Celgene profits hit by higher R&D, acquisition costs

US biotech major Celgene (Nasdaq: CELG) reported financial results for the fourth-quarter and full-year 2013, with final quarter profits down as a result of higher R&D and product rights acquisition costs. The stock declined 2.6% to $154.31 by midday trading yesterday, as investors were underwhelmed by the firm’s onward guidance.

For the quarter, Celgene posted a 21% increase in revenue to $1.76 billion as product sales increased 22% to $1.725 billion from the year-ago period. Adjusted net income rose 13% to $649 million with adjusted earnings per share up14% to $1.51. Analysts polled by Thomson Reuters recently expected per-share earnings of $1.54 and revenue of $1.72 billion. Net income of $214.4 million or $0.50 per share, was down 19% from $263.1 million or $0.61 per share in the fourth quarter of 2012.

The company reported $227 million in upfront collaboration payments for R&D in the reporting quarter, compared to $59.5 million in the like 2012 period. Additionally, total costs and expenses grew 27% to $1.4 billion, while its R&D expenses leapt 54% to $731 million.