C HANGING THE C OURSE OF

H UMAN H EALTH T HROUGH B OLD

P URSUITS IN S CIENCE

35th Annual
JP Morgan Healthcare Conference
January 9, 2017

Our Mission and Vision

Celgene is building a preeminent global

biopharmaceutical company focused
on the discovery, development and
commercialization of innovative therapies for
patients with cancer, immune-inflammatory,
and other unmet medical needs

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 managements current plans, estimates, assumptions and projections, and
speak only as of the date they are made. We undertake no obligation to update any forward-looking statement in light of new information
or future events, except as otherwise required by law. Forward-looking statements involve inherent risks and uncertainties, most of which
are difficult to predict and are generally beyond our control. Actual results or outcomes may differ materially from those implied by the
forward-looking statements as a result of the impact of a number of factors, many of which are discussed in more detail 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.

2016 A Year with Significant Momentum

Delivered on
Key Commercial Drivers

Advanced
Phase III Trials

Progressed
Early-to-Mid Stage Assets

Expanded and Added

to Our R&D Engine

Acquisitions

Phase II

9
Collaborations

Phase I

18

Preclinical

42

Robust R&D Engine Delivering First- and Best-in-Class Programs

Robust R&D Engine

Advanced 8 New Programs

into the Clinic
CC-90009

Protein Homeostasis

Epigenetics
Centers
of Excellence

Immuno-Oncology

Next-Gen CELMoD
Ph I for AML
TIGIT

MAb targeting TIGIT

Ph I for solid tumors
LYC-55716

Inflammation & Immunology

Partner
Network

ROR-gamma agonist
Ph I for solid tumors
FT-4101
Lipid metabolism inhibitor

Target indication: NASH

CC-90011

LSD1 inhibitor
Ph I for solid tumors
JTX-2011

MAb targeting ICOS

Ph I for solid tumors
CC-90006

MAb PD1 agonist

Ph I for psoriasis
LYC-30937

ATPase modulator
Ph II for UC

Blockbuster Products with Unique Value Propositions

Market leader in multiple myeloma expanding share & duration
Non-transplant NDMM reimbursed in 19 countries; TE Maintenance filed in US & EU
Established clinical synergy in approved novel triplet combinations

A standard of care in 3rd-Line+ multiple myeloma

Approved in 58 countries; increasing market share and treatment duration
Emerging backbone therapy with novel triplet combinations under evaluation

Most successful launch in the psoriasis / psoriatic arthritis category

Global expansion advanced: reimbursed in 23 countries; Japan approved in December
Advancing robust life cycle management across multiple indications

Global market leading branded therapy for metastatic pancreatic cancer

Adjuvant pancreatic cancer trial enrollment complete; data expected in 2017
Advancing Phase III I/O combinations in NSCLC and triple negative breast cancer

Operating Excellence Is Driving High Growth & Financial Overperformance

Total Revenue

Adjusted Diluted EPS

($B)

($)

~$5.94

$11.2

20%
CAGR

25%

$9.3

CAGR

$7.7

$3.71

$6.5

$2.98

$5.5

2012

$4.71

$2.45

2013

2014

Guidance

2015

Actual

*2016 amounts are preliminary and unaudited

2016*

2012

2013

2014

Guidance

2015

Actual

2016*

2017 Guidance Reflects Strong Business Momentum

$7.10 - $7.25
EPS y/y growth*

21

Total
Revenue
$13.0-13.4B

Total
Revenue

Adjusted
EPS

Operating margin*

150 bps
improvement

~815M

Diluted shares
outstanding

$8.0-8.3B

18

y/y growth

$1.5-1.7B

~$1.6B

*Adjusted financial measure

Note: Calculation of YoY growth is from unaudited 2016 measurements to the mid-point of the range

~$1.0B

Delivering Industry-Leading, Volume-Driven Growth

Total Revenue

Adjusted Diluted EPS

($B)

($)

>$13.00

>$21

22%

17%

CAGR

CAGR

$11.2

2016*

~$5.94

2020E

2016*

*2016 amounts are preliminary and unaudited; 2020 targets at currency exchange rates on January 9, 2017

