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Jefferies 2018 Global Healthcare Conference
June 6, 2018
CHANGING THE COURSE OFHUMAN HEALTH THROUGH BOLD
PURSUITS IN SCIENCE
CHANGING THE COURSE OFHUMAN HEALTH THROUGH BOLD
PURSUITS IN SCIENCE
Forward-Looking Statements and Adjusted Financial Information
This presentation contains forward-looking statements, which are generally statements that are not historical facts.Forward-looking statements can be identified by the words “expects,” “anticipates,” “believes,” “intends,” “estimates,”“plans,” “will,” “outlook,” “targets” and similar expressions. Forward-looking statements are based on management’scurrent plans, estimates, assumptions and projections, and speak only as of the date they are made. We undertakeno obligation to update any forward-looking statement in light of new information or future events, except as otherwiserequired by law. Forward-looking statements involve inherent risks and uncertainties, most of which are difficult topredict and are generally beyond our control. Actual results or outcomes may differ materially from those implied bythe forward-looking statements as a result of the impact of a number of factors, many of which are discussed in moredetail in our Annual Report 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 financial measures. Further information relevant to the interpretation of adjusted financial measures, and reconciliations of these adjusted financial measures 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.
Our 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
Deploying a Strategy to Grow Through 2020 and Beyond
ExecuteDeliveringon 2020
AcceleratePositioning toGrow Beyond
2020
ExpandCreating
SustainableGrowth
Strong Volume-Driven Growth Expected in 2018
14Y/Y Growth
%+%
EPS Y/Y growth*
~56%Operating Margin*
~$9.5B~ $14.8B
TotalRevenue
Tax Rate*
~17%
~ $8.45Diluted EPS*
~$2.0B
Total Revenue
~$1.5B ~$1.0B
*Adjusted financial measure which includes the impact of our acquisition of Juno Therapeutics Inc., which is expected to be dilutive to adjusted diluted EPS in 2018 by approximately $0.50.
~13.6%
MultipleMyeloma
Accelerating Diversification by Advancing Medicinesto Transform the Treatment of Diseases
Market Opportunity$27BIncidence60K
HEMATOLOGY & ONCOLOGYNon-Hodgkin Lymphoma
Market Opportunity$17BIncidence90K
MyeloidDiseases
Market Opportunity$5BIncidence65K
Psoriasis / Psoriatic Arthritis
Market Opportunity$26BPrevalence5M
MultipleSclerosis
Market Opportunity$23BPrevalence650K
INFLAMMATION & IMMUNOLOGYInflammatory Bowel Disease
Market Opportunity$21BPrevalence2.3M
Source: Market size projections are for 2022 from Evaluate Pharma, December 2017 and Decision Resources Disease Landscape and Forecast; Epidemiology is for 2018 from Decision Resources Disease Landscape and Forecast, Kantar Health CancerMPact database and Putnam Associates
bb2121:Tumor Response by Dose; Progression-Free SurvivalInterim Phase I Data
33.3
7.1 9.17.1
36.442.9
50.0
0102030405060708090
100
50 x 106 150 x 106 >150 x 106
Obj
ectiv
e R
espo
nse
Rat
e, %
sCR/CRVGPRPR
Data cutoff: March 29, 2018. CR, complete response; mDOR, median duration of response; ORR, objective response rate; PD, progressive disease; PR, partial response; sCR, stringent CR; VGPR, very good partial response. aPatients with ≥2 months of response data or PD/death within <2 months. ORR is defined as attaining sCR, CR, VGPR, or PR, including confirmed and unconfirmed responses. Low BCMA is <50% bone marrow plasma cells expression of BCMA; high BCMA is defined as ≥50%. bPFS in dose escalation cohort. Data cutoff: March 29, 2018. Median and 95% CI from Kaplan-Meier estimate. NE, not estimable. bb2121 is a partnered program with bluebird bio
Tumor Response By Dosea
ORR=33.3%mDOR=1.9 mo
ORR=57.1%mDOR=NE
150 × 106
(n=14) >150 × 106
(n=22) 50 × 106
(n=3)
ORR=95.5%mDOR=10.8 mo
Median follow-up (min, max), d
87(36, 638)
84(59, 94)
194(46, 556)
50 × 106
(n=3)150–800 × 106
(n=18)
Events 3 10
mPFS (95% CI), mo 2.7 (1.0–2.9)
11.8 (8.8–NE)
mPFS = 11.8 mo
mPFS = 2.7 mo
PFS at Inactive (50 × 106) and Active (150–800 × 106) Dose Levelsb
