Celgene swings to first-quarter loss, hurt by R&D costs

For the three months ended March 31, the company reported a loss of $1.64 billion, or $3.98 per share, compared with a profit of $57.4 million, or 14 cents per share, in the year-ago period.

Results include an in-process research and development write-off of $1.74 billion related to the acquisition of Pharmion Corp., which was completed in March.

On an adjusted basis, excluding stock-based compensation expense and acquisition-related charges, Celgene's profit more than doubled to $159.3 million, or 36 cents per share, from $69.1 million, or 16 cents per share, in the prior-year quarter.

Analysts polled by Thomson Financial, on average, estimated earnings of 34 cents per share on sales of $444.4 million. Analyst estimates typically exclude one-time, unusual items.

Total revenue rose 58 percent to $462.6 million from $293.4 million in the first quarter of 2007.

The increase in revenue was driven by sales of the company's cancer drug Revlimid, which nearly doubled to $286.8 million. Revlimid is sold in the U.S. and Europe as a treatment for multiple myeloma, a bone marrow cancer.

Total R&D expenses nearly doubled to $156.9 million. This includes some stock-based compensation expense and a $45 million upfront collaborative payment to Acceleron. Celgene said it increased R&D investments in a number of international clinical programs.

Shares rose 29 cents to $63.39 in morning trading.