Sunteți pe pagina 1din 90

2015

Corporate
Responsibility
Report
CELGENE 2015 CORPORATE RESPONSIBILITY REPORT i
Highlights

The Celgene Global Health The new building at


Celgene has acquired San program expanded its the Summit corporate
Diego-based Receptos, Since 2007, more than collaboration with the Drugs headquarters is on track to
a biopharmaceutical 50,000 patients in the for Neglected Diseases earn Leadership in Energy
company that develops United States (US) have initiative (DNDi) to identify and Environmental Design
therapeutic candidates for received assistance through and optimize new therapy (LEED) green building
treatment of immune and Celgene PatientSupport. candidates for the treatment program certification because
metabolicdiseases. of neglected tropical of various environmentally
diseases(NTDs). focusedattributes.

Indirect emissions from Celgene earned the


Celgene was a national Celgene became one of only electricity purchasing have #1 spot as Best Employer
sponsor for the Leukemia and
three biopharmaceutical decreased by 37% from in America in both 2013
Lymphoma Societys Light
companies to earn the CEO baseline levels in 2012 due and 2014 in Business Insider
the Night event, raising over
Cancer Gold Standard to purchasing of electricity magazine rankings, with high
$500,000, making Celgene
accreditation in the US as from certified renewable ratings by employees in both
the largest biopharmaceutical
well as globally. sources and installation of work schedule flexibility and
supporter of Light the Night.
efficient technologies. job meaning categories.

Celgene has acquired


an additional campus European Patient Group Support for World Child The Celgene Patient
in Summit, New Jersey Advocacy team was
support exceeded $3 million Cancer included donations
containing more than recognized in the 2015 STAR
in 2014, which included of more than 3,000 toys
1.2million square feet report that included a #1
funds for workshops and to childrens hospitals
for state-of-the-art ranking for Hematology
research and development conferences, education and more than $100,000
advocacy 3 years in a
facilities, laboratory and grants, sponsorships and through several European
row and a #1 ranking in
support buildings and various activities. sportingactivities. corporate image/reputation.
administrativeoffices.
Contents Our Promise
2 Message from the Changing the course of human health through bold pursuits in science,
Chairman and Chief and a promise to always put patients first.
Executive Officer
35 Commitment to Safety 67 Environment and
4 About This Report 35 Patient Safety Sustainability
6 Materiality 36 Risk Minimization and 67 Environmental Management
Management 71 Energy
7 About Our Company 37 Employee Safety 72 Water
40 Employee Wellness 73 Waste and Recycling
7 A History
7 Therapeutic Areas 73 Biodiversity
14 Clinical Development Process
42 Governance 74 Transportation
15 Global Relationships 42 Company Leadership 76 Carbon Footprint
17 Research Collaboration 43 Sustainability Governance 78 Upstream and Downstream
19 Economic Performance 44 Our Culture Activities
46 Business Conduct and Ethics 79 Compliance
79 Environmental Footprint
20 Corporate Responsibility 49 Workforce
Summary
51 Professional Development
21 Stakeholders
52 Public Policy
58 Supply Chain 80 Global Reporting
23 Patients and Initiative Index
Communities 61 Global Health
23 Patient Advocacy 61 Neglected Diseases
24 Patient Support 62 Research Collaborations
26 Community Volunteering 64 Capacity Building Collaborations
30 Education
31 Corporate Giving

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 1


Message from the
Chairman and Chief
Executive Officer
Our purpose is to change
the course of human health
through bold pursuits in
science and a promise to
always put patients first. Our
commitment is to pursue
this purpose with integrity
andresponsibility.
With that goal in mind, I am pleased to share
Celgenes 2015 Corporate Responsibility Report
which encompasses the companys business
practices to fulfill responsibly our commitment to By focusing on developing disease-altering Celgene continues to invest in Research and
patients, the healthcare system, our employees and therapies for patients with the greatest medical Development (R&D) at an industry-leading
the communities where we work and live. needs, we strive to deliver new innovative pace in an effort to accelerate patient access to
treatments with the strongest value to patients, important medicines that patients with cancer
Celgene is working within the broader healthcare
their physicians and society. and immune-inflammatory diseases so desperately
ecosystem to expand the frontiers of medical
need. Simultaneously, we scan the landscape for
innovation in an effort to help patients live Throughout 2015, Celgene has been focusing on
opportunities to enhance and expand our deep
longer, healthier and better lives. We are building growing our business by serving patients today
and diverse portfolio of next-generation medicines
a global biopharmaceutical company focused on while also building the foundation for long-term
with the potential to revolutionize the course of
the discovery, development and delivery of life- success through sustained medical innovation
human health. Currently, we have 18 pivotal/
enhancing therapies that will transform the course for the future. The dedication and commitment
phase III programs underway, 26treatments
of human health. With our growing portfolio of to excellence by our employees and partners
in clinical trials, 30programs in pre-clinical
innovative therapies, we are helping more and worldwide are the drivers of our achievements,
development and more than 700clinical
more patients around the world. leading us to have confidence in delivering on our
trialsongoing.
milestones and expectations for years to come.

2 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


In achieving our operational and financial Celgene Global Health continues to collaborate All of us at Celgene are excited about the future
performance, we rely on a strong foundation with partners around the world to find innovative and more committed than ever to creating
of Corporate Responsibility best practices solutions for healthcare challenges in low and innovative therapies for patients unmet medical
throughout our operations. This foundation middle income settings. Our work is based on the needs. Each of our employees is focused on
reflects Celgenes identity within the global belief that innovative therapies and healthcare executing for today and investing for tomorrow
ecosystem of medical innovation in support of partnerships are essential components to long- so that we may positively impact the lives of
positive opportunities for patients, our partners, term progress and prosperity around the globe. patients worldwide and create value for all
our employees and the environment. To this Celgene is working with various collaborators on ourstakeholders.
end, we continue to strengthen our longstanding screening compounds for activity against NTDs,
commitment to Celgenes five pillars of Corporate including malaria, Chagas disease, leishmaniasis,
Responsibility: Patients and Communities, tuberculosis, lymphatic filariasis and viral
Commitment to Safety, Governance, Global hemorrhagic fevers. Since 2010, Celgene has
Health and Environment andSustainability. partnered with the Academic Model Providing
Access to Healthcare (AMPATH) in Kenya
Our commitment to patients extends beyond our
to support capacity building within their
life-enhancing therapies to our patient access
oncology program.
and financial support programs. Celgene Patient Robert J. Hugin
Support aims to assist patients in gaining access In the area of Environment and Sustainability, our Chairman and Chief Executive Officer
to our innovative treatments. Since 2007, more facilities around the world strive for thorough
than 50,000 patients have received assistance adherence to environmental laws and regulations
through Celgene Patient Support. and sound environmental management. This
includes reducing waste generation, promoting
Our community engagement and support centers
water stewardship and managing energy usage.
on patient-focused programs such as the Leukemia
In furtherance of this commitment, all new
and Lymphoma Societys Light the Night, the
construction of Celgene owned facilities meets
Pancreatic Cancer Action Networks Purple Strides
exacting energy and environmental standards,
Campaign and the National Psoriasis Foundation
including a LEED certified building that we
Walks. Our focus extends to supporting science
are now completing at our Summit, New Jersey
education through our participation in programs
Headquarters.
such as Change the Equation and support for
scholarships and fellowships with the goal to help
develop the next generation of innovators.

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 3


We have selected general and specific standard facilities, such as water and energy consumption

About This Report disclosures from these guidelines that apply to our
business in a meaningful and material manner.
and some activities that occur outside of Celgene,
such as in portions of our supply chain. Site
The complete list of the GRI general and specific specific data are provided for the facilities
Celgene Corporation is a multinational, publicly standard disclosures is provided in the GRI Index included in our organization boundary, shown on
owned biopharmaceutical company committed at the end of this report. the map below.
to improving the lives of patients worldwide. We
For a full explanation of the GRI guidelines, visit The reporting boundary has been expanded
are committed to responsible transparency and
http://www.globalreporting.org. in 2014 to include 22 facilities selected based
engagement with our stakeholders.
on an operational control approach, of which
The boundary of our Corporate Responsibility
We are continuing to use the Global Celgene owns either the facility or significant
reporting includes activities within Celgene at the
Reporting Initiative (GRI) G4 In Accordance emission-emitting equipment and where data
corporate, firm-wide level, such as philanthropy
Core guidelines in our fourth Corporate are readily available to support a proper and
and global health, site-specific activities in selected
ResponsibilityReport. concise inventory. All subsidiaries are wholly

Location of facility Countries where Celgene has other


within reporting boundary Offices and/or Direct Sales operations
Countries included in Countries where Celgene operates
Celgenes reporting boundary through distribution

4 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


owned, as are all major operations and no major Reviewing this report content in accordance with
operations exist for which Celgene has control the range of GRI disclosures helps Celgene to
but not ownership. Facilities and sources that are identify possible reporting gaps and areas that
outside the selected boundary include smaller- may warrant further accounting and interest
sized leased facilities, in particular laboratories, for future Corporate Responsibility programs.
warehouses and office space where Celgene does Historical data are included as appropriate,
not own significant energy-consuming equipment available and accurate as possible. The report
or direct emission sources. A complete list includes plans for 2015 and beyond, where
of entities within Celgene Corporation is applicable, that illustrate our approach to
included in our Annual Reports and 10Kfilings. integrating Corporate Responsibility programs
We continue to enhance our data collection across our global company. Monetary values
procedures and organizational boundary to Celgene Corporate Headquarters provided throughout the report are in USdollars
produce future reports that are comprehensive Summit, New Jersey, US unless noted otherwise.
and include additional facilities and operations
Environmental, economic, labor and health and
with notable impacts. Throughout this report
safety data include widely accepted parameters
previously stated values have been revised and
and units that are collected from appropriate
restated to account for the expanded boundary
departments within Celgene. Environmental
of 22facilities, where applicable.
performance and emissions are calculated using
The 2015 Celgene Corporate Responsibility pertinent raw data acquired from each facility
Report focuses on activities and performance and carbon emissions are calculated using the
during the 2014 calendar year, as well as existing greenhouse gas (GHG) Corporate
important and impactful events and activities Accounting and Reporting Standard developed
that have occurred since 2010 and during the by the World Research Institute and the World
first half of 2015. Business Council for SustainableDevelopment.

Celgene International Headquarters


Boudry, Switzerland

Reporting Statistics
Period Covered: 20102014 (calendar years) and important and impactful events from the first half of 2015
Most Recent Report: December 2014
Periodicity of Corporate Responsibility Reporting: Annual
Contact: Celgene welcomes thoughts and comments on this report through email at corporateresponsibility@celgene.com. Your comments support our
progress on accurate and transparent reporting about our environmental, social, economic and governance performance.

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 5


Celgene 2015 Materiality Matrix
Materiality
Materiality Matrix
We assess our Corporate Responsibility
program and practices in terms of items
and topics that are material to Celgenes Significant Priority Commitment to
Health Globally
current operations, potentially material in the Pricing Celgene Patient Access
Principles
near future and those that are not directly Global Health to Medicine

controlled, such as activities within our supply Counterfeit Patient


Drugs Advocacy
chains. Items and aspects deemed material have Foreign
Transparency
Corruption
Patient Safety
Investment and Bribery
a financial, social or environmental impact Medical
Environmental Innovation
on the companys day-to-day operations. Our Compliance
Workforce Business
strategies related to business governance, Training and
Education
Diversity and Equal Public Policy Stakeholder Collaborations
Opportunities Advocacy Engagement
environmental stewardship, community

Importance to Stakeholders
involvement, labor relations and other material Outreach to
Researchers and
Impacts of
aspects are presented throughout this report Climate Change Healthcare
on Human Health Professionals
to show the broad Corporate Responsibility
National
framework that exists at Celgene. Carbon Emission Pharmaceuticals in Drug Agency
Ethics and
Integrity
Reduction the Environment Compliance
These aspects are a priority to our stakeholders,
including shareholders, employees, patients Relevant Significant
and the communities where Celgene operates.
Energy Efficiency Product
The aspects are also spread across the Five Water Efficiency
Sustainability Manufacturing
Drug Safety
and Supply Chain
Pillars of Corporate Responsibility. Additional Management
Green
stakeholders were identified as having a bearing Procurement
on business operations in some fashion, either Waste
externally or internally. Our current materiality Minimization Employee Health
and Safety
assessment allows us to determine issues
Employee
deemed as most material and impactful to our Recruitment,
Development and
company and our stakeholder populations and Engagement
these issues are presented in the materiality
Intellectual
matrix across the different areas that rank Property
material priority. In the future, we will use
a more in-depth materiality assessment that
involves stakeholder surveys and discussions Importance to Celgene
aimed to deepen our understanding of priority
issues and enhance our focus on thesepriorities. Environment & Sustainability Global Health Commitment to Safety
Patients & Communities Governance

6 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


Therapeutic Areas
About Our Celgene is committed to helping patients who
Celgene Recognized as
the Top Employer
Company suffer from a wide range of debilitating diseases
and disorders. Our long-term commitment to
Celgene has been distinguished as attaining
discovering, developing and delivering entirely
the #1 spot as Best Employer in America
A History new classes of therapies is evident in our deep
in both 2013 and 2014 in the ranking from
and diverse pipeline of novel compounds.
Celgene Corporation is committed to improving Business Insider. This magazine and online
Representing many classes of therapeutic agents,
the lives of patients around the world through business site analyzes the Fortune 500
these compounds are designed to potentially alter
innovative treatments and therapeutic companies based on various factors ranging
the course of disease. The richness of our pipeline
developments. Our portfolio consists of therapies from job satisfaction, years employed and
gives us the potential to continue expanding and
and patient services, including REVLIMID, compensation. Celgene was rated extremely
further developing innovative new therapies for
ABRAXANE, POMALYST/ IMNOVID, high by employees in both work-schedule
years to come.
OTEZLA, VIDAZA, THALOMID, flexibility and job meaning.
ISTODAX, LifebankUSA and BIOVANCE. Celgene invests significant resources into creating
disease-altering therapies for cancer and other
Celgenes business expansion over the past serious immune-inflammatory conditions.
25 years includes new biopharmaceutical and Currently, the Celgene pipeline consists of more
clinical fields for product development and than 25 unique compounds addressing more
disease-altering therapies, while continuing to than 30 disease areas. Today, our portfolio of
focus on quality outcomes for the global patient approved treatments has provided life-changing
population. Our most focused research areas benefits to patients in more than 70 countries.
include immunomodulation in cancer, solid tumor Through researching powerful mechanisms,
cancers, immune-inflammatory diseases, blood such as modifying the bodys immune response,
disorders and diseases and treatment applications or creating unique delivery systems that turn
utilizing stem cell-based therapies. cancer cells own survival mechanisms against
2014 marked a dynamic year of milestones themselves, we strive to make significant
for our company and our existing therapies in improvement in patient health outcomes.
addition to the approvals for six therapies in the Our discovery and development of innovative
first half of 2015 in Europe, which included: biopharmaceutical therapies are accomplished
The expanded use of ABRAXANE through our four major franchises. These
biopharmaceutical and healthcare franchises
The new inflammation and immunology serve the global population of our patients
therapy, OTEZLA through the specified products in each Hardy Jones
therapeutic area. St. Augustine, FL
Multiple Myeloma