Liso-cel: Emerging Favorable Profile in R/R DLBCLInterim Phase I Data
High Response Rates in R/R DLBCL Early OS Encouraging in High-Risk DLBCL Patient Population (Median Follow-up 12 Months)
In CORE DLBCL Population, No Increase in CRS or NT at DL2
Data cut-off May 4, 2018, ASCO 2018. DLBCL FULL cohort inlcudes: DLBCL, NOS de novo and transformed from any indolent lymphoma, ECOG PS 0-2. DLBCL CORE cohort includes: DLBCL, NOS de novo and transformed from FL, ECOG PS 0-1, high-grade B-cell lymphoma. DL2 Chosen for Pivotal Cohort. CRS, cytokine release syndrome; NT, neurotoxicity; sCRS, serious CRS; sNT, serious NT.a Three patients treated on DL1D had similar outcomes. bGraded per Lee, et al. Blood, 2014.cGraded per Common Terminology Criteria for Adverse Events (CTCAE), version 4.03. Tables do not include FULL cohort (N=102)
Strengthening Leadership in Myeloid DiseasesStrengthening Leadership in Myeloid Diseases
IDHIFA®
Approved for R/R IDH2 mutant AML
1st Line AMLHigher-Risk MDSLower-Risk, RBC TD MDS 2nd Line AML
Luspatercept Ph III COMMANDS™
trial in front-line MDS Ph III MEDALIST™
trial in ESA refractory
REVLIMID®
Approved for del5q MDS
CC-486 Ph III QUAZAR®
trial in low-risk MDS
VIDAZA®
Approved for higher-risk MDS and elderly 1st-line AML
CC-486 PH III QUAZAR®
data in AML maintenance
Luspatercept
Erythroid maturation agent (EMA) targeting severe chronic anemias
Ph II myelofibrosis trial ongoing Ph III data expected in mid-18 Initiate Ph III trial in Q3:18Ph III data expected in mid-18
Building Leadership in a New Disease: Myelofibrosis (MF)
Myelofibrosis
Market Opportunity$4BIncidence17K
Fedratinib – A Potential Blockbuster in MF
Addressing Unmet Needs in MF
Highly selective JAK2 kinase inhibitor Myelofibrosis clinical program completed to date:
− Ph III trial in treatment-naïve patients − Ph II trial in patients resistant or intolerant to Jakafi®
NDA submission for myelofibrosis planned in 2018 Accelerate ongoing myelofibrosis program with luspatercept, in addition to
early Protein Homeostasis and Epigenetic programs
~60%
~20%
~20%
Currently Receiving Jakafi®First-line, Low Platelet CountJakafi® Failures
Building a Pipeline of Next-Generation Growth Drivers
Internal Innovation EngineAdvancing 8 New Programs into the Clinic
Next-Gen CELMoD®
Ph I for MM
BET inhibitor Ph I for solid
tumors
Mat2A inhibitor Ph I for solid
tumors
BCMA T cell engager
Ph I for MM
CC-92480
CC-90010 AG-270
CC-93269
BCMA CAR T Ph I for MM
CD3xCD33 bispecific
Ph I for AML
Anti-LIF1 MAb Ph I for solid tumors
GLP-1R modulator Targeted for NASH
bb21217
MSC-1 RPC8844
GEM333
Inflammation & Immunology Immuno-OncologyProtein Homeostasis Epigenetics
Announced BD Transactions
Liso-celCD19 CAR T
FedratinibJAK2 kinase inhibitor
BGB-A317 Anti-PD-1 mAb
Clinical data supports a potentially best-in-class profile providing an anchor therapy in NHL
Pivotal program in DLBCL under way
Broad clinical development plan to maximize clinical and commercial potential of liso-cel
Myelofibrosis clinical program completed to date: Ph III trial in treatment-naïve patients Ph II trial in patients resistant or intolerant to Jakafi®
NDA submission for myelofibrosis planned in 2018
Accelerate ongoing myelofibrosis program with luspatercept, in addition to early Protein Homeostasis and Epigenetic programs
Demonstrated anti-tumor activity in a range of solid tumors with an acceptable safety profile to support continued development
Pivotal program plan initiated in hepatocellular carcinoma (HCC), non-small cell lung cancer (NSCLC) and esophageal cancer
Exploring combinatorial potential with existing drug classes and emerging I/O agents
Delivering Industry-Leading Growth Through 2020…
Late-stage Pipeline with Potential to Add Over $16B in Incremental Peak Revenue Through 2030
…And Positioned to Grow Beyond 2020
Expected to Launch Ten Potential Blockbusters
Adj. Diluted EPS
Revenue
~19%CAGR
14.5%CAGR
Note: CAGR calculation is from 2017 measurements to the midpoint of the 2020 total revenue range$16 billion represents sum of individual potential peak sales for each illustrated product, which may not coincide.
