NEW YORK — Celgene Corp. said Thursday that its net income climbed 37 percent in the third quarter, and the biotechnology company raised its forecast for the full year.
Celgene also announced a new cancer drug development partnership with a price tag that could top $1 billion.
Its shares gained $5.84, or 6.2 percent, to $100.60 in afternoon trading.
The company said its profit rose to $508.5 million, or 61 cents per share. Excluding one-time items Celgene said it earned 97 cents per share. Its revenue grew 18 percent to $1.98 billion.
Analysts surveyed by Zacks Investment Research had expected a profit of 95 cents per share and $1.95 billion in revenue.
The Summit, New Jersey, company said sales of its cancer and anemia drug Revlimid rose 19 percent to $1.3 billion. Revenue from its cancer drugs Abraxane and Pomalyst also improved.
Drug developer Sutro Biopharma said Thursday it will work with Celgene to identify potential drugs. The company said it will get $95 million upfront from Celgene, including an equity investment, and Sutro could get another $90 million during an initial research period. Celgene will have an option to buy the South San Francisco company after that period.
Sutro said it could receive more than $1 billion in total payments and royalties on sales, and said Celgene will have an option to
The company said it now expects to report an annual profit of $3.65 to $3.70 per share, up from its previous estimate of $3.60 to $3.65 per share. Celgene is still forecasting revenue of $7.6 billion.
The company's shares have climbed 12 percent since the beginning of the year, while the Standard & Poor's 500 index has climbed slightly more than 4 percent. The stock has increased 18 percent in the last 12 months.