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 7


The global launch of POMALYST/IMNOVID Our Hematology program, which achieved
advanced with reimbursements in Scotland, Spain, several major milestones during the previous year,
Sweden, Switzerland and Japan. This therapy has continues to expand our leadership position and
also become the subject of multiple combination our significant research efforts have positioned us
studies alongside new agents in heavily pre-treated to advance our pipeline of innovative products in
patients and has obtained labeling approval by areas of unmet medicalneed.
the US Food and Drug Administration (FDA) that
Our Oncology Franchise is focused on redefining
provides information on survivalbenefits.
and improving the treatment paradigm in
In myelodysplastic syndromes (MDS), the launch pancreatic cancer, securing new regulatory
of REVLIMID for patients with deletion 5q MDS approvals across the globe and accelerating our
continued in Europe and included a positive global development program in earlier stage
final appraisal determination from the National treatment and novel combinations. With approvals
Institute for Health and Care Excellence in the for advanced breast, lung and pancreatic cancers
United Kingdom (UK). There were also critical in more than 40 countries, ABRAXANE remains
findings in acute myeloid leukemia in a Phase III an essential chemotherapy for treatment success in
study of VIDAZA that showed an improvement challenging cancers and is the cornerstone of our
in survival for older patients when compared with Oncology Franchise. ABRAXANE has enabled us
Doug Farrell
conventional care. to provide an effective treatment option for many
Philadelphia, PA underserved patients.
In lymphoma, an assessment by the European
Multiple Myeloma Medicines Agency (EMA) is underway for an In pancreatic cancer, ABRAXANE (in
The Hematology Franchise provided significant expected regulatory decision for REVLIMID in combination with gemcitabine) is the first and
regulatory milestones and important clinical mantle cell lymphoma in Europe during 2015. only taxane-based chemotherapy proven to
advances throughout 2014 in all of our areas of Results in a study of REVLIMID in diffuse large extend survival. In 2014, patients in Australia,
disease focus. In multiple myeloma, we recently B-cell lymphoma demonstrating activity in the Canada, Japan and Switzerland joined the more
solidified our leadership position as REVLIMID, hard-to-treat activated B-cell subtype lymphoma than 40 other countries that now have access
in combination with low-dose dexamethasone, have also been presented. These results showed to ABRAXANE. Approvals in metastatic breast
received expanded approvals, making it available that the addition of REVLIMID to conventional cancer continued into new regions, such as Latin
for newly diagnosed patients in the US and R-CHOP resulted in longer progression free America as well as parts of Asia. Most recently,
Europe. These approvals were the result of years survival and overall survival rates across patient our regulatory application for non-small cell
of effort and one of the largest studies ever groups. The combination of REVLIMID and lung cancer was approved in Europe and in
conducted for this disease. Many newly diagnosed Rituxan continues to be the subject of multiple March 2015, ABRAXANE was approved by the
patients will now have access to this innovative, independent studies over the course of the year Hong Kong Department of Health as a first-line
oral combination for the first time and research and is now part of five Celgene-sponsored Phase treatment for late-stage pancreatic cancer in
continues in dozens of clinical trials of new agents III studies underway in various lymphomas. combination with gemcitabine.
in combination with a backbone of REVLIMID
and low-dose dexamethasone therapy.

8 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


Our global development program continues to In 2014, Celgenes I&I Franchise made several
grow with more than 100 studies of ABRAXANE advances. In the US, we launched our oral anti-
as the backbone of therapy in difficult to treat inflammatory PDE4-inhibitor, OTEZLA, for
cancers, such as triple-negative breast cancer patients with psoriasis and psoriatic arthritis
and squamous cell lung cancer. Our global study (PsA). OTEZLA had strong early launch
in triple-negative metastatic breast cancer and metrics, including the rapid acceleration of total
exploration for new clinical opportunities in lung prescriptions and sales and leadership position
cancer also continued, with our multi-study lung share of new patient starts in PsA.
cancer program expanding into Europe.
In addition to the US commercial launches,
In addition, we continue to leverage the unique OTEZLA was approved in Canada for psoriasis,
attributes of ABRAXANE as a chemotherapy in Australia and Israel for patients with both
in combination with immunotherapies. Given PsA (in mid-2015) and plaque psoriasis (PSOR)
its lack of premedication with steroids, we are (in late 2014) and in early 2015 in the European
working with multiple partners in either providing Union (EU) for two therapeutic indications:
ABRAXANE or leading studies in challenging
For the treatment of moderate-to-severe
tumor types. Late last year, a Phase I study was
chronic PSOR in adult patients who failed to
initiated of ABRAXANE in combination with Lois Minta respond to or who have a contraindication to
Bristol-Myers Squibbs immuno-oncology
therapy OPDIVO. Earlier this year, Roche
Atlanta, GA or are intolerant to other systemic therapy.

announced several Phase III combination studies Psoriatic Arthritis For the treatment of active PsA in
in non-squamous and squamous lung cancer adult patients who have had an
Nearly 253 million people worldwide have an
with ABRAXANE and its immuno-oncology inadequateresponse.
immune disorder and our Inflammation and
therapy, atezolizumab. Our collaboration with Additional new drug application and marketing
Immunology (I&I) Franchise is fully engaged and
OncoMed Pharmaceuticals also continues authorization application submissions for the
committed to bringing the clinical benefits of our
to expand as they evaluate demcizumab in PsA and psoriasis indications are ongoing or
rich pipeline of assets to this patient population.
combination with ABRAXANE in pancreatic are planned in several other countries/regions,
The continued growth of the I&I Franchise is
cancer and in lung cancer in combination with including Japan, South East Asia and Russia.
driven by our focus to develop, bring to market
other chemotherapies.
and provide widespread patient access to our OTEZLA also has potential for other underserved
transformational therapies for underserved patient populations. For example, new indications
patients with immune-inflammatory disorders. and opportunities under investigation include
Our growth trajectory in the I&I area through Phase II trials in atopic dermatitis and ulcerative
2020 is strong with great expansion potential colitis, the enrollment of patients in a Phase
expected from existing and pipeline products that III trial for Behets disease and the regulatory
we believe will ensure our long-term success. submission of data in Turkey (the country with
the highest prevalence of Behets disease) based
on the Phase II data.

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 9


OTZELA Direct to Celgene acquires Receptos
PatientAdvertising In August 2015, Celgene finalized
In June 2015, direct to patient advertising acquisition of San Diego-based Receptos, a
for OTEZLA was launched for both the biopharmaceutical company that develops
Internet and for television. The advertisement therapeutic candidates for treatment of
features the benefit of information to patients immune and metabolic diseases. Receptos
regarding this new oral treatment option. is developing the drug ozanimod, an oral,
The commercial showcases Celgenes greater novel and potentially best-in-class selective
commitment to patients and advocacy for modulator that has demonstrated advantages
patient access to our therapies. over existing oral therapies for treatment of
ulcerative colitis (UC) and relapsing multiple
The advertisement can be found here. sclerosis (RMS).

Phase II data have already been published


Kara Errington and presented and show ozanimod meeting
Summit, NJ key clinical and endoscopic endpoints for
Psoriasis UC for both induction and maintenance with
statistical significance in patients. The overall
A very important addition to our portfolio in 2014 safety and tolerability profile of ozanimod
was the acquisition of GED-0301, which shows was consistent with results of a Phase II
significant potential for patients with Crohns trial in RMS. Phase III trials are currently
disease. A multi-trial pivotal program designed to underway with data expected in 2017 for
support global regulatory registration in Crohns RMS and in 2018 for UC.
disease is underway and Celgene plans to initiate a
This acquisition builds upon Celgenes
Phase III clinical trial program by the end of 2015.
growing expertise in inflammatory bowel
Also, CC-220 (cereblon modulator) is in a Phase
disease and the overall I&I portfolio. Along
II trial for lupus, which affects fivemillion people
with OTEZLA and GED-0301, ozanimod
worldwide. Another promising molecule includes
will add to the development of therapies
sotatercept (ACE-011) that shows positive effects
targeting Behets disease, Crohns disease,
on anemia, bone and vascular calcification as it
UC and RMS, which represent areas of high
proceeds to a larger Phase II-b trial.
unmet medical needs for patients.

10 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


Our Research and Early Development teams Immuno-oncology: Several of our key
are advancing disruptive scientific innovations assets, such as REVLIMID, ABRAXANE
in critical areas of hematology, oncology and and CC-486, are uniquely positioned
immune-inflammatory diseases. We have created and potentially complementary to
an integrated and distributed research model emerging immuno-oncology drugs. We are
designed to complement our internal strengths committed to broadening our footprint
by collaborating with the most exciting emerging through expanded internal capabilities and
companies and academic groups. In 2014, we externalalliances.
entered into over 10 new partnerships and
We intend to create new TCoE in additional
extended the scope of existing collaborations.
research areas in which we have scientific
Adding external talent and resources to our
strength and unique competitive advantages.
own extends our access to novel programs
Our distributed research model and the internal
and creates powerful drug discovery and
alignment around the TCoE are designed to
developmentplatforms.
optimize efficiency and productivity so that
Celgene established the first three Thematic we can sustain the advancement of landmark
Centers of Excellence (TCoE) in: therapies to transform the treatment of Livia Bebing
seriousdiseases.
Protein Homeostasis: With our enhanced Pittsburgh, PA
insights on cereblon, the target protein for Celgenes Research and Development sustains a Myelodysplastic Syndromes
REVLIMID and POMALYST/IMNOVID, deep and diverse pipeline of paradigm-changing
we are redefining the therapeutic potential therapies across the biopharmaceutical sector.
of protein homeostasis. We are developing microscopy, genomics, immunohistochemistry
The Celgene Institute for Translational Research and state-of-the-art computational analysis
next-generation drugs, called CELMoDs
Europe (CITRE) in Seville, Spain, is the companys infrastructure for biomarker discovery and patient
(Cereblon E3 Ligase Modulation Drugs),
first dedicated R&D site outside the US and stratification.
designed with novel chemistry and
provides a bridge between Celgene R&D and the
differentiated properties that potentially Together, these components form a Translational
European research community. Founded in 2010,
enable us to address a broader range Research center that coordinates and conducts
CITREs activities focus on Translational Research
ofdiseases. Celgene medical research in Europe and enables
into new treatments for cancer and other rare
Epigenetics: Our leadership position and complex diseases to ensure that laboratory rapid and effective transfer of new developments
within epigenetics is anchored by our two advances in personalized medicine reach the and discoveries to European patients. Furthermore,
commercially available drugs (VIDAZA patients who need them. CITRE provides a focal point in Europe for
and ISTODAX) and an expanding clinical collaborative translational research into cancer and
Scientific activities at CITRE comprise three inflammatory diseases, with a mission to rapidly
portfolio of epigenetic therapies that further
main departments: The Human Diseased Tissue deliver new Celgene compounds.
strengthen our capabilities in this critical area
Laboratory, the Computational Biology research
of research.
group and the Clinical Trials Unit. Onsite facilities
include extensive cell culture, flow cytometry,

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 11


The Celgene Translational Development Center, The newly established Immuno-Oncology
located in San Francisco, California, US, serves Thematic Center of Excellence is located at the
as our main site for immunomodulatory drugs new research facility in Seattle, Washington, US
(IMiDs) research. Translational Development This facility will provide translational support for
at Celgene is an integrated, multi-disciplinary key assets in the I&I clinical portfolios as they
function that facilitates the transition of drug develop therapies and external alliances in the
candidates from drug discovery through immuno-oncology area. There are laboratories for
development by enabling determination of cellular immunology, molecular biology, protein
therapeutic index, dose, schedule and responsive chemistry, flow cytometry and other areas that
patient populations and contributing to regulatory will deal with pre-clinical work with human
dossiers and product labels. The function explores primary cells andtissues.
the mechanism of efficacy of Celgene therapies,
The Drug Discovery & Alliance Development
as well as mechanisms of resistance. Translational
Center in San Diego, California, US, is our hub
Development also focuses on adding value to
for epigenetics and intracellular signaling R&D.
existing products by providing rationale for new
Our growing investment in the development of
indications and therapeutic combinations to
immunomodulatory agents and cell signaling
address unmet medical needs for patients.
inhibitors, as well as in the development of Pat Williams
Celgene Avilomics Research (CAR), located in cellular and tissue therapeutics, will allow us
Orlando, FL
Bedford, Massachusetts, US, joined the Celgene to provide physicians/clinicians with a more
team through the acquisition of Avila Therapeutics comprehensive and integrated set of solutions Multiple Myeloma
in March 2012 and is primarily focused on the for managing complex human disorders such as
Avilomics platform of targeted covalent inhibitors. cancer and inflammatory diseases. Celgene Cellular Therapeutics (CCT) located in
Targeted covalent drugs bond with disease-causing Cedar Knolls, New Jersey, is our wholly owned
The laboratories and R&D space at our Corporate
proteins in a way that not only inhibits these subsidiary focused on the development of stem
Headquarters in Summit, New Jersey, US,
proteins, but silences them completely. This cell therapies from human placentas and umbilical
include good manufacturing practice and quality
silencing lasts for the life cycle of the protein. cord blood. Having developed proprietary
control space for testing of therapies. Additional
The covalent bonding mechanism leads to four technologies for collecting, processing and storing
laboratories include those for drug metabolism
primary benefits: enhanced selectivity, potency placental stem cells, CCT is now evaluating the
pharmacokinetics, translational development,
toward the targeted protein, prolonged duration potential of cellular therapies in cancer and a
analytical R&D and other departments.
of action and retained efficacy against resistance- number of other autoimmune, cardiovascular,
causing mutations. CAR has multiple ongoing neurological, inflammatory and degenerative
pipeline projects that continue to make progress diseases. LifebankUSA is CCTs cord blood,
toward development candidate nominations placenta blood and tissue banking business that
and several projects that have been part of a serves as the source for the cell therapy, organ and
collaboration with Sanofi. tissue products.

12 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


To date, LifebankUSA has released stem cells totreat: CCT achieved another major milestone in Investment in Research andDevelopment
mid-2014 with the launch of BIOVANCE, its
Acute myelogenous leukemia (AML) Over the last 6 years, Celgene reinvested more
first commercial product. BIOVANCE (human
than 30 percent, on average and on a generally
Cerebral palsy amniotic membrane allograft) is a new wound
accepted accounting principles (GAAP) basis,
Chronic lymphocytic leukemia management product developed by CCT to assist
of revenues in R&D, which is well above the
wound care specialists, as well as vascular, plastic
Fanconi anemia biopharmaceutical industry average. These
and general surgeons, in the treatment of a wide
investments in R&D support the various
Histiocytosis variety of complex, acute, chronic, recalcitrant,
clinical development programs for our existing
full and partial thickness wound types.
Myelodysplasia therapies and those within the pipeline of new
BIOVANCE is derived from a natural treatmentcandidates.
Myelodysplastic syndrome source- the placenta of a normal, full-term
This commitment to research has enabled our
Non-Hodgkins lymphoma human pregnancy. The product provides
company to build a broad and deep pipeline,
protection and support to the wound it
Sickle cell anemia through our own efforts and as a part of
covers and supports the bodys ability to heal
strategic collaborations with external partners.
Other diseases and orchestrate natural tissue restoration.
Many therapies are now in clinical development
BIOVANCE represents a key application of
In 2014, a LifebankUSA stem cell unit was used to and under regulatory review in the US
regenerative medicine for advanced wound
treat its 50th patient, a 9-year-old boy with Fanconi andinternationally.
care. CCT has a strategic partnership with
anemia, a rare, inherited blood disorder that leads
Alliqua Biomedical for the development and
to bone marrow failure and leukemia. These stem
commercialization of our portfolio of tissue-
cells were used to replace other cells in the body that
based advanced wound management products.
were abnormal or had been destroyed by disease.
The patients parents stored his siblings stem cells at
LifebankUSAs state-of-the-art facility in Cedar Knolls, Celgene R&D Spend and Proportions of Revenue
New Jersey, US, for 54 months prior to transplant.
2,500 45%
(GAAP) (Million Dollars)

40%
Future Brand 2015

R&D Spend /Revenue


2,000 35%
Celgene R&D Spend

30%
For the first time, Celgene was added to the 1,500
2015 Future Brand Index, ranking #9 among 25%
the top 100 global companies. A future brand 20%
1,000
is described as one that is likely to succeed in 15%
the future and balance strong perceptions of 10%
500
its purpose and the experience it delivers. This
5%
recognition is a tribute to the growing public
perception of Celgene on a global level. 0 0%
2009 2010 2011 2012 2013 2014

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 13


Clinical Development Process
Celgene has developed target-identification and The steps within this process highlight the This type of process has been and will continue
therapy-discovery technology platforms that R&D stages necessary to generate the data and to be applied to all Celgene therapies during the
enable the company to proceed rapidly from information that determine the safety, use and R&D stages. The regulatory review, filing and
target identification and validation through lead medical indications of the finaltherapy. approval processes are directed by the applicable
identification and optimization. Developing a new governmental body, such as the FDA, the
medicine takes an average of 10 to 15years at an European Commission and Japans Ministry of
estimated cost of $2.6 billion . 1
Health, Labour and Welfare.