$1B >$2BL E G E N D
Current Estimate of Peak Sales Potential:
Tislelizumab
Jefferies 2018 Global Healthcare Conference
June 6, 2018
CHANGING THE COURSE OFHUMAN HEALTH THROUGH BOLD
PURSUITS IN SCIENCE
CHANGING THE COURSE OFHUMAN HEALTH THROUGH BOLD
PURSUITS IN SCIENCE
Reconciliation Tables
CHANGING THE COURSE OFHUMAN HEALTH THROUGH BOLD
PURSUITS IN SCIENCE
CHANGING THE COURSE OFHUMAN HEALTH THROUGH BOLD
PURSUITS IN SCIENCE
Use of Non-GAAP Financial Measures
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 ofperformance 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 measuresprovide useful and meaningful information to us and investors because they enhance investors’ understanding of the continuing operating performance of our business andfacilitate the comparison of performance between past and future periods. These adjusted financial measures are non-GAAP measures and should be considered in addition to, butnot as a substitute for, the information prepared in accordance with U.S. GAAP. When preparing these supplemental non-GAAP financial measures we typically exclude certainGAAP 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. Othercompanies 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 adjustedfinancial 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/ortiming. 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 and success payments. We alsoexclude transaction and certain other cash costs associated with business acquisitions and divestitures that are not normal recurring operating expenses, including severance costswhich are not part of a formal restructuring program.
Use of Non-GAAP Financial Measures
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 aremade 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 withrespect to particular programs. The variability of amounts and lack of predictability of collaboration-related upfront expenses makes the identification of trends in our ongoingresearch 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 operatingresearch and development expenses 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 regulatory approval are considered tobe 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 benormal, recurring operating expenses due to their nature, variability of amounts, and lack of predictability as to occurrence and/or timing. Research and development assetacquisition expenses includes expenses to acquire rights to pre-commercial compounds from a collaboration partner when there will be no further participation from the collaborationpartner 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 ongoingresearch and development activities more difficult. We believe the presentation of adjusted research and development, which does not include research and development assetacquisition 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 beclosed, employee separation costs and costs to move operations from one location to another. We do not frequently undertake restructuring initiatives and therefore do not considersuch costs to be normal, recurring operating expenses.
Use of Non-GAAP Financial Measures
Certain Other Items: We exclude certain other significant items that may occur occasionally and are not normal, recurring, cash operating expenses from our adjustedfinancial 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 certainother significant items excluded from adjusted financial results would be: significant litigation-related loss contingency accruals and expenses to settle other disputed mattersand, effective for fiscal year 2018, changes in the fair value of our equity securities upon the adoption of ASU 2016-01 (Financial Instruments-Overall: Recognition andMeasurement of Financial Assets and Financial Liabilities).
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 netincome 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 taxlaw 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, recurringoperations (“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 taxbenefits related to prior year tax positions, the impact of tax reform legislation commonly referred to as the Tax Cuts and Jobs Act (2017 Tax Act), and other similar items. Wealso exclude excess tax benefits and tax deficiencies that arise upon vesting or exercise of share-based payments recognized as income tax benefits or expenses due to theirnature, variability of amounts, and lack of predictability as to occurrence and/or timing.