2020E

Entering a Pivotal Inflection Point with Multiple Value Drivers to

Sustain Growth from 2020-2030

19
2020
2017

$13-13.4B
revenue

>$21B
revenue

9
13

Advancing a High Quality Pipeline with Significant Potential

REVLIMID

ABRAXANE

CC-486

NDMM, RRMM

REVLIMID

RRMM

POMALYST

MCL

PanC, NSCLC

ISTODAX

Marizomib

Solid
Tumors

NHL

CC-486

13

NSCLC, mBC

Solid Tumors

OMP-305B83
Solid Tumors

PNK-007

RRMM

RRMM

CC-220
RRMM

REVLIMID

bb2121
Durvalumab

RRMM

CC-122

CC-122

NHL

Glioma

FT-4101

PSOR, PSA

AML

NASH

OTEZLA

VIDAZA

CC-90009

MDS, AML

CC-90006

Behet's, AS

PSOR

AML

LEGEND
Market

CC-90002
CC-90011 Solid Tumors

Solid Tumors

OTEZLA

PNK-007

Del 5q MDS

Solid Tumors

AG-881

NHL, CLL

REVLIMID

TIGIT

HCC

NHL, CLL

Durvalumab

NDMM, RRMM

Ph I

OMP-131R10

GBM

11

LYC-55716
Solid Tumors

Marizomib

JCAR017

Lymphoma
& Leukemia

PTCL, CTCL

RRMM

CC-122

JTX-2011

Solid Tumors

Demcizumab

RRMM

Multiple
Myeloma

NDMM, RRMM

NHL

ACY-241

RRMM

THALOMID

PanC, NSCLC,
mBC

CC-486

Myeloid
Disease

Enasidenib

IDH2 AML

CC-486

GED-0301
IBD

CC-90002
AML

Durvalumab

MDS, AML

MDS, AML

Luspatercept

MDS, Beta-thalassemia

Inflammation
& Immunology

12

Ozanimod
IBD, MS

ABX-1431
Neuro, Pain

LYC-30937
UC, PSOR

RPC-4046

CC-90001

EoE

IPF

OTEZLA
UC

CC-220
SLE

Celgene has an exclusive option to license Demcizumab, JTX-2011, LYC-55716, LYC-30937, OMP-131R10, OMP-305B83, and TIGIT

Expanding Our Leadership in Inflammation & Immunology

REVLIMID

ABRAXANE

CC-486

NDMM, RRMM

REVLIMID

RRMM

POMALYST

MCL

PanC, NSCLC

ISTODAX

Marizomib

Solid
Tumors

NHL

CC-486

13

NSCLC, mBC

Solid Tumors

OMP-305B83
Solid Tumors

PNK-007

RRMM

RRMM

CC-220
RRMM

REVLIMID

bb2121
Durvalumab

RRMM

CC-122

CC-122

NHL

Glioma

FT-4101

PSOR, PSA

AML

NASH

OTEZLA

VIDAZA

CC-90009

MDS, AML

CC-90006

Behet's, AS

PSOR

AML

LEGEND
Market

CC-90002
CC-90011 Solid Tumors

Solid Tumors

OTEZLA

PNK-007

Del 5q MDS

Solid Tumors

AG-881

NHL, CLL

REVLIMID

TIGIT

HCC

NHL, CLL

Durvalumab

NDMM, RRMM

Ph I

OMP-131R10

GBM

11

LYC-55716
Solid Tumors

Marizomib

JCAR017

Lymphoma
& Leukemia

PTCL, CTCL

RRMM

CC-122

JTX-2011

Solid Tumors

Demcizumab

RRMM

Multiple
Myeloma

NDMM, RRMM

NHL

ACY-241

RRMM

THALOMID

PanC, NSCLC,
mBC

CC-486

Myeloid
Disease

Enasidenib

IDH2 AML

CC-486

GED-0301
IBD

CC-90002
AML

Durvalumab

MDS, AML

MDS, AML

Luspatercept

MDS, Beta-thalassemia

Inflammation
& Immunology

12

Ozanimod
IBD, MS

ABX-1431
Neuro, Pain

LYC-30937
UC, PSOR

RPC-4046

CC-90001

EoE

IPF

OTEZLA
UC

CC-220
SLE

OTEZLA: A Blockbuster for Immune-Inflammatory Diseases

Unique Value Proposition

Growing Market Position

PDE4 Inhibition

Psoriasis Market Share

Event

Modulation of Target Inflammatory

Cytokines

40%

Extracellular Pathways

35%

HUMIRA

Target

Once daily formulation

IL-17

Scalp Psoriasis
ENBREL

Initiate Phase III Trial

15%

Ankylosing Spondylitis

10%

Phase II Data
COSENTYX

Target

0%

2017
2017

OTEZLA

5%

IL-12/23

Target

Initiate Phase III Trial

25%
20%

TNF-

Submit sNDA

Expected
Timing

STELARA

30%

Immune Cell

Robust Life Cycle Plan

Ulcerative Colitis

Phase III Data

Behets Disease

Source: Symphony Prescriber-level data through week ending 9 December 2016; SHS PTD claims data. Dec 16 feed for month ending Oct 16