Pre-
Therapy Clinical Regulatory Innovator
Discovery Trials Clinical Trials Review Exclusivity Generic
PRE-DISCOVERY

5,000-
10,000 250 5
Compounds ONE
APPROVED

NDA SUBMITTED
IND SUBMITTED

THERAPY
Phase III
Phase II
Phase I

3-6 Years 6-7 Years 1-2 Years 10-12 Years FOREVER

Source: Paul S, Mytelka D, Dunwiddie C, et al. "How to Improve R&D Productivity: The Pharmaceutical Industrys Grand Challenge." Nature Reviews Drug Discovery.
March 2010; available from: doi:10.1038/nrd3078. Accessed June 24, 2014.
Note: Length of time at each stage is approximate.
Tufts Center for the Study of Drug Development (TCSDD). R&D Cost Study Briefing; November 18, 2014.
1

http://csdd.tufts.edu/files/uploads/Tufts_CSDD_briefing_on_RD_cost_study_-_Nov_18,_2014..pdf. Boston, Mass.: CSDD. Accessed February 2015.

14 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


Global Relationships Assobiotec Associazione Nazionale per lo HollandBIO (Netherlands)
Sviluppo delle Biotecnologie (Italy)
Celgene maintains active memberships in national Interfarma Assoio da Indstria
and international organizations within the Association of Research-Based Farmacutica de Pesquisa (Brazil)
pharmaceutical and biopharmaceutical sectors. Pharmaceutical Companies (Turkey)
IFPMA - International Federation of
Our relationships with these organizations BIOTECCanada (Canada) Pharmaceutical Manufacturers and
are important in helping all members of the Associations (Switzerland)
BIOCOM (California, US)
industry serve patients and the community. These
Irish Pharmaceutical Healthcare
organizations are also involved with public policy Bio Deutschland (Germany)
Association(Ireland)
discussion, debate and consensus. Celgenes
BioFarmind (Netherlands)
membership includes the following organizations: Japan Pharmaceutical Manufacturers
BioNJ (New Jersey, US) Association (Japan)
AMCP - Academy of Managed Care
Pharmacy (US) BIO - Biotechnology Industry Korean Research-Based Pharmaceutical
Organization(US) Industry Association (Korea)
Alliance for Regenerative Medicine (US)
Bundesverband der Pharmazeutischen LEEM - Les Entreprises du
AMIIF Asociacin Mexicana de Industrias
Industrie (Germany) Medicament(France)
de Investigacin Farmacutica (Mexico)
CANIFARMA - Camara Nacional de la LIF - Swedish Association of the
ASEBIO - Asociacin Espaola de
Industria Farmaceutica (Mexico) Pharmaceutical Industry (Sweden)
Bioempresas (Spain)
CEO Roundtable on Cancer (US) Medicines Australia (Australia)
Asociacin Nacional Empresarial de la
Industria Farmacutica (Spain) COA - Community Oncology Alliance (US) National Health Council (US)
Associao Portuguesa da Indstria EBE - European Biopharmaceutical National Pharmaceutical Council (US)
Farmacutica (Portugal) Enterprises(Europe)
PhRMA - Pharmaceutical Research and
AIFD Arastirmaci la Firmalari Dernei EUCOPE - European Confederation of Manufacturers of America (US)
(Turkey) Pharmaceutical Entrepreneurs (Europe)
RDPAC - R&D-Based Pharmaceutical
AIFP - Association of Innovative EFPIA - European Federation of Association Committee (China)
Pharmaceutical Industry (Czech Republic) Pharmaceutical Industries and Associations
United Kingdom BioIndustry Association
(Europe)
AIPM - Association of International (UK)
Pharmaceutical Manufacturers (Russia) Forum of International Research
US Chamber of Commerce (US)
and Development Pharmaceutical
Association Gnrale de lIndustrie du
Industries(Slovenia) Nefarma - Vereniging Innovatieve
Mdicament (Belgium)
Geneesmiddelen Nederland (Netherlands)
Healthcare Institute of New Jersey
ABPI The Association of the British
(NewJersey, US) VIPS - Vereinigung Pharmafirmen in der
Pharmaceutical Industry (UK)
Schweiz (Switzerland)

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 15


Celgene and a large number of Celgenes GRAPPA Group for Research and
personnel are involved in the congresses, Assessment of Psoriasis Psoriatic Arthritis Lights Upon the Mountain
committees, professional publications, sponsorship
Hematology/Oncology Pharmacy Association
or support for the followingorganizations: Celgene is a co-founder of the Lights Upon
IASLC - International Association for the the Mountain awards, which is given to
Academy of Oncology Nurse &
Study of Lung Cancer senior leaders in Japans scientific and medical
PatientNavigators
ICBD International Congress on Behets community who are making impactful
Advanced Breast Cancer International contributions to the health of the Japanese
Disease
Consensus Conference people. The awards were presented in May
IFPA - International Federation of 2015 in Tokyo and Bob Hugin attended and
American Academy of Dermatology
PsoriasisAssociations recognized the works of Dr. Hiroshi Handa of
American Association for Cancer Research the Tokyo Medical University. Dr. Handa and
International Congress on Hematologic
American College of Rheumatology Malignancies his colleagues are working with Celgene to
study the impact of ligase protein cereblon, a
ASCO- American Society of International Congress on Malignant direct protein target for immunomodulatory
ClinicalOncology Lymphoma and antiproliferative activities of REVLIMID
ASCO GI - American Society of Clinical International Myeloma Foundation andPOMALYST.
Oncology Gastrointestinal
International Society of
ASH - Association Society of Hematology GastrointestinalOncology
Association of Community Cancer Centers International Workshop on Chronic
Lymphocytic Leukemia
Association of Oncology Social Work
IPC - International Psoriasis Council
CAPP - Canadian Association of Psoriasis
Patients Medical Group Management Association
Chemotherapy Foundation Symposium Multiple Myeloma Research Foundation
EADV - European Academy of Dermatology Myelodysplastic Syndromes Foundation
& Venereology
National Comprehensive Cancer Network The Lights Upon the Mountain awards will
European Cancer Congress be given annually to recognize scientific,
National Psoriasis Foundation
European Hematology Association medical and healthcare professionals who
Oncology Nursing Society in their older years continue to demonstrate
EULAR - European League leadership in improving health care and
SABCS - San Antonio Breast
AgainstRheumatism innovation in service to patients in Japan.
CancerSymposium
EURORDIS European Organisation for
World Congress of Dermatology
Rare Diseases
World Cutaneous Malignancies Congress

16 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


Research Collaborations
Celgenes Distributed Research Model
Celgene has fostered a series of research
partnerships across the biopharmaceutical
ecosystem. Our distributed research model illustrates the breadth of Celgenes collaborative strategy, designed
AstraZeneca, through its biologics division to complement Celgenes internal research efforts, while further strengthening our existing
MedImmune, initiated a development and Hematology/Oncology and I&I Franchises.
commercialization agreement with Celgene for
MEDI4736, an investigational immune checkpoint
inhibitor. The goal of this inhibitor is to counter
immune-evading tactics from programmed death-
ligand 1 (PD-L1), which helps tumors avoid
detection by the immune system. MEDI4736
will be assessed for hematology applications as
a monotherapy and in combination with other
AstraZeneca and Celgene cancer therapies.
Through a collaboration agreement, Celgene
and OncoMed Pharmaceuticals intend to jointly
develop and commercialize up to six anti-cancer
stem cell product candidates from OncoMeds
biologic pipeline, including demcizumab. These
candidates are used to block the cancer cells
ability to renew, as well as inhibit tumor growth.
Through a collaboration and license agreement
with Epizyme, we aim to discover, develop and
commercialize novel therapeutic compounds
by inhibiting histone methyltransferases, an
important epigenetic target class.

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 17


The strategic collaboration we have with The global collaboration for the development Celgene formed a collaboration with FORMA
Acceleron Pharma pertains to the development and commercialization of immunotherapies with Therapeutics Holdings, LLC to discover, develop
and commercialization of sotatercept (ACE011) Juno Therapeutics, Inc. began in mid-2015. This and commercialize therapy candidates to regulate
and luspatercept (ACE-536). Sotatercept is collaboration will leverage T cell therapeutic protein homeostasis targets. This has significance
currently in Phase II studies for treatment of renal strategies to develop treatment for patients with for neurodegenerative, oncology and other
anemia, beta-thalassemia and MDS. Luspatercept cancer and autoimmune disease with an initial disorders and involves a regulated network of
is currently in Phase II studies for beta-thalassemia focus on Chimeric Antigen Receptor Technology pathways controlling biogenesis, folding, transport
and MDS. (CAR-T) and T Cell Receptor technology. The use and degradation of proteins.
of CAR-T aims to improve on immunotherapies
A discovery and development collaboration and In 2014, Celgene entered into a second
by removing disease-fighting T cells from blood
license agreement that began in 2010 with Agios collaboration and license agreement with Sutro
and re-engineering them to target cancer cells with
Pharmaceuticals focus on cancer metabolism Biopharma to jointly develop up to six prioritized
near laser-like focus and act like a cancer-killing
targets. In June 2014, Celgene exercised the option anti-cancer antibody drug conjugates and/or bi-
force within the body.
to license AG-221 from Agios on an exclusive, specific antibody constructs directed primarily to
worldwide basis. AG-221 is currently in a Phase The Acetylon Pharmaceuticals collaboration immuno-oncology targets.
I study in patients that harbor an Isocitrate is intended to support the development of oral,
Zymeworks Inc. recently announced a
Dehydrogenase 2 (NADP+), Mitochondrial selective histone deacetylase (HDAC) inhibitors
collaboration and licensing agreement with
(IDH2) mutation with advanced malignancies, in oncology, hematology, immunology and
Celgene for the R&D and commercialization
including acute myeloid leukemia. In January neurological disease indicators. The four prime
of bi-specific antibody therapeutics. The terms
2015, Celgene extended the collaboration with therapies within this collaboration are an oral first-
of the agreement call for collaboration on the
Agios to include exclusive licensing of AG-120 in-class selective HDAC inhibitor being developed
R&D of multiple bi-specific antibodies with
outside of the US AG-120 is a first-in-class, oral, for hematological malignancies, an inhibitor for
the option to advance candidates into clinical
potent inhibitor of the mutant IDH1 protein. neurological diseases, a selective HDAC inhibitor
development and commercialization. Bi-specific
This drug is currently being evaluated in two and an unnamed project spanning cancer and non-
antibodies are designed to bind to two biological
Phase I dose escalation trials in both advanced cancer disease indicators.
targets instead of just one, producing synergistic
hematologic malignancies and advanced solid
Celgene and bluebird bio have a global or additive therapeutic responses. This drug
tumors in patients whose cancer harbors an
collaboration agreement focused on developing development approach is primarily used in cancer
IDH1mutation.
product candidates targeting B-cell maturation immunotherapy and inflammatory diseases. This
The collaboration with VentiRx is focused on the antigens (BCMA). BCMA is a cell surface protein collaboration will help Celgene further research
R&D and commercialization of novel Toll-Like that is expressed in normal plasma cells and in in the emerging field of bi-specific antibodies
Receptor 8 immunotherapies for the treatment of most multiple myeloma cells, but is absent from that aim for a specific single molecular target
cancer and respiratory and inflammatory diseases. other normal tissues. Celgene and bluebird ofdisease.
VTX-2337 is a novel immunotherapy candidate bio will work collaboratively on the initial, lead
that will augment current cancer treatment anti-BCMA product candidate (bb2121), with a
regimens and is currently in Phase II clinical trials. Phase I clinical trial expected to begin enrollment
in early 2016 along with developing next-
generation anti-BCMA product candidates.

18 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


Economic Performance Celgene Economic Performance 2010-2014
Celgenes 2014 revenue was $7.67 billion,
representing a $1.18 billion increase from 2013.
(Million Dollars)
Economic profiles are presented in the following 2010 2011 2012 2013 2014
tables and represent our revenues and certain
expenses; our financial contributions to non-profit Product Sales REVLIMID 2,469.2 3,208.2 3,766.6 4,280.3 4,980.0
organizations, research groups and miscellaneous Revenue
VIDAZA 534.3 705.3 823.2 803.3 611.9
entities are detailed and presented in the Patients
and Communities chapter. Further information, ABRAXANE 71.4 385.9 426.7 648.9 848.2
annual reports, proxy statements, quarterly
POMALYST - 0.6 12.0 305.4 679.7
financial results, US Securities and Exchange
Commission filings, stock information and THALOMID 389.6 339.1 302.1 244.5 221.2
questions related to becoming an investor can be
OTEZLA - - - - 69.8
found on Celgenes Investor Relationswebsite.
ISTODAX 15.8 30.9 50.0 54.0 65.6

Other 28.1 29.7 5.0 25.9 87.4


2014 Financial Results
Total Product Sales 3,508.4 4,699.7 5,385.6 6,362.3 7,563.8
Total Net $7.56 Billion
ProductSales (+18.9% Y/Y) Regional US 2,188.5 2,860.9 3,169.1 3,862.1 4,482.8
Revenues
$7.67 Billion Europe 1,266.8 1,477.5 1,617.7 1,865.7 2,310.8
Total Revenue
(+18.1% Y/Y) All Others 170.4 503.7 719.9 766.1 876.8
Adjusted Diluted $3.71 Total 3,625.7 4,842.1 5,506.7 6,493.9 7,670.4
Earnings per Share (+24.5% Y/Y)
Economic Other Revenue 117.3 142.4 121.1 131.6 106.6
GAAP Diluted $2.39 Indicators
Earnings per Share (+42.3% Y/Y) R&D 1,128.5 1,600.3 1,724.2 2,226.2 2,430.6

Operating Income 989.6 1442.7 1746.4 1808.9 2519.0

Income Taxes 132.4 102.1 225.3 215.5 327.5

Net Income 880.5 1318.1 1456.2 1449.9 1999.9

Capitalization Total Assets 10,177.2 10,005.9 11,734.3 13,378.2 17,340.1


Indicators
Total Equity 5,995.5 5,512.7 5,694.5 5,589.9 6,524.8
All financial information prepared in accordance with US GAAP

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 19


Corporate Five Pillars of Responsibility
Responsibility
PATIENTS AND COMMUNITIES
We maintain corporate policies and practices
which support Celgenes Corporate Responsibility Celgene's mission is to improve the lives of patients around the world through our pioneering
focus, defines who we are and ensures that we patient access programs, significant investment in clinical studies, support for continuing medical
continue to maximize opportunities for patients, education and partnerships with non-profit organizations that share our commitment topatients.
our partners, employees and the environment.
Celgene governs and directs its Corporate
Responsibility efforts through the Sustainability COMMITMENT TO SAFETY
Committee (described further in the Governance
chapter) that facilitates direct involvement and We take special care to promote patients safe access to our treatments and are committed to
engagement with various stakeholders both effectively minimizing occupational and environmental risks. We strive to provide a safe, healthy
internally and externally. and environmentally responsible work environment for all employees in our operations.
Celgenes Corporate Responsibility program
aims to synchronize and drive various initiatives
in connection with sound economic, social and GOVERNANCE
environmental practices. The program also
We ensure that corporate policies and practices support appropriate governance, transparency
aims to provide awareness about key Corporate
and accountability operations. The culture at Celgene is built on integrity, ethics, sound decision-
Responsibility issues and practices to all of
making and behaviors that reflect our values and commitment to patients.
our affiliates and personnel around the world.
Our stakeholder engagement will focus on the
challenges and opportunities the company and
the people it impacts face in the future. The
GLOBAL HEALTH
overall goal of the program is to improve business
Celgene Global Health collaborates with partners around the globe to find innovative solutions for
performance while executing business practices in
healthcare challenges in the developing world to help promote long-term progress andprosperity.
a highly ethical and responsiblemanner.