See the attached Reconciliation of GAAP to Adjusted Net Income for explanations of the amounts excluded and included to arrive at the adjusted measures for the projectedamounts for the twelve-month period ending December 31, 2018.
Reconciliation Tables
Upd
ated
w
ithou
t Dilu
tion
from
Jun
o
Upd
ated
with
D
ilutio
n fr
om
Juno
Proj
ecte
d ne
t inc
ome
- GA
AP
(1)
5,55
6$
4,76
7$
Bef
ore
tax
adju
stm
ents
:C
ost o
f goo
ds s
old
(exc
ludi
ng a
mor
tizat
ion
of a
cqui
red
inta
ngib
le a
sset
s):
Shar
e-ba
sed
com
pens
atio
n ex
pens
e 30
30
Res
earc
h an
d de
velo
pmen
t:Sh
are-
base
d co
mpe
nsat
ion
expe
nse
269
524
Col
labo
ratio
n-re
late
d up
fron
t exp
ense
257
257
Res
earc
h an
d de
velo
pmen
t ass
et a
cqui
sitio
n ex
pens
e1,
125
1,
125
A
djus
tmen
t to
clin
ical
tria
l and
dev
elop
men
t act
ivity
win
d-do
wn
char
ge(6
0)
(6
0)
Sellin
g, g
ener
al a
nd a
dmin
istra
tive:
Shar
e-ba
sed
com
pens
atio
n ex
pens
e 34
7
51
1
Am
ortiz
atio
n of
acq
uire
d in
tang
ible
ass
ets
257
319
Acq
uisit
ion
rela
ted
char
ges
and
rest
ruct
urin
g, n
et:
Cha
nge
in fa
ir va
lue
of c
ontin
gent
con
sider
atio
n an
d su
cces
s pa
ymen
ts(3
0)
(1
6)
A
cqui
sitio
n re
late
d ch
arge
s-
61
Oth
er in
com
e, n
et:
Cha
nges
in fa
ir va
lue
of e
quity
inve
stm
ents
(950
)
(950
)
Inco
me
tax
prov
ision
:Es
timat
ed ta
x im
pact
from
abo
ve a
djus
tmen
ts(3
3)
(1
77)
N
on-o
pera
ting
tax
adju
stm
ents
(11)
(11)
Proj
ecte
d ne
t inc
ome
- Adj
uste
d6,
757
$
6,
380
$
Proj
ecte
d ne
t inc
ome
per d
ilute
d co
mm
on s
hare
- G
AA
P~
7.36
$
~6.
31$
Proj
ecte
d ne
t inc
ome
per d
ilute
d co
mm
on s
hare
- A
djus
ted
~8.
95$
~
8.45
$
Proj
ecte
d w
eigh
ted
aver
age
dilu
ted
shar
es75
5.0
75
5.0
(1)
Our
pro
ject
ed 2
018
earn
ings
do
not i
nclu
de th
e ef
fect
of a
ny b
usin
ess
com
bina
tions
, col
labo
ratio
n ag
reem
ents
, ass
et
acqu
isitio
ns, a
sset
impa
irmen
ts, l
itiga
tion-
rela
ted
loss
con
tinge
ncy
accr
uals,
cha
nges
in th
e fa
ir va
lue
of o
ur C
VR
s iss
ued
as
part
of th
e ac
quisi
tion
of A
brax
is, c
hang
es in
the
fair
valu
e of
equ
ity in
vest
men
ts a
s pe
r ASU
201
6-01
(Fin
anci
al In
stru
men
ts-
Ove
rall:
Rec
ogni
tion
and
Mea
sure
men
t of F
inan
cial
Ass
ets
and
Fina
ncia
l Lia
bilit
ies)
or n
on-o
pera
ting
tax
adju
stm
ents
that
m
ay o
ccur
afte
r May
3, 2
018.
Cel
gene
Cor
pora
tion
and
Subs
idia
ries
Rec
onci
liatio
n of
Ful
l-Yea
r 20
18 P
roje
cted
GA
AP
to A
djus
ted
Net
Inco
me
(In m
illio
ns, e
xcep
t per
sha
re d
ata)