2017
2017

2018

Coming Soon... Phase III Ozanimod Data in Multiple Sclerosis

Ozanimod

2-Year Phase II Data Supports Profile

Annualized Relapse Rate

Potentially best-in-class next-generation

S1P modulator

0.51

Phase III program for relapsing multiple

sclerosis fully enrolled SPA with FDA
Phase III data expected in H1:17
Planning NDA submission YE:17

0.22

0.18

Placebo (N=88)
Ozanimod 1 mg (N=83) PBO controlled period (24 weeks)
Ozanimod 1 mg (N=81) Blinded extension (2 years)

Safety:
Most commonly reported AEs were minor infections
and headache
No noteworthy treatment-related occurrences of
cardiac, pulmonary, serious opportunistic infections
or malignancy adverse events

Advancing a Portfolio of Oral, Complementary and Potentially

Disruptive Therapies for Inflammatory Bowel Diseases

Ozanimod

GED-0301

Mechanism of
Action:

Next-Gen S1P
Modulator

Oligonucleotide
Targeting Smad 7

PDE4
Inhibitor

Phase II Trial:

Crohns Disease

Ulcerative Colitis

Ulcerative Colitis

Data Expected in 2017

Data Expected in 2017

Data Expected in 2017

Phase III Trial:

Ulcerative Colitis

Crohns Disease

Data Expected in 2018

Data Expected in 2018

Ulcerative Colitis
Initiate in 2018

Preparing for Upcoming Cascade of Global Launches

Multiple Potential Blockbuster Products Expected in I&I
Significant growth
through 2020
and beyond
Ozanimod
GED-0301
Ozanimod
OTEZLA
PsA / Psor
2014

RMS
2018E

CD
2019E

UC
2019E

Defining New Standards of Care in Multiple Myeloma

REVLIMID

ABRAXANE

CC-486

NDMM, RRMM

REVLIMID

RRMM

POMALYST

MCL

PanC, NSCLC

ISTODAX

Marizomib

Solid
Tumors

NHL

CC-486

13

NSCLC, mBC

Solid Tumors

OMP-305B83
Solid Tumors

PNK-007

RRMM

RRMM

CC-220
RRMM

REVLIMID

bb2121
Durvalumab

RRMM

CC-122

CC-122

NHL

Glioma

FT-4101

PSOR, PSA

AML

NASH

OTEZLA

VIDAZA

CC-90009

MDS, AML

CC-90006

Behet's, AS

PSOR

AML

LEGEND
Market

CC-90002
CC-90011 Solid Tumors

Solid Tumors

OTEZLA

PNK-007

Del 5q MDS

Solid Tumors

AG-881

NHL, CLL

REVLIMID

TIGIT

HCC

NHL, CLL

Durvalumab

NDMM, RRMM

Ph I

OMP-131R10

GBM

11

LYC-55716
Solid Tumors

Marizomib

JCAR017

Lymphoma
& Leukemia

PTCL, CTCL

RRMM

CC-122

JTX-2011

Solid Tumors

Demcizumab

RRMM

Multiple
Myeloma

NDMM, RRMM

NHL

ACY-241

RRMM

THALOMID

PanC, NSCLC,
mBC

CC-486

Myeloid
Disease

Enasidenib

IDH2 AML

CC-486

GED-0301
IBD

CC-90002
AML

Durvalumab

MDS, AML

MDS, AML

Luspatercept

MDS, beta-thalassemia

Inflammation
& Immunology

12

Ozanimod
IBD, MS

ABX-1431
Neuro, Pain

LYC-30937
UC, PSOR

RPC-4046

CC-90001

EoE

IPF

OTEZLA
UC

CC-220
SLE

Comprehensive Strategy Targets Unmet Needs in Myeloma

Current & Potential
Standards of Care

1st Line

2nd Line

REVLIMID /

dex
REVLIMID Triplet

REVLIMID /

dex
REVLIMID Triplet

Patient Segments with High Unmet Need

SCT Received

High
risk

Non-SCT Received

High
risk

Standard
risk

Sub-optimal
response <12 mo

Standard
risk

4th

Line

POMALYST / dex
POMALYST Triplet
REVLIMID Triplet

Line+

POMALYST/ dex
POMALYST Triplet
REVLIMID Triplet

Next-Gen CELMoD Agents

CC-122

CC-220

Elderly frail

CC-95821

Prior response
>12 mo

Immuno-Oncology Agents

Frail (no triplets)

3rd

Celgene
Myeloma Pipeline

bb2121

EM901

Durvalumab
Next-Gen Epigenetic Agents

Switch class
doublets

Failed IMiD and PI

CC-486

ACY-241

Next-Gen Proteasome Inhibitors

Post-POMALYST,

Daratumumab, new MOAs

Curative Potential

High unmet need

Marizomib

Targeting BCMA: A Potentially Disruptive Approach to Myeloma Therapy

High value target that is uniformly

expressed on myeloma cells
Emerging CAR-T clinical data validates
potential in highly refractory disease