ENVIRONMENT AND SUSTAINABILITY


We work to minimize the environmental impact from our business operations and promote
environmentally responsible and sustainable practices while integrating sustainability initiatives in
our day-to-day operations.

20 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


Stakeholders Through our interactions with stakeholders, we
have identified the following topics and concerns Read More about
Celgenes work to discover, develop and deliver
our therapies to treat cancer and other severe
that can impact or influence Celgenes global
operations:
OurStakeholders
diseases is accomplished by maintaining a
Expanding our therapies to treat additional The various stakeholder groups that Celgene
commitment to and dialogue with our key
areas of unmet medical needs interacts with around the world encompass
stakeholders. The stakeholders that Celgene
our efforts to enhance economic, social
actively engages with are identified based on The need for pro-patient and pro-innovation
and environmental initiatives and touch
factors related to meeting unmet medical needs public policies
upon each of the Five Pillars of Corporate
around the world and are aligned with Celgenes
Austerity and fiscal challenges Responsibility. The following chapters of
business goals, values, practices and culture. These
andopportunities this report present a summation of activities
factors include (but are not limited to):
and outcomes that occurred in 2014 and
Ethical and transparent business practices
Ability to better help the company define early 2015 that relate to these Five Pillars.
areas of unmet patient needs Broad and immediate patient access to
Some examples of these activities
medical innovation worldwide
Importance within our global focused on stakeholder engagement and
businessoperations Transformational medicines that help patients involvementinclude:
live longer, healthier and betterlives
Relevance to our current biopharmaceutical Philanthropic support and employee
operations, including management, Patient impact on healthcare systems giving for the Leukemia and Lymphoma
manufacturing and R&D andeconomies Societys Light the Night event.
Relevance to the geopolitical areas where the Impact of company innovative therapies on Celgenes global accreditation with the
company operates healthcare systems and economies CEO Cancer Gold Standard of the CEO
Ability to provide critical information, Roundtable on Cancer for promoting
concerns, advice, feedback and strategies better healthy workplaces andattitudes.
Worldwide engagement with policy
makers concerning governmental
direction on biopharmaceutical- and
medical-related regulations and policies.
Celgenes collaboration with Drugs for
Neglected Diseases initiative.
The involvement of community
stakeholders at the corporate
headquarters campus with the new
infrastructure developments.

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 21


Payers Patients and Their Families Healthcare Professionals
We strive to ensure broad access to medicines Celgenes operations, services and therapies are aimed Research and clinical trials help us
based on their value to patients, healthcare at benefiting the global patient population. We intend gain new insight into both the needs
providers and society. to create innovative therapies and services that meet the and opportunities of the global patient
Account-manager interactions health needs of patients and their families. populations.
Publications on therapeutic clinical benefits Educational material and programs Online product resources, information
and health economics and outcomes research Patient advocacy programs and groups and publications
Interaction with healthcare providers Online product resources and information Interactions at medical conferences
and patients to assist the uninsured and Celgene Patient Support resources andinformation Award research grants
underinsured

Employees Business Partners


We hold our employees to the highest standards in their The selection of business partners is based upon a
work and foster a positive work environment. number of diverse factors, including labor, ethics,
Code of Business Conduct and Ethics diversity and protection of the environment. These
Employee handbook and management interactions
OUR companies are expected to operate according to
Employee resources group STAKEHOLDERS responsible business standards and practices
Electronic newsletters and publications Audits for product quality
Employee surveys and grievance mechanisms Membership in business association, organizations
Global town hall meetings and congresses
Global corporate communications

Suppliers Stockholders Government Local Communities


We engage a wide supply Business goals include responsibly We abide by and endorse the regulatory We develop strong and lasting
chain to meet the needs achieving exceptional financial results frameworks in which we operate. Our relationships with the communities
of the company through year over year. The reporting of these various business operations and corporate where Celgene conducts its safe and
responsible and ethical successes is accurate, timely and culture are based upon ethical business responsible operations.
interactions. transparent. practices Participation in local volunteer
Supplier risk Quarterly and annual earnings Regulatory filings for therapy opportunities
assessments and communications development processes Corporate giving and sponsorship
qualifications In-person meetings Public policy discussion and direct Advertisement of local activities
Supplier audits on Internet website that contains involvement with elected representatives and community events
procurement and the Annual Report, 10-K Report at state and federal levels Communication and involvement
business management and other periodic Security and Responses to requests for information concerning business developments
Exchange Commission filings and expansions

22 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


The Patients Partners program works to meet the

Patients and needs of patients and their families by working


toward the following goals:

Communities Advancing an ongoing discussion and


exchange of information about issues
important to patients through a series of
Celgene realizes our mission of improving the lives online and in-person meetings.
of patients around the world through pioneering
Accessing the knowledge and experiences of
patient access programs, significant investment in
patient advocates to ensure that patients get The Celgene Innovation Impact award program
clinical studies, support for continuing medical
access to critical life-saving therapies. recognizes and honors patient and professional
education and partnerships with charities that
share our commitment topatients. Acting through sharing of information, organizations that show excellence in crafting
encouraging collaborations and highlighting novel, creative solutions that meet patient,
advocate programs and initiatives that caregiver and/or healthcare providers needs in
Patient Advocacy address unmet patient needs. hematology, oncology and immune-inflammatory
The Celgene Patient Advocacy program conditions. In 2014, the organizations
Patients Partners works through various activities awardedwere:
collaborates with independent patient
aimed at education and support of both patients
organizations that support and advocate on behalf Cancer101s Prescription to Learn Platform,
and patient groups, and includes:
of patients and their families. The work with these designed to help navigate patients and caregivers
groups aims to strengthen the support for patients, The Pay It Forward Program, where funding through the information overload they are often
from diagnosis to chronic treatment and end- is provided for internal capacity building and confronted with throughout the cancerjourney.
of-life care. These collaborations are critical to provides an avenue of shared knowledge and
achieving our common mission of improving the learning for necessary stakeholders. LUNGevity Foundationproposed to initiate,
lives of the people we serve around the world. design and execute a study of the benefit and risk
The Advocacy Council that supports the assessment that patients undergo when deciding
Celgenes Patients Partners is an outreach Patient Advocacy team and is represented and upon the care and/or treatment they wish to receive
program launched at the end of 2011 and has staffed by members of the community. following a lung cancerdiagnosis.
been continuing since then. Through this program, E-newsletters and webinars that provide for
Celgenes senior management meets with experts Pancreatic Cancer Action Networks Know Your
education and knowledge for patients and Tumorinitiative, designed to increase the number
on emerging issues and provides a forum for advocacy stakeholders.
sharing ideas and discussions on how Celgene and of pancreatic cancer patients participating in clinical
advocates can work together to improve the lives trials by empowering them with information that
of patients worldwide. assists with treatmentdecisions.
Celgenes commitment to support organizations
continues in 2015, and more information can be
found on our website.

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 23


The Celgene Patient Advocacy team has Patient Support Health Strategies Group has determined that
Celgene Patient Support is the #1 rated patient
recently been recognized by the independent Celgene Patient Support is a free US-based service assistance program among oncology companies.
2015 Smith Travel Accommodations Report that provides patients a dedicated, central point The following are key achievements of Celgene
(STAR) report, a syndicated research report of contact, working through multiple channels to Patient Support:
that provides benchmarking data for ensure access to Celgene medications.
biopharmaceutical companies advocacy No matter what type of insurance patients have, Four out of five patients who request our
efforts and better understanding of advocacy Patient Support helps them access the Celgene help receive their Celgene medication
and policy initiatives. Celgenes recognition in therapies their physicians have prescribed. Each More than $750 million in free medications
the 2015 STAR report includes: Celgene Patient Support specialist is assigned to a has been provided since 2007
#1 ranking in Hematology advocacy for physicians office across the entire US in order to
More than 50,000 patients have received
the third year in a row provide personal and direct support from a single
assistance since 2007
source. Our assistance services include a full range
An overall ranking of #8 across all of programs that helpto: Fast Track for First Prescription, a program
therapeutic advocacy designed to help patients receive their first
Reduce co-pay responsibility to $25 or less
#1 ranking in corporate image prescription faster, was launched in 2012
for eligible patients
For more information, visit
Connect Medicare patients with third-party
A flagship program that Celgene has continued www.celgenepatientsupport.com.
organizations to help with the cost of their
to lead in is the Metastatic Breast Cancer Alliance Celgene medicine
(MBC Alliance). The Alliance aims to unify
Locate financial assistance for transportation
efforts of its members to increase awareness and
costs through third-party organizations
education while advancing research and policy
around breast cancer. The formation and direction Assess a patients eligibility for Medicaid and/
for the Alliances work was led by Celgene, or alternative coverage if no coverageexists
including providing resources and knowledge for
patients that the Alliance assists. The companys
contribution also involved developing the basic
concept of the Alliances mission and goals, finding
a permanent residence for the Alliance at the
Avon Foundation for Women and incorporating
advocacy groups and interested business partners
into the various activities supported by the Alliance.
More information on the Alliance can be found at
www.mbcalliance.org.

24 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


Across Europe, Celgene provides support to
European Patient organizations and initiatives that make a positive Common Way
GroupSupport impact on patients, communities and the world.
Support for patient organizations in Europe is The Nationwide Association for CML
the responsibility of local Celgene affiliates in (chronic myeloid leukemia) Patients Help,
the countries where the patient organizations together with the Cartia Foundation,
Italy are based. This support includes grants for founded the educational project Common
$309,000 educational events, funding for attendance at Way to address multiple myeloma and
patient workshops and conferences, development chronic myeloid leukemia for patients in
Poland
of patient information materials, sponsorships and Poland. The aim of this project is to educate
$577,000
donations for various activities for patients and and support patients coping with these rare
patient organizations. diseases and integrate the community of
blood cancer patients within the country.
Some notable European activities that occurred in
2014 with Celgenes support include:
Pan European
$644,000 A grant to support membership development
across Europe and support for patient and
2014 Support family seminars across 11 countries totaling
$3,175,000 more than $200,000.
$80,000 support for the Multiple Myeloma
2013 Support National Day tours in several towns in Celgenes financial support of Common Way
$2,270,000 UK & Ireland France. exceeded $488,000. This funding supported
$700,000 nationwide meetings and seminars in
$180,000 grant for Multiple Myeloma
UK for support, education and research major Polish cities and the creation of the
Nordics programs. Common Way webpage as a portal for
$127,000 information and assistance.
$160,000 in total support for the Italian
Germany
$116,000 Association against Leukemia, Lymphoma
France and Myeloma.
Other $224,000 Grant support of $63,000 for
$479,000 Blodcancerfrbundet (Blood Cancer
Federation) in Sweden.
Donation and grant support of $68,000 for
Other includes: Austria, Belgium, Bosnia, Croatia,
Czech Republic, Estonia, Greece, Hungary, Lithuania, Leukemia Help Rhine-Main geV in Germany.
Macedonia, Portugal, Russia, Serbia, Slovakia, Slovenia,
Spain, Switzerland andTurkey

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 25


Community Volunteering Celgene community projects in the UK included
the following: On Assignment in Nepal
Celgene is committed to creating a positive impact
in the global communities where our employees 2014At Hillingdon Hospital, a group of
On April 25, 2015, a 7.6 magnitude
and the patients we serve live and work. Some of Celgene volunteers were responsible for
earthquake struck Nepal, resulting in
the community initiatives and projects that our cleaning and readying a garden to be used by
major destruction throughout the country.
employees have participated ininclude: physiotherapy patients and their friends and
A global request for assistance was made
families for summer barbecues and outdoor
Leukemia and Lymphoma Society Light The and set ISAR (International Search and
activities. Another volunteer day was at
Night participation at more than 20 events in Rescue) teams into action. ISAR Germany,
Chiltern House, a home that provides a wide
2014 including Celgenes Birgit Ostendorf of the
range of services for adults with physical
Sales department, quickly rushed to the aid
National food drives at each Celgene site in disabilities. Activities included decorating
of the people in the disaster area to help
conjunction with Feeding America Christmas trees that are sold at the Christmas
find people trapped under the rubble and to
Fayre and performing hands-on upkeep in
Participation in the first Science Saturday at provide medical care.
and around the House.
Rockefeller University, a STEM event
2013Teams of Celgene volunteers assisted
Volunteering for Stop Hunger Now where The Dogs Trust with clearing area for dogs
over 30,000 meals were packaged for hungry to play and socializing with abandoned
children around the world canines. At Ruislip Woods, a nature reserve in
We Care because were Celgene was the Hillingdon, teams cleared areas of dead wood
first Social Responsibility Program and was while learning about the process to make coal
initiated by our UK affiliate in September 2013. from wood resources.
As part of this program, Celgene employees 2012At the Maple Lodge Conservation
in the UK participated in various Community Society in Rickmansworth, Celgene volunteers
Action Days, benefitting various non-profits and created a ramp for wheelchair access and built
communitypartners. fences and walls to prevent attrition of the With her certified rescue Labrador Retriever
natural environment. Cooper, the team searched collapsed
temples at a World Heritage Site and other
In The Netherlands, Celgene employees spent a buildings in Kathmandu and Gorkhan.
day at the nursing home De Miente where they Birgit functioned as both a dog handler
fulfilled small simple requests from residents, for locating people trapped under rubble
including going for walks, shopping, music and as support for the medical team. The
workshops and excursions. The volunteers also team provided medical assistance where
provided a better home for the goats the residents necessary and search and recovery support
keep in a nearby meadow and performed upkeep at other locations, as well as other types of
duties on the facility garden. assistance where directed.

