of the industries is as follows:

  • Pharmaceuticals industry includes companies that discover, develop, manufacture, and market medicines licensed for use as medications. In general these companies offer pharmaceutical products that can be described as prescription or over-the-counter medicines. Many Pharmaceutical companies also offer a diverse portfolio of animal health products, services and solutions. Many diversified pharmaceutical companies operate in more than two operating segments like consumer health products, medical devices and pharmaceutical.
  • Medical Devices industry includes manufacturers and distributors of medical equipments and medical supplies. Medical equipments include large scale capital equipmets such as X-Ray machines and MRI scanners and other nondisposable medical devices like stents and pacemakers. Medical supplies include makers of contact lenses, eyeglass lenses, bandages and other disposable products.
  • Biotechnology industry includes Biotechnology product companies, subscription companies, and service companies. Biotechnology product companies offer pharmaceutical drug products that are manufactured in, extracted from, or semi synthesized from biological sources. Subscription-based companies develop genome databases, which can be used to develop medicinal drugs. Service companies offer solutions based on a common technology or generic tool of other large pharmaceutical or biopharmaceutical companies.
  • Diagnostics & Scientific Instruments industry includes companies that provide testing products, diagnostic reagents, instruments and diagnostic services to aid in the detection and treatment of a wide range of diseases. It also includes molecular diagnostic and genetic testing companies that develop, manufacture, market and provide diagnostic tests, diagnostic systems and related products and services. Also included are companies that manufacture and market analytical instruments, equipment, reagents and consumables, software and services for research, manufacturing, analysis, discovery and diagnostics.

Industry Ranking of Celgene

With $11.2 billion revenues, Celgene ranked number 5 of all the companies in the US Biotechnology industry. There were a total of 45 public companies in the US Biotechnology industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Biotechnology industry by revenues during 2016 were:

  1. Gilead Sciences ($30.4 billion)
  2. Abbvie ($25.6 billion)
  3. Amgen ($23 billion)
  4. Biogen ($11.4 billion)
  5. Celgene ($11.2 billion)
  6. Regeneron ($4.9 billion)
  7. Alexion Pharmaceuticals ($3.1 billion)
  8. Vertex Pharmaceuticals ($1.7 billion)
  9. United Therapeutics ($1.6 billion)
  10. BioMarin Pharmaceutical ($1.1 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Celgeneand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of celgene

Abbvie (ABBV) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Abbvie Inc. with $26 billion revenues in the year 2016 was the number 2 Biotechnology company. Read this report to know the top competitors of Abbvie and identify growth and cost optimization opportunities of Abbvie

Amgen (AMGN) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Amgen Inc with $23 billion revenues in the year 2016 was the number 3 Biotechnology company. Read this report to know the top competitors of Amgen and identify growth and cost optimization opportunities of Amgen

Biogen (BIIB) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Biogen Inc. with $11 billion revenues in the year 2016 was the number 4 Biotechnology company. Read this report to know the top competitors of Biogen and identify growth and cost optimization opportunities of Biogen

Regeneron (REGN) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Regeneron Pharmaceuticals Inc with $5 billion revenues in the year 2016 was the number 6 Biotechnology company. Read this report to know the top competitors of Regeneron and identify growth and cost optimization opportunities of Regeneron

Alexion Pharmaceuticals (ALXN) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Alexion Pharmaceuticals Inc with $3 billion revenues in the year 2016 was the number 7 Biotechnology company. Read this report to know the top competitors of Alexion Pharmaceuticals and identify growth and cost optimization opportunities of Alexion Pharmaceuticals

Vertex Pharmaceuticals (VRTX) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Vertex Pharmaceuticals Inc with $2 billion revenues in the year 2016 was the number 8 Biotechnology company. Read this report to know the top competitors of Vertex Pharmaceuticals and identify growth and cost optimization opportunities of Vertex Pharmaceuticals

Revenues Analysis

Celgene (CELG) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Celgene Corp (CELG) from 2012 to 2016. Celgene generated a total of $11.2 billion revenues during 2016. Celgene reported a revenue growth of 21.3% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Celgene (CELG) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Celgene Corp (CELG) from 2002 to 2016. Celgene generated a total of $11.2 billion revenues during 2016. Celgene reported a revenue growth of 21.3% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Celgene (CELG) Revenue Growth Comparison With Industry Growth From 2012 To...

This report provides a comparison of Celgene Corp (CELG) revenue growth with Biotechnology industry growth during the last five years from 2012 to 2016. Celgene reported a revenue growth of 21.3% year-over-year during 2016. The Biotechnology industry growth was 7% year-over-year during 2016. Celgene growth was faster than the industry during 2016.

Profit Analysis