1. CAR-T Cell

T
Cells

CAR-T
Cells
Chimeric
TCR

Advancing a comprehensive campaign

with three distinct approaches:
1. bb2121: CAR-T in Ph I with
bluebird bio

2. Bispecific Antibody

Cytotoxic
granules

Cytotoxic
granules

BCMA

BCMA

2. EM901: bispecific antibody

expected to file IND by YE:2017
3. Antibody drug conjugates in preclinical
development with Sutro Biopharma

BCMA
TUMOR

3. Antibody
Drug Conjugate

Expanding Our Portfolio in Myeloid Diseases

REVLIMID

ABRAXANE

CC-486

NDMM, RRMM

REVLIMID

RRMM

POMALYST

MCL

PanC, NSCLC

ISTODAX

Marizomib

Solid
Tumors

NHL

CC-486

13

NSCLC, mBC

Solid Tumors

OMP-305B83
Solid Tumors

PNK-007

RRMM

RRMM

CC-220
RRMM

REVLIMID

bb2121
Durvalumab

RRMM

CC-122

CC-122

NHL

Glioma

FT-4101

PSOR, PSA

AML

NASH

OTEZLA

VIDAZA

CC-90009

MDS, AML

CC-90006

Behet's, AS

PSOR

AML

LEGEND
Market

CC-90002
CC-90011 Solid Tumors

Solid Tumors

OTEZLA

PNK-007

Del 5q MDS

Solid Tumors

AG-881

NHL, CLL

REVLIMID

TIGIT

HCC

NHL, CLL

Durvalumab

NDMM, RRMM

Ph I

OMP-131R10

GBM

11

LYC-55716
Solid Tumors

Marizomib

JCAR017

Lymphoma
& Leukemia

PTCL, CTCL

RRMM

CC-122

JTX-2011

Solid Tumors

Demcizumab

RRMM

Multiple
Myeloma

NDMM, RRMM

NHL

ACY-241

RRMM

THALOMID

PanC, NSCLC,
mBC

CC-486

Myeloid
Disease

Enasidenib

IDH2 AML

CC-486

GED-0301
IBD

CC-90002
AML

Durvalumab

MDS, AML

MDS, AML

Luspatercept

MDS, beta-thalassemia

Inflammation
& Immunology

12

Ozanimod
IBD, MS

ABX-1431
Neuro, Pain

LYC-30937
UC, PSOR

RPC-4046

CC-90001

EoE

IPF

OTEZLA
UC

CC-220
SLE

Transformative Therapies in Development for Myeloid Diseases

Enasidenib

Luspatercept

Potential first-in-class treatment for IDH2 mutant AML

Novel ligand trap for TGF- Superfamily

Submitted NDA for relapsed refractory IDH2 mutant AML

Ph III trials in RS+ MDS and

beta-thalassemia underway

Ph III IDHentify trial underway

Trials in broader MDS and beta-thalassemia

segments and myelofibrosis expected
to begin in 2017

CC-486

Durvalumab

Potentially best-in-class oral demethylating drug

Anti-PD-L1 monoclonal antibody

Ph III QUAZAR trials underway in MDS and AML

maintenance; AML data expected in 2018

Broad Ph I/II FUSION program underway:

Additional trials planned in MDS

and multiple myeloma

Ph III enabling data expected in 2017

MDS, AML, NHL, CLL and MM

Celgene Myeloid Pipeline Covers the Entire Disease Spectrum

AML

MDS
Higher-Risk

Lower-Risk, RBC TD
RS+, ESA Refractory or Ineligible

Del 5q

Front-Line
Fit Patients

Low Platelet

MDS Spectrum

Elderly
Maintenance
after IC

Elderly-1st
Line

AML 2nd
Relapse

AML Spectrum

Luspatercept
CC-486

Luspatercept

Durvalumab

HMA failures

-Thalassemia
Occasionally Transfused

Durvalumab

CC-90009

CC-486
Durvalumab

Myelofibrosis

Regularly Transfused

-Thalassemia Spectrum

Luspatercept

Myelofibrosis

Luspatercept
Luspatercept

Enasidenib

CC-486

Establishing a Lymphoma and Leukemia Franchise

REVLIMID

ABRAXANE

CC-486

NDMM, RRMM

REVLIMID

RRMM

POMALYST

MCL

PanC, NSCLC

ISTODAX

Marizomib

Solid
Tumors

NHL

CC-486

13

NSCLC, mBC

Solid Tumors

OMP-305B83
Solid Tumors

PNK-007

RRMM

RRMM

CC-220
RRMM

REVLIMID

bb2121
Durvalumab

RRMM

CC-122

CC-122

NHL

Glioma

FT-4101

PSOR, PSA

AML

NASH

OTEZLA

VIDAZA

CC-90009

MDS, AML

CC-90006

Behet's, AS

PSOR

AML

LEGEND
Market

CC-90002
CC-90011 Solid Tumors

Solid Tumors

OTEZLA

PNK-007

Del 5q MDS

Solid Tumors

AG-881

NHL, CLL

REVLIMID

TIGIT

HCC

NHL, CLL

Durvalumab

NDMM, RRMM

Ph I

OMP-131R10

GBM

11

LYC-55716
Solid Tumors

Marizomib

JCAR017

Lymphoma
& Leukemia

PTCL, CTCL

RRMM

CC-122

JTX-2011

Solid Tumors

Demcizumab

RRMM

Multiple
Myeloma

NDMM, RRMM

NHL

ACY-241

RRMM

THALOMID

PanC, NSCLC,
mBC

CC-486

Myeloid
Disease

Enasidenib

IDH2 AML

CC-486

GED-0301
IBD

CC-90002
AML

Durvalumab

MDS, AML

MDS, AML

Luspatercept

MDS, beta-thalassemia

Inflammation
& Immunology

12

Ozanimod
IBD, MS

ABX-1431
Neuro, Pain

LYC-30937
UC, PSOR

RPC-4046

CC-90001

EoE

IPF

OTEZLA
UC

CC-220
SLE

Advancing Novel Immunotherapies for NHL and CLL

CC-122
Ph I/II trials underway: NHL, CLL and MM

Comprehensive Phase III Program

Trial
1st Line Follicular

Pivotal program initiation expected in 2017

Expected Data
YE:17

JCAR017
Interim analysis shows high CR rates in Ph I NHL trial

Rel / Ref Follicular

YE:17

Generally manageable cytokine release syndrome

and neurotoxicity
Initiate pivotal program in 2017

1st Line ABC DLBCL

Rel / Ref Indolent

2018

2019

Durvalumab
Broad program with novel agents in NHL and CLL
Exploring potential synergy
in combination with CAR-T

Building a Solid Tumor Portfolio on the ABRAXANE Foundation

REVLIMID

ABRAXANE

CC-486

NDMM, RRMM

REVLIMID

RRMM

POMALYST

MCL

PanC, NSCLC

ISTODAX

Marizomib

Solid
Tumors

NHL

CC-486

13

NSCLC, mBC

Solid Tumors

OMP-305B83
Solid Tumors

PNK-007

RRMM

RRMM

CC-220
RRMM

REVLIMID

bb2121
Durvalumab

RRMM

CC-122

CC-122

NHL

Glioma

FT-4101

PSOR, PSA

AML

NASH

OTEZLA

VIDAZA

CC-90009

MDS, AML

CC-90006

Behet's, AS

PSOR

AML

LEGEND
Market

CC-90002
CC-90011 Solid Tumors

Solid Tumors

OTEZLA

PNK-007

Del 5q MDS

Solid Tumors

AG-881

NHL, CLL

REVLIMID

TIGIT

HCC

NHL, CLL

Durvalumab

NDMM, RRMM

Ph I

OMP-131R10

GBM

11

LYC-55716
Solid Tumors

Marizomib

JCAR017

Lymphoma
& Leukemia

PTCL, CTCL

RRMM

CC-122

JTX-2011

Solid Tumors

Demcizumab

RRMM

Multiple
Myeloma

NDMM, RRMM

NHL

ACY-241

RRMM

THALOMID

PanC, NSCLC,
mBC

CC-486

Myeloid
Disease

Enasidenib

IDH2 AML

CC-486

GED-0301
IBD

CC-90002
AML

Durvalumab

MDS, AML

MDS, AML

Luspatercept

MDS, beta-thalassemia

Inflammation
& Immunology

12

Ozanimod
IBD, MS

ABX-1431
Neuro, Pain

LYC-30937
UC, PSOR

RPC-4046

CC-90001

EoE

IPF

OTEZLA
UC

CC-220
SLE

Near-term Opportunities in Solid Tumors

Marizomib
Comprehensive Phase III Program
Trial
Adjuvant PanC

Expected Data
YE:17

Next-generation proteasome inhibitor that

uniquely crosses the blood-brain-barrier
Ph I/II combo data in GBM encouraging
Targeting pivotal program initiation in 2017