26 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


The Celgene Spain affiliate used the We Care The Spanish affiliate is creating employee
because were Celgene program to embark athletic teams that are sponsored and
on a multitude of social and charity activities supported by company funds and fundraising.
that involve employees action, passion and The affiliates committed to donating funds
commitment.In 2014, these activitiesincluded: to Fundacion Adapta2 (Private Foundation
for the Promotion of Adapted Athlete) for
Celgene funded the Smile Week on behalf of
every kilometer completed by employees in
the Theodora Foundation, which included
races and events. Several such events included
visits of a Smile Doctor in hospitals
the Race Against Cancer, which benefits the
accompanied by a Celgene employee.
Spanish Association Against Cancer, and the
Locations of these 16 hospitals included
Race for Women in Madrid, which benefits
Madrid, Catalua, Andalucia, Galicia,
Celgene has donated activity and entertainment the Foundation Against Cancer.
Canarias, Toledo, Santander and Vizcaya.
equipment to the Oncology Unit of the
At a Story Telling Contest, employees Child Jesus Hospital in Madrid on behalf of
read stories to children at hospitals with Fundacion Aladina. The adolescents within the
participants competing at the regional and unit also received different thematic workshops
national level for best presentation. The jury (drawing, music, theater, etc.) that included
for the contest was made up of the children, Celgene volunteers.
the Smile Doctor Sonrisa and physicians at
Employees supported the Amigos de los
the hospitals.
Mayores (Friends of the Elderly Foundation)
by volunteering their time to accompany
seniors during the International Day of
Older Persons (October 1). Additionally,
the employees raised awareness through
various events in Madrid on how to alleviate
loneliness and isolation of elderly people.

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 27


World Pancreatic Cancer Day
Celgene joined forces with leading international
patient advocacy groups for the first-ever World
Pancreatic Cancer Day (WPCD) on November
13, 2014. This included participation from
29 patient advocacy organizations from the
US, Canada, Europe, Latin America, Australia
and Japan. The main goal of WPCD is to raise
the general publics awareness of how deadly
pancreatic cancer is and provide a call to action
for more education and research.
To highlight the dire need for more awareness, Celgene spread the word about this day through
Celgene released results from a Global Pancreatic various avenues and a multi-country effort to Celgene Boudry employees created a video
Cancer Awareness Omnibus Survey of more than ensure broad awareness of WPCD and the survey that was distributed online and through
7,000 adults in the US and Europe. The survey to internal and external stakeholders,including: social media to raise awareness of WPCD
was conducted in early 2014 and was designed and pancreatic cancer. Professor Eric
Creating new communications through press
to assess the level of awareness and knowledge Raymond, head of Medical Oncology
releases on numerous online outlets and on
about pancreatic cancer, the degree of interest in Service at the University Hospital of
Pinterest, Twitter, LinkedIn and Celgenes
learning more about this deadly cancer and the Lausanne, was a guest speaker at Boudry
publicwebsite.
level of support for expanded research efforts. and discussed pancreatic cancer impacts on
Key findings from the survey, which can be Joining the Thunderclap campaign for society and prescribed existing treatments
found here, include: WPCD, where people and organizations sign and future outlooks on cancer research.
on to automatically send the same social
Despite being the fourth leading cause of
media message at one time through their
cancer deaths, pancreatic cancer is virtually
social media channels. 2,014 people signed
unknown by many in Europe and US
up to the campaign with a social reach of
About 70 percent of respondents 1,173,872people.
indicated they would be extremely/very
supportive of a public awareness campaign
supporting more public education about
pancreaticcancer.
About half of all respondents indicated
they would take action to support public
awareness and education.
Professor Eric Raymond

28 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


World Pancreatic Cancer Day
A call to action on pancreatic cancer was Various publicity activities occurred
publicly launched for WPCD. Celgene throughout the Nordic regions, including
sponsored a public event organized in an informational flyer handout at the
the European Parliament where speakers, Central Station in Copenhagen and
including Antoni Montserrat (European posters exhibited at area hospitals.
Commission), Francesco de Lorenzo
In the US, more than 1,000 online news
(European Cancer Patient Coalition),
outlets ran Celgenes press release and it
Matthias Lhr (Karolinska Institute,
made 31.6 million impressions in online
Sweden), Philippe De Backer (Member
views or other appearances in media.
of European Parliament (MEP)) and
Franoise Grossette (MEP) shared Other awareness and publicity activities
their views on pancreatic cancers key occurred at our affiliates in Belgium,
challenges from awareness to diagnosis France, Greece, Germany, Poland,
and care. Portugal, Russia, Slovakia, Slovenia,
Spain and Turkey.
In Italy, an institutional meeting on
WPCD was organized by Insieme Contro For more information on activities around the
il Cancro (Together Against Cancer world and to get involved, please visit
Foundation) with the support of Celgene www.worldpancreaticcancerday.org.
at the Chamber of Deputies in Rome
that included patients, oncologists,
general practitioners, public officials and
journalists to raise awareness, find points
of discussion and develop future
perspectives. Other newswire and
internet publicity efforts reached an
audience of over 6.1 million.

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 29


Education
As a company that is always looking to innovate, More than 750 post-doctoral fellows have
Celgene continuously seeks to increase our completed the RPIF Program at Celgene and
employee population with individuals who share other New Jersey-based pharmaceutical and
that same dedication. We are also committed to biopharmaceutical companies, and 28 alumni of
education throughout the communities where we the program are currently employed at Celgene.
operate and live.
Celgene is a four-year member of Change the
The Sol J. Barer Scholarship in Life Sciences, Equation, a collaboration between education
named after Celgenes former Chairman and Chief and business that aims to ensure that all students
Executive Officer, assists students recognized are Science, Technology, Engineering and Math
as superior academic performers and who are (STEM) literate. Change the Equations members
preparing for careers in the life sciences industries. actively take part in advocating STEM policies Some of the Rutgers
The five scholarships are available through the and practices across the US Another STEM
Independent College Fund of New Jersey. program that Celgene supports and actively
Pharmaceutical Industry
participates in is the Governors School in New Fellowship alumni currently
Another example of facilitating development
of local emerging life sciences professionals is
Jersey. This initiative provides funding for employed at Celgene
workshops, seminars and various opportunities
our participation in the Rutgers Pharmaceutical
within the STEM fields for more than 50 students
Industry Fellowship (RPIF) Program. In
a year.
collaboration with the Ernest Mario School of
Pharmacy, a two-year post-doctoral fellowship Celgene has continued its support for the
is offered in Celgenes four primary therapeutic Entrepreneurs in Clinical Academia (ECA)
areas, giving fellows the opportunity to rotate initiative, part of the Federation of Clinical
through various disciplines. The goal of the Immunology Societies. ECA offers medical
two-year Global Medical Affairs Fellowship academics in Europe the ability to learn more
is to provide real-world, hands-on experience about the drug development process and to
within the traditional functional areas of the understand the value of innovative research
Medical Affairs department, including Global from the laboratory to the marketplace. This
Medical Information and Global Scientific course is delivered by INSEAD, a globally
Communications. The Global Clinical Research renowned business school, and is supported by an
and Development Fellowship focuses on the educational grant fromCelgene.
science and strategy of drug development and
global clinical studies.

30 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


Corporate Giving Support for Non-Profit Patient and Celgene encourages its employees in the US to
Professional Advocacy Organizations create teams and actively fundraise for their local
Light The Night and Purple Strides events. If an
Civic and Philanthropic Support Quest for CURES, a new collaborative initiative
employee raises a minimum of $100, Celgene
between Celgene and the Leukemia and
Celgene civic and philanthropic support is matches the first $100. Participating in events like
Lymphoma Society (LLS), aims to find cures
focused on humanitarian and social programs, this is a great morale booster and team-building
and treatment paradigms for hematological
science education and community giving. Celgene activity for employees and a way for them to
malignancies through ground-breaking research.
continues to be receptive to strategic corporate make meaningful impacts in their communities
This includes focus areas for non-Hodgkins
giving and contributions, which may be made in and strengthen connections with the patient
lymphoma, chronic lymphocytic leukemia and
response to a funding request or proactively at the advocacy community.
pre-malignant conditions. In 2014, Celgene
discretion of the company.
awarded 14 winners in the inaugural round of In the UK, charitable support was structured for
Celgenes employee giving program includes a grant funding. These projects will, if successful, 12 charities:
unique partnership between Community Health have measurable impacts on the diagnosis and Breast Cancer Care
Charities and the United Way. The program treatment of patients over the next 510 years.
provides employees with the opportunity to Leukemia and Lymphoma Research
Celgene has initiated a strategic matching
support both health-related organizations and Myeloma UK
program for employee engagement, beginning
community initiatives through payroll deduction
with two signature initiatives. Through support Myeloma Ireland
and other giving channels.
of LLSs Light The Night event and the Pancreatic
More information on Celgenes charitable Cancer Action Networks Purple Strides campaign, MDS UK Patient Support Group
and philanthropic contributions as well as the the company is magnifying the significant impact National Rheumatoid Arthritis Society
application process for funding requests can be its employees are making on research for critical
found at our website. Pancreatic Cancer UK
cancers. Plans are underway in 2015 to add a
third signature initiative in the area of I&I and the Pancreatic Cancer Action
Medical Education for company will consider additional programs on a
The Psoriasis Association
HealthcareProfessionals regularbasis.
The Irish Skin Foundation
Celgene considers making grants in support of
accredited or non-accredited medical education Leukemia Care
for healthcare professionals via live programs World Child Cancer
or enduring materials. Medical educational
grants are awarded in support of high-quality,
independent educational programs and materials,
which demonstrate the potential to improve
patient care and health outcomes. Supported
programs must be independent, objective,
balanced and scientifically rigorous.

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 31


Leukemia & Lymphoma Society Light the Night
For the fifth year in a row, the Celgene
community pledged increasing support for
the LLS Light The Night 2014 campaign,
collecting another record amount of
donations. Over 1,700 Celgene employees,
friends and family walked to help LLS raise
funds to fight cancer. Across the US, Celgene
offices in Summit, Overland Park, San
Diego, San Francisco, Phoenix and Boston
participated, and more than 65 teams at
these locations participated as part of Team
Celgene.
Celgenes fundraising exceeded $500,000,
representing a 129 percent increase from
2013 levels. As a national sponsor for the
event, Celgene made a direct donation
of $150,000. Celgene is now the #1
biopharmaceutical partner and #3 national
partner of this event. Since becoming a
national sponsor in 2010, Celgene has raised
more than $1 million for Light The Night.
Corporate support has helped LLS continue
major advances toward cures for blood
cancer. Since 1949, LLS has invested
morethan $1 billion, supporting some of the
best researchers in the world and helping to
achieve dramatic increases in the survival
rates for both childhood and adult leukemias.

32 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


There were numerous notable events in 2014
that Celgene employees participated in to raise For the second year in a row, Celgene Canada Eric Gelbers Run for MMRF
funds to fight multiple myeloma, pancreatic took part in the 140-mile Dfi Cyclo-myelome
cancer, lymphoma and other types of cancer. The bike ride and raised just under $30,000 to Celgene lap captains volunteered their
following describe some of these events. benefit the Myeloma Canada Chair of the time and energy to run with businessman
University of Montreal at the Maisonneuve- and ultra-marathoner Eric Gelber during
Rosemont Hospital. his 200-mile run around New York Citys
For the first time, Celgene sponsored a team
for the Century for the Cure ride that benefits Central Park.
research at Rutgers Cancer Institute of New
Jersey. The team was made up of employees
and their friends and family that raised a total
of $6,450 to benefit cancer research. Several
of the riders tackled the 100-mile course,
while the other members did the metric
century, riding 62.5 miles.

The 56 hours it took to run 33 laps of the


A team of employees from the Celgene 6.1-mile outer loop raised funds to advance
Boudry facility participated in the Broye research and awareness for the Multiple
21600 indoor cycling marathon event that Myeloma Research Foundation (MMRF).
raised more than $12,000 for the Broye Although an injury prevented Eric from
Foundation and the Foundation for Research completing all 200 miles of his goal, he and
on Cancer of the Child. the 33 lap captains ran a total of 176 miles
Miniori-kai, a care center for the mentally and and raised a total of $205,000 for MMRF.
physically disabled, lost their facility in the
Miyagi prefecture during the 2011 tsunami
and earthquake. During their move into a new
building in 2013, Celgene Japan provided the
new facility with donated furniture, and in
2014 provided financial donations and holiday
decorations. Celgene also provides financial
support to Shimada-ryoiku-en, a home for the
handicapped in Tokyo.

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 33


Celgene UK employee teams used their In the UK, Celgene employees jointly
skills and talents as part of the WeCare fundraised for the Macmillan Cancer Support
50 Challenge. This annual event aimed to organization and the Psoriasis Association
challenge the teams to invest 50 to generate through the annual Worlds Biggest Coffee
a larger return in 2014 and 2015. All monies Morning held every September. Additional
raised were donated to five selected charities. fundraising occurred for Cancer Research UK
Employees developed some inventive and during Stand Up To Cancer month in October
interactive activities including raffles, cake- through daily and various fundraising events.
baking, cookery book-writing and 24-hour
spinning. In total, the affiliate exceeded the
annual fund-raising target and raised over For the third year in a row, Celgene employees Eighty Celgene employees and family members
15,500 (approximately $23,000). participated in the annual Empire State participated in the Kosice Peace Marathon in
Building Run-Up to benefit the MMRF. The Kosice, Slovakia, which is the oldest marathon
Celgene group raised more than $21,000, in Europe. The marathon, half marathon and
In December, Celgene Italy supported making it the top fundraising healthcare mini marathons benefit the League Against
fundraising efforts for Banco Farmaceutico company at the event, as well as earning the Cancer and other patient associations.
Fondazione Onlus that assists welfare charities. Fastest Team in the Pharma Cup.
Celgene volunteers helped by selling traditional
Italian treats and distributing pamphlets Celgene was the title sponsor of the
about the foundation. Donations were used to eighth annual Survivor Beach Stand-Up
purchase and supply drugs for people in need Paddleboarding Festival in San Diego,
and additional welfare charities. California. Celgene employees and family,
cancer survivors, caregivers, supporters and
competitors participated to raise awareness
and funds for cancer research at the
University of California San Diego Moores
Cancer Center.