Elderly NSCLC

Squamous NSCLC

IMpower 131
NSCLC I/O Combo

IMpower 130
NSCLC I/O Combo

TNBC I/O Combo

2017
2018
2018

Demcizumab
Potentially first-in-class Anti-DLL4 MAb

2018

Ph II PanC combo trial with ABRAXANE

underway

2018

Data expected in H1:17

Advancing a High Quality Pipeline with Significant Potential

REVLIMID

ABRAXANE

CC-486

NDMM, RRMM

REVLIMID

RRMM

POMALYST

MCL

PanC, NSCLC

ISTODAX

Marizomib

Solid
Tumors

NHL

CC-486

13

NSCLC, mBC

Solid Tumors

OMP-305B83
Solid Tumors

PNK-007

RRMM

RRMM

CC-220
RRMM

REVLIMID

bb2121
Durvalumab

RRMM

CC-122

CC-122

NHL

Glioma

FT-4101

PSOR, PSA

AML

NASH

OTEZLA

VIDAZA

CC-90009

MDS, AML

CC-90006

Behet's, AS

PSOR

AML

LEGEND
Market

CC-90002
CC-90011 Solid Tumors

Solid Tumors

OTEZLA

PNK-007

Del 5q MDS

Solid Tumors

AG-881

NHL, CLL

REVLIMID

TIGIT

HCC

NHL, CLL

Durvalumab

NDMM, RRMM

Ph I

OMP-131R10

GBM

11

LYC-55716
Solid Tumors

Marizomib

JCAR017

Lymphoma
& Leukemia

PTCL, CTCL

RRMM

CC-122

JTX-2011

Solid Tumors

Demcizumab

RRMM

Multiple
Myeloma

NDMM, RRMM

NHL

ACY-241

RRMM

THALOMID

PanC, NSCLC,
mBC

CC-486

Myeloid
Disease

Enasidenib

IDH2 AML

CC-486

GED-0301
IBD

CC-90002
AML

Durvalumab

MDS, AML

MDS, AML

Luspatercept

MDS, Beta-thalassemia

Inflammation
& Immunology

12

Ozanimod
IBD, MS

ABX-1431
Neuro, Pain

LYC-30937
UC, PSOR

RPC-4046

CC-90001

EoE

IPF

OTEZLA
UC

CC-220
SLE

Entering a Pivotal Inflection Point with Multiple Value Drivers to

Sustain Growth from 2020-2030

19
2020
2020
2017

>$21B

$13-13.4B

revenue

revenue

9
13

TIGIT

JTX-2011

CC-90001

CC-90002

CC-95821

Pipeline Targets High Unmet Medical Need and

Provides Significant, Long-term Commercial Opportunities
Drug

Potential
Approval

Enasidenib

Current
Peak Potential

Drug

Potential
Approval

2017

bb2121

2020

Ozanimod

2018

Marizomib

2021

GED-0301

2019

Demcizumab

2021

JCAR017

2019

CC-122

2021

Luspatercept

2019

ACY-241

2021

Durvalumab

2020

RPC-4046

2021

CC-486

2020

CC-220

2022

Current
Peak Potential

LEGEND

Current Estimate of
Peak Sales Potential:

<$500M

$1B

>$2B

Note: First Durvalumab approval for a hematologic

malignancy

S U M M A R Y

Strong Momentum. Approaching Inflection Point

Increasing Momentum
Key commercial
growth drivers in place

Significant Inflection
Significant pipeline
catalysts expected

2017

$13-13.4B

Promising Future
Positioned to grow
beyond 2020

revenue

revenue

2012

2013

2014

2015

2016

2021

2030

2017 Milestones
Financial Performance
Total Revenue $13.0B-$13.4B
Net REVLIMID sales $8.0B-$8.3B
Net POMALYST sales ~$1.6B
Net OTEZLA sales $1.5B-$1.7B
Net ABRAXANE sales ~$1.0B
Adj. operating margin +150bps
Adj. Diluted EPS $7.10-$7.25
Regulatory Submissions/Decisions
FDA approval of REVLIMID in post-ASCT maintenance
EU approval of REVLIMID in post-ASCT maintenance
Submit sNDA for RVd in NDMM
File NDA for Enasidenib in IDH2-mutated AML
Submit sNDA for OTEZLA once-daily formulation
Submit NDA for Ozanimod in RMS
Trial Initiations
Initiate pivotal trial with CC-122 in NHL
Initiate pivotal trial with bb2121 in RRMM
Initiate pivotal trial with JCAR017 in NHL
Initiate Ph III trial with OTEZLA in scalp PSOR
Initiate Ph III trial with OTEZLA in AS
Initiate Ph III trial with RPC-4046 in EoE
Initiate pivotal trial with Marizomib in GBM
Initiate Ph II trial with Luspatercept in myelofibrosis

Clinical Data
Ph III apact ABRAXANE in adjuvant PanC
Ph III RELEVANCE REVLIMID in 1st line FL
Ph III AUGMENT REVLIMID in RR FL
Ph III Ozanimod in multiple sclerosis (SUNBEAM and RADIANCE)
Ph II CC-486 with fulvestrant in ER+ HER2- mBC
Ph II Demcizumab in NSCLC (DENALI)
Ph II Demcizumab in PanC (YOSEMITE)
Ph II OTEZLA in UC
Ph II GED-0301 in UC
Ph II STEPSTONE - Ozanimod in CD
Ph I/II Durvalumab in RRMM and 1st Line MDS and AML
Trial Enrollment
Complete enrollment in Ph III CD-002 GED-0301 in CD
Complete enrollment in Ph III OPTIMISSM trial
POMALYST in 2nd Line MM
Complete enrollment in Ph III ROBUST - REVLIMID in DLBCL
Complete enrollment in Ph III QUAZAR - CC-486 in AML
Complete enrollment in Ph III MEDALISTTM Luspatercept in MDS
Complete enrollment in Ph III BELIEVETM Luspatercept in beta-thalassemia
Complete enrollment in Ph III RELIEF OTEZLA in Behets
Complete enrollment in Ph III TRUE NORTH Ozanimod in UC
R&ED
File at least 8 INDs

Reconciliation Tables
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
managements view of performance 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 measures provide useful and meaningful information to us and investors because they enhance investors understanding of the continuing
operating performance of our business and facilitate the comparison of performance between past and future periods. These adjusted financial measures are
non-GAAP measures and should be considered in addition to, but not as a substitute for, the information prepared in accordance with U.S. GAAP. When
preparing these supplemental non-GAAP financial measures we typically exclude certain GAAP 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. Other companies 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 adjusted financial 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/or timing. 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. We also exclude transaction and certain other cash costs associated with business acquisitions and
divestitures that are not normal recurring operating expenses, including severance costs which are not part of a formal restructuring program.

Reconciliation Tables
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 sharebased 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 are made 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 with respect to particular programs. The variability of amounts and lack of predictability of
collaboration-related upfront expenses makes the identification of trends in our ongoing research 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 operating research and
development expenses and facilitates comparisons between periods and with respect to projected performance. All expenses incurred subsequent to the
initiation of the collaboration arrangement, such as research and development cost-sharing expenses/reimbursements and milestone payments up to the
point of regulatory approval are considered to be 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 be normal, recurring operating expenses due to their nature, variability of amounts, and lack of predictability as to occurrence
and/or timing. Research and development asset acquisition expenses includes expenses to acquire rights to pre-commercial compounds from a
collaboration partner when there will be no further participation from the collaboration partner 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 ongoing research and development activities
more difficult. We believe the presentation of adjusted research and development, which does not include research and development asset acquisition
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 be closed, employee separation costs and costs to move operations from one location to another. We do not frequently undertake
restructuring initiatives and therefore do not consider such costs to be normal, recurring operating expenses.

Reconciliation Tables
Certain Other Items: We exclude certain other significant items that may occur occasionally and are not normal, recurring, cash operating expenses from
our adjusted financial 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 certain other significant items excluded from adjusted financial results would be: expenses for significant fair
value adjustments to equity investments, significant litigation-related loss contingency accruals and expenses to settle other disputed matters.
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 net income 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 tax law 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, recurring operations (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 tax benefits related to prior year tax positions, and other similar items.
Long-Term Targets
A reconciliation of long-term adjusted financial targets to the most comparable GAAP measures cannot be provided because we are unable to forecast with
reasonable certainty many of the items necessary to calculate such comparable GAAP measures, including share-based compensation expense,
collaboration-related upfront expense, research and development asset acquisition expense, acquisition-related expenses, fair value adjustments to
contingent consideration, the ultimate outcome of legal proceedings and unusual gains and losses, as well as unforeseen events, risks and developments.
These items are uncertain, depend on various factors, and could be material to our results computed in accordance with GAAP. We believe the inherent
uncertainties in reconciling our long-term non-GAAP measures to the most comparable GAAP measures would make the forecasted comparable GAAP
measures nearly impossible to predict with reasonable certainty and therefore inherently unreliable.
See the attached Reconciliation of Estimate / Projected GAAP to Adjusted (Non-GAAP) Measures for explanations of the amounts excluded and included to
arrive at the adjusted measures for the three-month and full year periods ended December 31, 2016, and for the projected amounts for the year ending
December 31, 2017.