34 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


The most critical part of our labeling effort is
Commitment conveying how to safely access our therapies, and
includes:
toSafety Approved indication for such therapy
Therapy description and information
At Celgene, we take special care to provide
patients safe access to our treatments. We have Therapy clinical pharmacology
developed unique, industry-leading programs
Functions and mechanisms
under which hundreds of thousands of patients
worldwide have accessed the clinical benefits of Dosage quantity
our therapies. Proper administration of therapy
Warnings and precautions
Patient Safety Our experts continuously implement strategies
Adverse reaction information and explore new technological developments to
Celgene has been a leader in effective safety deter counterfeiting. We also address product
surveillance systems as a component of its broader Therapy interactions
integrity issues by putting business practices
risk management programs. The safety of the Use in specific patient populations in place designed to ensure that Celgene
patients we serve is of paramount importance. therapies are securely distributed within our
Supply of therapy and proper storage
Our products are marketed and distributed with authorizedmarkets.
thorough labeling and product information. Counterfeiting medicines is a serious criminal
Celgene works closely with regulatory bodies,
Celgene develops labeling and informational offense and a growing public health risk.
law enforcement agencies, our industry peers and
material in compliance with regulatory bodies Counterfeit medicines may be too strong or too
consumer protection authorities worldwide to
such as the US Food and Drug Administration weak, missing key ingredients or even made with
strengthen, enact and enforce anti-counterfeiting
(FDA) and the European Medicines Agency. dangerous contaminants that can lead to serious
laws as well as raise awareness of counterfeiting.
health issues. When patients consume medicine
All therapies currently marketed by Celgene are Celgene also supports law enforcement and
that is a fake or counterfeit, trust in the quality
required to include labeling approved by the industry initiatives to combat counterfeiting.
of medicines is destroyed and hope for successful
applicable regulatory bodies. Celgenes Regulatory In 2013, Celgene and 28 of the worlds largest
treatment of their disease is undermined. Celgene
Affairs Department is charged with enforcing pharmaceutical and biopharmaceutical companies
believes there is no higher priority than providing
the policies related to the labeling of marketed partnered with INTERPOL to take action against
patients genuine, safe and effective medicines. It
products. It is Celgenes policy to maintain an the manufacturers and distributors of counterfeit
is because of this strong commitment to patient
internal Celgene Product Labeling Portal that medicines. In addition, Celgene remains deeply
safety that Celgene takes deliberate, sustained and
provides access to current labeling worldwide engaged through the Pharmaceutical Security
proactive steps to strictly enforce the quality and
as well as access to labeling for products on our Institute and similar organizations to prevent
safety of our treatments.
external website. all types of pharmaceutical crime, including
counterfeiting, theft and diversion.

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 35


Risk Minimization process has three stages that are interrelated. Teratogenicity, the development of physiological
First, the safety profile of the medicinal product abnormalities or fetal malformation, is a well
andManagement is characterized, including what is known and identified risk for Celgene products REVLIMID,
Celgene is a world leader in pioneering risk what is not known. Second, pharmacovigilance THALOMID and POMALYST. In order to
minimization techniques to deliver safe use of activities are planned as a key component of minimize and mitigate this risk, global pregnancy
medicinal products. The Global Risk Management effective therapy regulation, clinical practices prevention programs (PPPs) are in place with the
Oversight Committee (GRMOC) works to and public health programs. These activities are overall aim of preventing the risk of embryo-fetal
minimize risks related to any of our commercial or used to characterize risks, identify new risks and exposure to these products. A secondary goal
development products are identified, assessed and increase knowledge about the safety profile of of the PPP is to inform prescribers, patients and
managed effectively. The GRMOC is responsible therapies. Third, once the risk minimization and pharmacists about the serious risks and safe-use
for directing our corporate risk management mitigation planning and implementation occurs, conditions for these products. PPP standards
strategy and approving all Risk Management the effectiveness of these activities is assessed. to mitigate these risks are implemented in each
Plans (RMPs) for both commercially authorized country where these products are available
For risk management activities conducted in the
and developmental products. The GRMOC through clinical studies or commercialization. The
US through our Risk Evaluation and Mitigation
operates across functional heads with standing program design is adapted to the local regulatory
Strategy (REMS) programs, Celgene introduced
members comprising Celgenes Chief Medical and healthcare system environment. Celgene is
a number of innovative features to support
Officer, Regulatory Affairs, Global Drug Safety one of the leaders in developing effective RMPs
prescribers, pharmacies and patients. Upgrades to
and Risk Management, Medical Affairs, Legal, and our programs worldwide have been effective
our internal call center technologies reduced the
Clinical Research and Development and US Risk in mitigating the risk of embryo-fetal exposure.
time taken to complete REMS enrollments and
Management Strategies. The GRMOC is chaired surveys, and the successful launch of a pharmacy
by the Global Drug Safety & Risk Management web portal has resulted in more than 80 percent
(GDSRM) Head of Global RiskManagement. of all Celgene pharmacy
The GDSRM department is involved in every REMS tasks being
step of the clinical development processfrom fulfilled online. We have
inception to marketingmaking sure Celgenes an unrelenting passion
therapies are safe and patients are well informed. to provide world-class
GDSRM personnel are embedded within clinical customer service to those
development and project teams to increase completing Celgene
continuity of safety assessment at every stage from REMS tasks, and in 2015
pre- to post-marketing. we launched additional
innovative technologies,
Celgene currently has a unique and comprehensive
such as a REMS mobile
RMP for each product, including a risk mitigation
application, to achieve
strategy. The overall aim of risk management is to
thisgoal.
confirm that the benefits of a particular product
outweigh the risks by the greatest achievable
margin for the patient. This risk management

36 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


Employee Safety
Global EHS Mission
At Celgene, our employees are our most important
resource. We strive to provide a safe, healthy and Celgene is committed to global leadership
environmentally responsible work environment in our EHS programs in order to effectively
for our employees and visitors to our facilities. minimize occupational and environmental
We are dedicated to worldwide leadership in risks. We will strive to provide a safe,
our Global Environmental, Health and Safety healthy and environmentally responsible
(EHS) programs in order to effectively minimize work environment for all employees and
occupational and environmental risks. We ensure visitors to our facilities.
the health and safety of all employees so we can
maintain this extraordinary level of commitment Integrate environmental, health and
and continue to attract the best employees at safety objectives and targets into our
every level of ourorganization. business strategies and plans.

Celgene monitors, tracks and routinely reports Comply with environmental, health
on the companys health and safety performance, and safety laws, regulations, standards
and continually reviews risks to better protect and ordinances in each of the countries
our people. This is particularly important for in which we do business.
personnel who are involved in occupational Educate employees with respect
activities where there is a high incidence or risk to environmental, health and safety
of diseases, such as laboratory staff that handle Act responsibly and communicate openly
performance and provide training
a myriad of chemicals and biological material with our customers, neighbors, employees,
to assist employees in performing
and facility personnel that perform various government officials and other stakeholders
theirresponsibilities.
operations throughout the facilities that could relative to the safety profile of our products
involve harmful material and substances. For Strive for an injury-free and and operations.
these employees, there are educational, counseling, environmentally sustainable workplace by
Foster environmental, health and safety
prevention and risk training, and, if necessary, building on the belief that incidents, injuries
ethics among management by setting
treatment programs available with a focus on and environmental releases are potentially
management performance targets into our
potential seriousdiseases. preventable and by implementing
business strategies.
appropriate risk controlmeasures.

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 37


EHS key initiatives have helped create a culture To enhance the EHS culture, management systems Early reporting of any unsafe conditions or
that encourages staff to do the right thing and focus on the highest potential safety risks to potential hazards is highly encouraged as earlier
feel empowered to report and correct any safety staff in our R&D, manufacturing, field and reporting consistently generates less severe
incidents as well as unsafe conditions and administrative offices. outcomes, a trend that is reflected in our low
behaviors. Some key global EHS initiatives in ratios of Lost Day Case Rate.
2014 included:
Process Safety Integrate requirements early US Safety Metrics
on in the technology transfer process of both
manufacturing and R&D processes. 0.70
Hazard Prevention Minimize risk through 0.60
hazard prevention awareness, comprehensive

100 Employees
0.50

Quantity per
training and accident/ incident management Injury & Illness Rate
0.40
and follow up.
Occup. Disease Rate
0.30
Biosafety Focus on biosafety in the
manufacturing arena and cultivate a proactive 0.20 Lost Day Case Rate
view to mitigating risk. 0.10
Health and Safety Training Provide required 0.00
training cross-functionally on a global basis. 2011 2012 2013 2014
Continue to heighten EHS awareness with
programs that fit the needs of the business
based on identified risks.
US Safety Metrics 2011 2012 2013 2014
Injury/Illness/Incident Management
Proactively manage risk. Conduct root cause Injury and Illness Rate1 (Per 100 Employees) 0.54 0.44 0.62 0.56
analysis. Encourage reporting and correction
of near misses. Occupational Disease Rate (Per 100 Employees) 0.00 0.04 0.11 0.02
Lost Day Case Rate2 (Per 100 Employees) 0.19 0.14 0.10 0.14
Ergonomics Provide a global program
while focusing on regional requirements and Ergonomic Injury Cases 13 9 19 3
regulations and risk management.
Fatalities 0 0 0 0
Data is from all US manufacturing, R&D, warehouse, distribution centers, office buildings and field employees
The data do not include any international (Europe and Japan) data.
1
Injury and illnesses beyond first aid
2
Rate is based on number of injury and illness cases with days away from work

38 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


In 2014, Celgene adopted a robust Ergonomics
program and made it available to all employees
and directly supervised contractors. Ergonomics is
the applied science of fitting the task to the worker
to maximize productivity while reducing operator
discomfort, fatigue and injury. The goal of this
program is to fit work environments to personnel
to make jobs safer, more comfortable and more
efficient. We provide workers with practical
ergonomic information on work techniques,
equipment, injury prevention andexercises. As our
Ergonomic program has matured, we have seen a
significant reduction in ergonomic injuries.
In Boudry and other Swiss facilities, priorities
have focused on emergency preparedness and
associated response plans, improvement of
medical support and providing assistance to other
departments at Swiss facilities. This includes
providing EHS support to the Celgene Chemicals
operation in Zofingen. In 2014, all colleagues
Ergonomic information sheets
from these facilities were involved in the were used as a pivotal part of Cardinal Rules
implementation of and trained on five Cardinal theErgonomics program
Rules that promote safe behavior and avoidance #1 We know the required Personal
of injuries and/or property damage. Protection Equipment (PPE) and use
them consistently

#2 We perform work only after we have


completed the required safetytraining

#3 We safeguard against falling down when


working above 2 meters

#4 Before starting any maintenance work


we lock out the system and secure it

New emergency information plans #5 We do not tolerate removal,


manipulation or by-passing of
for the Swiss facilities safetydevices

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 39


Employee Wellness Health Programs
We lead by example in the US by
CEO Cancer Gold Standard
Investment in our employees extends to their
health and well-being, and as such Celgene implementing oral oncology co-pay parity
In December 2014, Celgene became one of
offers a myriad of readily available healthy living and low cost-sharing for cancer treatments
only three biopharmaceutical companies
programs, services and educationalopportunities. and other prescription drugs for our
to earn the CEO Cancer Gold Standard
employees
accreditation in the US as well as globally.
Food and Exercise Programs Blood pressure screenings This award recognizes our commitment
National flu vaccinations to cancer prevention, early detection and
Food For Thought initiative that champions
treatment for our employees around the
nutrition and healthy eating options at Benefits plans that offers US employees and world. The Gold Standard provides an
facilitycafeterias their dependents access to quality healthcare easy-to-follow framework for employers
Health club reimbursement available to and include no- to low-cost tobacco cessation of all sizes, from any industry, to make a
eligible employees in the US and Europe. treatments difference in the health of their employees
Fitness centers available at select Wellness incentives for annual exam, and families. To achieve Gold Standard status
Celgenefacilities colonoscopy, mammography, healthy numbers employers must examine and evaluate their
and healthy pregnancy, healthy babies commitment to the health of their employees,
Healthy food alternatives provided in take definitive actions to ensure health and
workspaces and at meetings Onsite mammography screenings at Celgene wellness in the workplace and reduce cancer
facilities in New Jersey risks in the workplace.
Weight Watchers at Work program
Access to the Quit for Life Program from The Gold Standard is overseen by the CEO
National webinars that focus on various
the American Cancer Society that helps Roundtable on Cancer, a nonprofit agency
topics including organic foods, healthy heart
participants gain knowledge, skills and made up of CEOs that was founded by
programs, stress reduction and the flu season
behavior strategies to quit smoking for life former President George H. W. Bush and was
Meetings in Europe accompanied by active through customized plans and a supportive created in collaboration with the National
team-building activities online community Cancer Institute, leading cancer centers and
Support (education or monetary) for Annual US health fairs that include free prominent health organizations.
employees that participate in running, cycling health screening and assessments, educational
and other sporting events resources and in-person representatives
from various health-related departments and
Support for soccer, softball and other teams
areasocieties
of employees that participate in local and
community sporting leagues

40 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


Health and wellness are addressed in the UK A mandatory program for all of the field-based
through monthly events that focus on safety and and long-distance drivers in the UK is Advanced Smoke and Tobacco Free
balancing work with personal life. These include
a New Year Resolution Health-check Summer
Driver Training. This training is used to enhance
skills and training in defensive and fuel-efficient
Environments
Awareness activities and events to coincide with driving techniques and a systematic approach to One of the important pillars of the CEO
national campaigns, such as Breast and Prostate tackling hazards. The program also reviews how Cancer Gold Standard (see previous page) is
Cancer Awareness months. Celgene field teams are to properly review vehicles, road conditions and tobacco cessation in the workplace. Tobacco
provided mailings on these various initiatives as traffic patterns and conditions. use is one of the leading preventable causes
well and all employees receive gifts and incentives of premature death and disease. Currently,
for healthier living, including pedometers, reusable approximately 5.4million people worldwide
water bottles and kits for cleaning work and die each year due to tobacco-related
personal spaces. illnessesa figure expected to increase to
In addition, work-life balance is a primary more than 8 million a year by2030.
focus in the UK to ensure that our employees To support a healthy work environment for
manage time effectively and create a non-stressful all of our employees, contractors and visitors,
work environment. The Resilience Workshop all global Celgene campuses and facilities
encourages and helps our employees create have become tobacco-free environments.
this balance via education on how to respond
to stress and discuss best practices and proper
Employee in the gym at the The Smoke & Tobacco-Free Environment
Policy prohibits the use of tobacco products
collaboration in a team environment. Through Celgene Poland facility
at all company locations, including property,
this ongoing Workshop, we aim to create resilient buildings, leased buildings, company vehicles
and proactive employees and feedback is used to and company-sponsored meetings. There are
determine how to constantly improve the no designated smoking areas, since no level
work-life balance for our employee population of tobacco use is considered to be safe. In
on individual and team levels. Work-life balance addition, Celgene provides access to coverage
was also discussed in the Culture Enquiry, a group of over-the-counter smoking cessation
discussion and collaboration on setting a clear and products and online smoking cessation
concise mindset for the culture employees desire programs for US and Canadafacilities.
in the workplace. The discussions also focus on
proper communication, work-place environments,
codes of conduct and other related topics.

The Europe, Middle East and Africa (EMEA) soccer tournament was a sporting initiative
that promoted bothwellness and charitable giving (see Global Health chapter)

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 41


The Audit Committee monitors the integrity
Governance of financial reporting processes and systems
of internal controls regarding finance,
Expansion in Summit, NJ
accounting and legal compliance. It also Celgene entered into an agreement in July
Celgene Corporation is proactive in specifying
monitors the independence and performance 2015 to buy the former Merck facility
that its policies and practices support strong
of the companys independent auditors and that is located two miles from corporate
corporate governance, transparency and
provides an avenue of communication among headquarters in Summit, New Jersey. The
accountability, and are built on integrity, ethics,
the independent auditors and the Board campus has 12 buildings that include R&D
sound decision-making and behaviors that reflect
ofDirectors. facilities, laboratory and support buildings,
our values and commitment to patients.
storage, manufacturing capabilities,
The Management Compensation and
warehouses and administrative offices. The
Development Committee is responsible for
Company Leadership assisting the Board in the discharge of its
site has approximately 850,000 square feet
of administrative office space and 450,000
The Board of Directors is the highest governing responsibilities relating to compensation
square feet of R&D space.
body and is responsible for oversight of the of executive officers and producing the
business and affairs of Celgene, its long-term Compensation Report to stockholders. This The acquisition of this property complements
strategy, objectives and risk management. The committee reviews, evaluates and approves our expansion at the corporate headquarters
Board is responsible for reviewing, evaluating and the companys compensation plans for in order to bring most of the New Jersey
approving major corporate actions, overseeing the CEO and other officers to increase workforce into Summit, in addition to having
managements efforts to establish and maintain competitiveness and alignment with the better access to mass transportation. This close
appropriate standards of legal and ethical conduct companys compensation philosophy. proximity for our workforce will enhance
and providing oversight for senior management. productivity and connectivity as we work to
The identification and consideration of
develop new therapies for patients in need.
Celgenes Corporate Governance Principles qualified individuals and candidates to
provide the framework for the governance of become Board members is the responsibility The agreement closed in October 2015,
the company and assist the Board in exercising of the Nominating, Governance and with occupation and transition from other
its responsibilities. These principles reflect Compliance Committee. This committee facilities in New Jersey beginning in the fourth
the Boards commitment to monitoring the considers all factors it deems appropriate for quarter and continuing through the next one
effectiveness of policy and decision making the nomination process, such as competencies, to two years.
both at the Board and the management level, familiarity with the biopharmaceutical
with a goal to maximize stockholder value over industry, governance experience and other
the long term. Stockholders are encouraged to commitments. This committee also oversees
direct all communications with the Board or any the periodic evaluation of the performance of
Board member to the Corporate Secretary at the the Board and its committees, including itself.
corporate headquarters.