Celgene Corporation and Subsidiaries

Reconciliation of Estimated/Projected GAAP to Adjusted (Non-GAAP) Measures
(Unaudited)

Estimated/projected diluted earnings per common share - GAAP

(1)

Three Months Ended

December 31, 2016
Range
Low
High
$ 0.49
$ 0.57

Twelve Months Ended

December 31, 2016
Range
Low
High
$ 2.43
$ 2.51

Twelve Months Ending

December 31, 2017
Range
Low
High
$ 5.85
$ 6.21

Per share impact of excluded items before tax:

Cost of goods sold (excluding amortization of acquired intangible
assets):
(2)

0.01

0.01

0.04

0.04

0.04

0.04

Research and development:

Share-based compensation expense
Collaboration-related upfront expense
Research and development asset acquisition expense

(2)
(1)(3)
(1)(4)

0.08
0.16
0.34

0.08
0.16
0.34

0.32
1.02
1.11

0.32
1.02
1.11

0.34
0.37

0.32
0.37

Selling, general and administrative:

Share-based compensation expense
Litigation-related loss contingency accrual expense

(2)
(1)(5)

0.10
0.09

0.10
0.09

0.40
0.25

0.40
0.25

0.43
-

0.40
-

Amortization of acquired intangible assets

(1)(6)

0.15

0.11

0.59

0.55

0.45

0.41

Acquisition related (gains) charges and restructuring, net:

Change in fair value of contingent consideration
Restructuring charges

(1)(7)
(8)

0.02
-

0.01
-

0.04
0.02

0.03
0.02

0.18
-

0.16
-

Other income (expense), net:

Equity investment adjustment

(1)(9)

0.34

0.34

0.34

0.34

(0.06)
(0.11)

(0.09)
(0.11)

(0.51)
(0.11)

(0.54)
(0.11)

(0.56)
-

(0.66)
-

Share-based compensation expense

Income tax provision:

Estimated tax impact from above adjustments
Non-operating tax adjustments

(10)
(11)

Approximately $ 1.61

Estimated/projected diluted earnings per common share - Adjusted

Operating margin percentage of revenue - GAAP

Plus adjustments:
Share-based compensation expense
Collaboration-related upfront expense
Research and development asset acquisition expense
Litigation-related loss contingency accrual expense
Amortization of acquired intangible assets
Change in fair value of contingent consideration
Restructuring charges
Operating margin percentage of revenue - Adjusted

Approximately $ 5.94

Twelve Months Ended

December 31, 2016
Range
Low
High

Twelve Months Ending

December 31, 2017
Range
Low
High

7.10

7.25

(1)

27.8%

28.1%

45.1%

46.1%

(2)
(1)(3)
(1)(4)
(1)(5)
(1)(6)
(1)(7)
(8)

5.4%
7.3%
8.0%
1.8%
4.2%
0.3%
0.1%
54.9%

5.4%
7.3%
8.0%
1.8%
4.0%
0.2%
0.1%
54.9%

5.1%
0.0%
2.3%
0.0%
2.8%
1.1%
0.0%
56.4%

4.6%
0.0%
2.2%
0.0%
2.5%
1.0%
0.0%
56.4%

Explanation of adjustments:
(1)

(2)
(3)
(4)
(5)
(6)

Our projected 2017 financial measures do not include the effect of any business combinations, collaboration agreements, asset acquisitions, asset impairments,
additional litigation-related loss contingency accruals, changes in the fair value of our CVRs issued as part of the acquisition of Abraxis BioScience Inc. (Abraxis) or
non-operating tax adjustments that may occur after the day prior to the date of this press release.
Exclude share-based compensation expense.
Exclude upfront payment expense for research and development collaboration arrangements.
Exclude research and development asset acquisition expenses; 2016 includes EngMab AG.
Exclude loss contingency accrual expense related to a contractual dispute.
Exclude amortization of intangible assets acquired in the acquisitions of Pharmion Corp., Gloucester Pharmaceuticals, Inc. (Gloucester), Abraxis, Celgene Avilomics
Research, Inc. (Avila), and Quanticel Pharmaceuticals, Inc. (Quanticel). The excluded expense for 2016 includes $101.5 million related to the impairment of an
intangible asset acquired in the Avila acquisition.

(7)

Exclude changes in the fair value of contingent consideration related to the acquisitions of Gloucester, Abraxis, Avila, Nogra Pharma Limited, and Quanticel.

(8)

Exclude restructuring charges related to our relocation of certain operations into our two Summit, NJ locations as well as costs associated with certain headcount
reductions.

(9) Fair value adjustment to our equity investment in Juno Therapeutics, Inc. per ASC 320 "InvestmentsDebt and Equity Securities."
(10) Exclude the estimated tax impact from the above adjustments.
(11) Exclude the tax benefit of a loss related to a prior year acquisition.