42 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


Sustainability Governance The approved policies, actions and strategies The Sustainability Committee reviews these
from the Committee are delegated to respective potential risks and necessary actions to account
The Sustainability Committee is Celgenes cross- departments to execute them. Employees are for them in our business strategies. Environmental
departmental leadership group that is responsible informed through internal communications risk is reviewed annually during the formation of
for decision making on corporate responsibility- and, depending upon the department, are also our disclosure to the CDP; social risk items and
related topics and reviewing the progress of included in training on the Sustainability and topics, such as access to medicine and corporate
environmental initiatives, stakeholder engagement, Environmental Compliance policy. Stakeholders giving, are reviewed on an ongoing basis.
reporting and other items as deemed appropriate. and employees are encouraged to direct all
The Committee members are directly appointed As a means of improving and enhancing the
communications to the Committee via email at
by the Chairman and CEO, and represent the Committee members knowledge of various
corporateresponsibility@celgene.com.
Corporate Services, Finance, Technical Operations, topics related to sustainability and corporate
Human Resources, Celgene Global Health, Risk management is a central part of Celgenes responsibility, members are encouraged to
Corporate Affairs and EHS departments. corporate policy, and risk management efforts participate in external education sessions and
have been expanded to include sustainability conferences focused on these topics. Members
The Sustainability Committee reviews risks to enhance environmental compliance. Our also participate in educational sessions that cover
and approves Celgenes annual Corporate Sustainability and Environmental Compliance numerous and various topics during internal
Responsibility Report and serves as the liaison to policy dictates appropriate steps that departments meetings. Most common topics include corporate
outside organizations and programs focused on take to identify, analyze, plan and prioritize risk so giving strategies, stakeholder engagement,
corporate responsibility, such as the CDP and GRI. that appropriate actions can beimplemented. health and safety performance and access to
The Committee is also in charge of approving any medicineprojects.
updates to the Sustainability and Environmental
Compliance policy, which directs sustainability-
related initiatives. Specific information related
to Celgenes Sustainability and Environmental
Celgene Sustainability Committee
Compliance policy can be found here.
Richard Bagger Lisa Hayes
The Committee provides direct oversight of Senior Vice President of Corporate Affairs Director of Investor Relations
various topics related to the initiatives focused on andMarket Access Vikram Khetani
corporate responsibility that Celgene has interest
Zeba Khan Executive Director of Drug Development
in or has in the planning or implementation
Vice President of Corporate Responsibility Douglas MacGorman
phases. This includes proactive outreach to
stakeholders, environmental data collection and Carol Thompson Senior Director of Engineering, Construction
reporting results from discussions with executive- Senior Director of Human Resources and Carbon Management
level management. The Committee provides Anne Coogan Thomas Perone
twice-a-year updates on sustainability issues and Director of Environmental, Health and Safety Vice President of Legal
activities to the Celgene Executive Committee, the
Bernard Gianola
companys senior most management team.
Associate Director of Environmental,
HealthandSafety

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 43


Our Culture

PASSION FOR THE PATIENT We share a belief that what we do matters to the worldthat it is essential to the advancement
of healthcare. And that how we do it is what sets us apart from those who have come before us. Our Sustainability and
Environmental policies support our commitment to helping the planet as we help patients.
COURAGE TO FACE OUR CHALLENGES AND THE UNKNOWN We face the challenges of the past and the
uncertainties of the future. We embrace the unknown, pioneering new science and new ways of doing business. Our willingness to
Our challenge the status quo and take on risk is what enables us to create new standards in medicine and the broader world of human
Values health. Climate change and other uncertainties face the world and our business. Our Risk Management policy and environmental
The qualities reporting explain what we are doing as we look towards the future.
we look for TRUST IN OUR WORDS AND OUR ACTIONS We assume the best in each otherin terms of capability and intention
in our people and we treat each other with dignity and respect as we work together to always do whats best for Celgene. We value each
individual for the integrity they bring to their work and their relationships, both internal and external. We trust one another and
build trusting relationships with the communities where we work.
EXCELLENCE IN DELIVERING EXCEPTIONAL RESULTS We hold our work to the highest of standardsquality,
scientific and ethical. We also hold each other to equally high standards in the way we work, encouraging creativity and simplicity
in problem solving, transparency in communicating and results that are data driven. Our facilities and operations are managed for
resource efficiency and state-of-the-art performance.

WE ASSUME THE BEST We start from a place of inquiry, seeking to understand each other and giving everyone a chance to be
heard. We honor diverse points of view from our stakeholders, patients, investors and communities.
WE DEBATE OPENLY, HONESTLY AND COMPLETELY We share our views and disagreements in conversations
to encourage the best ideas to emerge. As we choose what initiatives to undertake, we collaborate with employees and other
stakeholders about our impacts and opportunities.
Our
Behaviors WE MAKE DECISIONS OBJECTIVELY AND TRANSPARENTLY We are clear about our roles, include the right people
How we treat in the conversation, consider the facts and share our reasoning. We pledge to objectively and transparently communicate the results
each other of our sustainability initiatives through our various disclosures.
WE ALIGN AND FOLLOW THROUGH We carry out the decisions we make as a team and agree to a process for
changing and communicating them. By consistently measuring our work year over year, we assess our progress against our
environmentalobjectives.

44 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


A GLOBAL MINDSET We engage our global colleagues in the discussions and decisions that shape who we are and how we
behavewithin Celgene and throughout the world. We honor the decisions that affect our daily work and respect the process for
making them.
CLEAR OBJECTIVES We prioritize our work according to the stated vision and goals of the company. We take ownership
of our role in contributing to the success of Celgeneadjusting timelines, budgets and peopleto reflect changes in our
corporatepriorities.
AN ALIGNED ORGANIZATION We coordinate our resources and make trade- offs in ways that benefit the whole. We
Our understand that our decisions and our work have an impact on others and we act accordingly, sharing responsibility for outcomes
Community and avoiding working in silos. We embrace processes that allow us the freedom to create and the ability to solve problems together.
The environment
AN ENGAGED WORKFORCE We honor the contribution of every personon the front lines, at the bench or in the back
wecreate together
office. We encourage each other to take on new responsibilities and explore new areas of growth. We respect that people have full
lives and do what we can to create work-life balance.
GOOD COMMUNICATION We are accessible to each other and communicate mindfully, respecting cultural norms of tone,
time zone and responsiveness. We make the information people need to do their job available and accessible.

We focus on the worlds most devastating diseasesproviding life-


changing alternatives for the unmet medical needs of today, while
continuing to explore and invest in the promise of tomorrow.

Changing the course of human health We bravely pursue the path of possibility, and we openly questionand
through bold pursuits in science, challengeevery assumption, standard and convention that gets in our
way.
and apromise to always put patients first.
Our
Purpose We do whatever it takes to deliver our products in a manner that is safe
Why we come and accessible to those who need them most.
to work every day

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 45


Business Conduct and Ethics Obtaining advice from and reporting We value differences of perspectives, thoughts
misconduct to the Global ComplianceGroup and ideas as well as gender, race and ethnicity.
Everything we do at Celgene is focused on a With all of these factors combined, we believe
singular mission of improving the lives of patients Using the Compliance and Ethics Hotline
that diversity contributes to driving better
worldwide. In order to fulfill that promise, we Using the Compliance and Ethics businessresults.
understand that we must instill trust in our Hotlinewebsite
colleagues, our patients, our partners and the Women comprise 54 percent of our global
Seeking guidance on compliance workforce and 46 percent of our management
public at large through our words andactions.
issues and questions from the Legal or positions (defined as senior manager and
Celgene is strongly committed to the principles Compliancedepartments above). Celgene has been a partner of the
of honesty, integrity and accountability. These Healthcare Businesswomens Association (HBA)
important concepts have provided the framework since 2006 and annually recognizes our HBA
Diversity
for our Corporate Vision, Mission and Values, Rising Stars within the organization, providing
and form the foundation of our Code of Diversity is seen as one of the strengths of
visibility organization-wide to the talent and
Business Conduct and Ethics. This Code applies Celgene. We have a culture in which we assume
accomplishments of our female employees.
to all employees and anyone acting on the the best in others and recognize the value of
Minority employees make up 33 percent of
Celgenesbehalf. diverse points of view, as we work to do what
our US workforce and 30 percent of US-based
is best for Celgene and patients. We honor the
Celgenes Board of Directors has oversight management positions. Celgenes global workforce
contribution that each employee makes. We
responsibility for the companys Global includes employees in 38 countries.
recognize that differences in life experiences,
Compliance Program, and the Chief Compliance cultural backgrounds, and work and life styles
Officer provides the full Board, the Nominating, contribute to our business. Above all, our Discrimination and Harassment
Governance and Compliance Committee employees are united in their commitment to It is the policy of Celgene Corporation to provide
and/or the Audit Committee with regular discover, develop and market life-enhancing equal employment opportunities in all terms
complianceupdates. therapies that make a measurable difference in the and conditions of employment. Our Equal
Celgenes Global Compliance Program is designed lives of patients all around the world. Opportunity Policy, which applies to all employees
to support legal and ethical conduct throughout We understand the importance of appreciating in the US, provides that we will not discriminate
the company. Employees have an obligation to the uniqueness of each individual and supporting against any qualified employee or job applicant
report any conduct that they in good faith believe diversity within the communities in which our with respect to any terms, privileges or conditions
violates laws, corporate policies and/or the Code employees reside and Celgene does business. A of employment regardless of race, color, religious
of Business Conduct and Ethics. As such, there culturally sensitive and diverse workforce is better creed, sex (including gender identity), sexual
are various avenues to both seek advice on ethical able to serve our customers needs and generate orientation, marital status, pregnancy, national
behavior and report concerns related to violations the wealth of ideas that are so key to innovation origin, ancestry, citizenship, age, veteran status,
of such behavior, including: and growth. physical or mental disability or medical condition
(including cancer or genetic information) or other
legally protected classifications.

46 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


This applies to all phases of employment, Our Anti-Bribery and Anti-Corruption Policy Conflicts of Interest
including the hiring of new employees, training, supplements the Code and provides standards
It is Celgene policy that employees and others
development, compensation, promotions, of conduct and practices for all employees of
acting on behalf of the company must be free
demotions, transfers and terminations. Celgene Celgene, its affiliates and subsidiaries to ensure
from conflicts of interest that could adversely
strives to create and maintain a work environment compliance with applicable laws. Training on
influence their judgment, objectivity or loyalty
in which people are treated with dignity, decency this policy has been distributed to 100 percent
to the company in conducting Celgene business
and respect. Our workplace environment is of employees worldwide, and target groups
activities and assignments. Employees, officers
characterized by mutual trust, respect and the have received enhanced in-person training led
and directors are prohibited from engaging in any
absence of intimidation or harassment. Employees by Legal and Compliance personnel. The policy
activity or having a personal interest that present
are able to work and learn in a safe, yet identifies potential actions and areas of corruption
a conflict of interest as laid out in the Conflicts
stimulating, atmosphere. that could generate risk for Celgene operations,
of Interest Policy. This policy outlines procedures
including:
The company does not tolerate unlawful that identify and manage conflicts of interest that
discrimination or harassment of any kind. Illegal payments and gifts for government may exist for employees and proper avenues of
Celgenes Anti-Harassment Policy, which officials for the purpose of influencing internal disclosure.
applies to all employees, provides education or securing an improper advantage to
The policy is predicated on the notion that no
about behavior that is deemed appropriate and assistCelgene.
one, whether an employee or other individual,
acceptable, as well as unacceptable practices that
Indirect payments through a third party to a commercial entity, or a company with a
will not be tolerated. Such unacceptable actions
other third parties or government officials. relationship to a Celgene employee, may
include discrimination, sexual harassment and
improperly benefit from Celgene through their
retaliation. All employees, regardless of their Permissible and non-permissible payments to
relationship with the employee, as a result of the
position, are covered by and are expected to government officials and third parties.
employees position in the company or through
comply with this policy and to take appropriate Facilitation payments to expedite or secure the use of privileged or confidential information
measures to ensure that prohibited conduct does performance of routine governmentalactions. gained as a result of employment by thecompany.
not occur.
Financial and accounting controls for
reporting of transactions and assets.
Bribery and Corruption
Contracts with third parties that are
At Celgene, bribery is never permitted. This
approved by the Legal Department and
principle does not change based on local culture
appropriately documented.
or if we are dealing with a government official,
healthcare professional or a commercial customer.
All employees must follow all applicable anti-
corruption laws and regulations, including the US CELGENE CODE OF
Foreign Corrupt Practices Act, the UK Bribery Act BUSINESS CONDUCT
and similar laws wherever we dobusiness. AND ETHICS

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 47


Social Media Human Rights
We recognize that the use of social media Celgene is committed to compliance with
Clinical Trial Data Sharing
has become widely used for the exchange all domestic and international laws and
We believe that responsibly sharing information with
of both personal and business information. regulations regarding protection against
patients, healthcare practitioners and researchers will
The Social Media Policy establishes the child labor, forced labor, compulsory
increase scientific understanding of disease, diagnosis and
position of Celgene on the use of social labor, infringements of indigenous rights
treatment options. Celgene's Clinical Trial Data Sharing
media by those acting on its behalf. and other human rights abuses. Celgene
Policy is consistent with the new European Federation of
Designated individuals are permitted to operations do not have any significant
Pharmaceutical Industries and Associations (EFPIA) and
provide business-relevant communication risks for incidents of these types of
Pharmaceutical Research and Manufacturers of America
related to Celgene (or any of its affiliates/ abuses, nor does our company create any
(PhRMA) Principles for Responsible Clinical Trial Data
subsidiaries) on social media sites types of situations where these types of
Sharing. This policy, implemented in 2014, applies to data-
andforums. incidentsoccur.
sharing from studies supporting indications approved in
Employees engaged in personal social One example of Celgenes focus on both the US and the EU. Key elements of the policy include
media communications do not represent demonstrating good corporate citizenship thefollowing:
or communicate on behalf of Celgene, for human rights is our participation in
Accepting requests from qualified researchers for
its current or potential products, the Human Rights Campaign Foundations
access to data from Celgene clinical studies for
employees, partners, customers, services Corporate Equality Index, which serves as
compounds and indications approved on or after 1
or competitors. This policy is not intended a roadmap for a corporations adoption
January 2014 in both the US and EU.
to infringe upon personal, non-business of inclusive policies, practices and benefits
interactions or online commentary for lesbian, gay, bisexual and transgender Providing lay summaries of results from all Celgene-
unrelated to Celgenebusiness. (LGBT) employees. This benchmark report sponsored interventional studies to the patients
shows the various levels of inclusiveness involved in the studies via their physicians, to
within industries based on scaled survey inform and educate them about their clinical
Antitrust and Competition
criteria and responses. Our submittal for trialparticipation.
Celgene employees are directed to follow all the 2016 Index includes all of the benefit
antitrust and competition laws in all places Registering all Celgene-sponsored clinical studies with
plans for LGBT employees and detailed patients on the public repository ClinicalTrials.gov in
where the company conducts business. information about our sustained diversity
Such laws are designed to preserve a fair the US and the EU clinical trials registry in the EU and
and cultural attitudes. on national registries as required at the countrylevel.
and level playing field for all businesses
by prohibiting any agreements and Confirming that clinical trial results of all Phase
practices that improperly restrain business III clinical trials and any trial results of significant
competition withinmarketplaces. importance are submitted for consideration as
abstracts during congresses and for publication in
peer-reviewed journals, regardless of the results of the
study and including studies that were discontinued.

48 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


Workforce
Workforce by Country
Most fundamentally, Celgene is its employees,
who are focused on the single mission of 4,500
delivering innovative therapies to patients with Canada
4,000

Number of Employees
unmet medical needs in cancer and inflammatory Italy
3,500
diseases. They are a varied group of talented Germany
people, including PhD bench scientists, sales 3,000
Spain
representatives, manufacturing engineers, 2,500
information technology professionals, clinical France
2,000
research physicians, lab technicians, marketing Japan
1,500
professionals, regulatory experts, accounting and UK
finance personnel, clinical coordinators, senior 1,000
Switzerland
executives, human resource managers, nurses and 500
pharmacists. US
0
2012 2013 2014
As different as each of these positions and the
individuals who hold them are, they are united in
their commitment to discover, develop and market
life-enhancing drugs that make a measurable Workforce by Workforce
2012 2013 2014 2012 2013 2014
difference in the lives of millions of people. Our Country Statistics
employees are in the right place, at the right time, Male 1,525 1,773 2,035
Canada 38 43 77
doing the right things, to build on the companys Gender
Italy 67 79 96 Female 1,723 1,932 2,183
scientific and commercialachievements.
Germany 67 78 98 North
By the end of 2014, Celgene had 6,379 employees 2,216 2,584 2,868
America
worldwide with a diverse range of roles and Spain 81 80 108 Region
responsibilities and a focused goal of achieving Europe 891 955 1,177
optimal yields and performance for our patients France 81 82 113
Japan 141 166 173
and for the company. The workforce data and Japan 141 166 173 Full-Time 3,193 3,647 4,144
charts presented within this section apply only Type
UK 136 140 185 Part-Time 55 58 74
to the 4,218 employees in the 22 facilities within
the reporting scope and not to the entire Celgene Switzerland 459 496 577 North America Region includes US and Canada
Europe Region includes Switzerland, Spain, France, UK,
employee population.
US 2,178 2,541 2,791 Italy and Germany

Reporting Total 3,248 3,705 4,218


Company Total 4,912 5,100 6,379

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 49


Celgenes US employees access to benefits depend The European group benefits scheme includes:
Workforce Statistics 2012 2013 2014 upon the type of employment. Full-time employees
Sickness benefit
have access to a full suite of benefits, while part-
Japan 21 10 19 Permanent ill health insurance
time employees have access to similar benefits, but
New Europe 207 181 323 at reduced levels. Some of the employee benefits Private medical insurance
Hires include thefollowing:
North Death in service benefit
333 361 444
America Group Insurance (including Medical, Dental,
Vision, Disability, Life) Private health cash plan cover
Japan 8 12 7
Retirement Savings 401(k) Plan Employee Assistance Program
Europe 69 106 99
Turnovers Educational Assistance Program
Vacation, Sick and Personal Days
North
176 153 136 Vacations and Leave of Absence
America Flexible Spending Account
Transportation and Parking Plan Flexible Working Policy
Fitness Membership Reimbursement
Workforce Growth by Region Employee Assistance Plan
Access to Financial Services (Banking, Credit Tax-free Bikes for Work
1000 Union, Mortgage, Insurance) Childcare Vouchers
800 Access to Health Incentive Programs Celgene sponsors savings and retirement plans,
Health Club Reimbursement Plan which qualify under Section 401(k) of the
600 544 Internal Revenue Code, as amended, for its US
Employee Discount Programs
Hires

employees. Our contributions to the US savings


400 308 281 Adoption Assistance Program plan are discretionary and have historically
been made in the form of Celgene common
Smoking Cessation Program
200 stock. Such contributions are based on specified
Celgene employees outside the US are offered percentages of employee contributions up to
0 competitive benefits packages. These competitive a certain percentage of eligible compensation
2012 2013 2014
Turnovers

benefits packages consider local legal requirements or a maximum permitted by law. Celgene also
-200 and local pharmaceutical market practice, all of sponsors defined contribution plans in certain
which align to Celgenes global philosophy of international locations. Participation in these
-400 total rewards. plans is subject to the laws in effect for each
North America Europe country and may include statutorily imposed
Japan Net Hires minimum contributions.

50 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


Professional Development Celgene Growth Essentials Program that is Several new education and development
designed to equip a manager of managers programs are offered through the University
The success of Celgene in achieving its business with the practices and competencies to lead of Virginias Darden School of Business.
objectives depends on the contributions of each successfully at various levels.
of its employees. Celgene is committed to the The Management Development Program
professional and managerial development of our Partnership with Drexel University for access offers an immersive study of all aspects of
employees to meet both the changing demands to 100+ collegiate-level programs, including management, from accounting, finance,
of positions and to assist employees in achieving business, information sciences, education and technology, operations, competition, strategy
their personal and professional goals. Our guiding professional studies. and marketing to the international economy
principles for employee development can be and organizational change. Participants in
The Catalyst Program prepares future leaders
found on the Professional Development section of this course will see the organization as more
to meet business challenges of today and
Celgenes Career website. than the sum of its parts and be geared to
tomorrow. The program encompasses various
use a broader vision to drive more effective
Celgene encourages our employees to take modules that analyze leadership and business
management and strategic decisions.
part in courses of study that enhance their development topics aimed at accelerating
general development and satisfy requirements leadership behaviors necessary for driving the The Executive Program delivers the core
of Continuous Professional Development. This company. The program emphasizes a One content executives need to become strategic
supports the Celgene philosophy on learning and Celgene culture by deepening trust and leaders, including global and strategic
development by advancing personal and technical alignment among future leaders. acumen, global economics, management and
development of all employees to assist achieving administrative finance, leadership, innovation
Workshops through a number of
individual goals and corporateobjectives. and growth. This is a transformational
organizations, including:
program that concentrates on the executive
Various opportunities exist for employees to Institute for Management Studies whole, including physical and mental well-
expand their knowledge base and background being. The program helps participants
American Management Association
to enhance their current and future performance develop an enterprise perspective, the
capabilities. These opportunities also contribute National Training Laboratories Institute ability to see the big picture and to take the
to making our employees embrace and place C-level point of view and develop a deep
Franklin Covey
Celgenes Leadership Success Behaviors, five understanding of how different disciplines
DEVELOPS
practices of individuals who produce exceptional TALENT within business interact.
results, into every day operations. These learning
LEADS
and educational programsinclude: CHANGE
Celgene Leadership Foundation Program
Celgenes Leadership
that is designed to enhance the core DEMONSTRATES
capabilities of Celgenes first-line managers CHARACTER Success Behaviors
ofindividualcontributors.
INSPIRES &
ACHIEVES MOTIVATES
RESULTS

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 51


Public Policy
Public policy engagement is an important role for
private sector companies. It is essential to work
with public policymakers to help ensure that the
policy environment is supportive of patient access
to life-changing medications and enhances the
promise of medical innovation. Our public policy
advocacy reflects our commitment to improving
the lives of patients and advancing the course
of human health through innovation and bold
pursuits of science.
Government policies directly impact healthcare
access and innovation. These policies affect many
aspects of Celgenes business model, including our US Congresswoman Katherine Clark (D-MA) and US Congressman
ability to meet patient needs and provide value Scott Peters (D-CA) at the Celgene Washington Legislative Summit
to all our stakeholders. For these reasons, we
actively participate in public policy discussions As a member of the State Patients Equal Access On January 1, 2015, Wisconsin, Missouri, Ohio
to share our perspectives and experience as Coalition, Celgene works with patient advocacy and Kentucky were the most recent states to have
an innovative biopharmaceutical company and provider groups, including the Cancer Oral Oncology parity laws go into effect. To
committed to advancing therapies for patients Support Community, the Leukemia & Lymphoma date, 40 states and the District of Columbia have
with unmet medical needs. Throughout the year, Society, the Association of Community Cancer passed oral oncology parity laws. Oral oncology
Celgene representatives engage in public policy Centers, Susan G. Komen for the Cure, and the parity laws are intended to address the problem of
discussions and activities both in the US, the EU International Myeloma Foundation, to help inequitable coverage between oral and IV anti-
and elsewhere. patients, advocates and healthcare providers better cancer medications by requiring health plans to
understand the benefits of newly enacted state equalize a patients out-of-pocket costs between
US Engagement laws relating to oral oncology parity. These efforts oral and IV therapies. Celgene works with its
include virtual town hall meetings, webinars, partners in the patient, healthcare provider
Celgene employee ambassadors participated in over
educational fact sheets and other resources to and life sciences communities to advance this
70congressional meetings in both the US House
ensure that these laws are positively impacting important public policy goal.
of Representatives and the US Senate at the annual
cancer patients.
Celgene Washington Legislative Summit. Seven
members of Congress, including Representatives
Leonard Lance (R-NJ), Scott Peters (D-CA)
and Katherine Clark (D-MA), participated in
plenary sessions to share insights on public policy
developments concerning healthcare issues.

52 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


Roundtable discussions were focused on
regulation, intellectual property and patient access
policies that would accelerate and provide faster
treatments for patients with unmet medical needs.
The participants agreed that the government needs
to help reduce costs, quicken the pace of clinical
trials and provide adequate incentives which
give patients faster access to therapies. Other
items noted include more collaboration, target
validation, investment in innovation and statutory
support for a streamlined approval process.
In November 2014, Celgene welcomed legislators
from 11 states to the San Diego research facility
US Congressman Leonard US state legislators learn about
as part of the Council of State Governments
Lance (R-NJ) at a roundtable (CSG) Policy Academy on Innovations in Health the drug research and discovery
discussion at Celgene on Care. During the visit to the Celgene facility, process at Celgene San Diego
the legislators explored the clinical development
biomedicalinnovation process and its important role in bringing life- Engagement in EU and Japan
changing treatments to patients. Legislators In the EU, Celgene strives to support a continuous
Celgene hosted a congressional roundtable led
also shared best practices for expanding dialogue with policy-makers and other relevant
by Congressman Leonard Lance, who represents
access to innovative medicines through the stakeholder to create a mutual understanding
New Jerseys Seventh Congressional District,
policymaking process. Other topics presented of shared concerns and find solutions to ensure
which includes Celgenes locations in Summit,
included an overview of patient access issues sustainable patient access to therapies. As part of
Warren and Berkeley Heights. The roundtable
across the country including a perspective from this engagement, Tuomo Patsi, Celgenes EMEA
was held as part of The 21st Century Cures
Representative Sheila Solon (R-MO), who President, exchanged views with representatives
Initiative, a bipartisan initiative launched by the
discussed how she passed an oral treatment parity of European institutions (mainly the European
Committee on Energy and Commerce, which
bill in her state in 2014. Commission and the European Parliament).
aims to create a comprehensive roadmap to
accelerate the pace of cures in the US by exploring Discussions included topics related to patient
advancements in technology, the role of federal access, such as the Orphan Drug Regulation
programming, regulation and research and how and the Clinical Trials Regulation and Celgenes
to best contribute to medical breakthroughs. insights on policy issues that are high on the
The roundtable was well attended by Celgene European Commissions agenda.
employees, patient advocacy groups and
associations such as BioNJ, Healthcare Institute of
NJ and Rare New Jersey.

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 53


Celgene is also actively engaging externally Celgene affiliates are also actively building
in current debates around pricing and platforms of dialogue with their Pharma Fakten
reimbursements of medicines. Tsveta Milanova, national governments.
Celgenes Vice President for Corporate Pricing Pharma Fakten (Pharma Facts) is an initiative
Celgene Spain organized a roundtable debate
and Market Access, chaired a briefing session for by biopharmaceutical companies in Germany
on Building the Health of the 21st Century:
advisors to Members of the European Parliament that serves as an information channel that
Innovation and Sustainability with 30 of
on the pharmaceutical innovation process and provides facts, figures and perspectives on the
the most reputed Spanish health experts and
how medicines are reimbursed. This was a first global pharmaceutical industry mainly targeted
issued a set of policy recommendations on
step toward a wider platform for dialogue with towards journalists. This includes developments
that topic.
European policymakers, in collaboration with in the medical, scientific, economic and political
other biopharmaceutical companies, to help Celgene Italy supported the organization area affecting the whole pharmaceutical industry.
different stakeholders better understand each of an institutional meeting at the Chamber The website does not advertise for companies
others concerns and identify potential solutions to of Deputies to celebrate the first World or the industry as a whole and the editorial
ensure sustainable patient access to therapies. Pancreatic Cancer Day. staff that supervises the website production is
independent of the companies that support
The EMEA Government Relations team also Celgene Germany launched an informative
the initiative.
works with Celgene national affiliates across website with key data and facts about
Europe to voice their countrys issues with the pharmaceutical industry (see Pharma Celgenes involvement with Pharma
European politicians. In September 2014, the Faktenbox). Fakten includes:
Celgene EU team and affiliates from the Czech
In Japan, Jackie Fouse, President of Hematology Being one of the founding members of the
Republic, Slovakia, the UK, Italy, Belgium, The
& Oncology, met with lawmakers from both initiative, along with GlaxoSmithKline.
Netherlands, Germany, Turkey, Switzerland and
the upper and lower houses of the Diet. These
Sweden met together with a number of Members Current financial supporter of
lawmakers are working to improve the state
of the European Parliament. Discussion was based the organization.
of healthcare for Japanese citizens, as well as
around issues related to rare diseases, preparations
education and womens issues. A Celgene representative from the
for the World Pancreatic Cancer Day,
Government Relations department is a
articulating the value of medical innovation
member of the advisory board which
in Europe and Celgenes position on the
consults the editorial staff.
consistent values assessment and sustainable
funding of orphan drugs in Europe. The
overarching goal of these meetings was to
integrate European and national activities to
ensure knowledge sharing occurred between
Celgene and policymakers.

The Building the Health Environment


of the 21stCenturyroundtable

54 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


Celgenes Positions on US Public Policy
Step Therapy / UtilizationManagement Medicare Part D Cost-Sharing for Innovative
Health insurance companies are increasingly Medicare Part D has been able to provide OralTherapies
employing utilization management policies such comprehensive prescription drug coverage Celgene supports public policies that limit
as step therapy to limit the use of prescription that beneficiaries are highly satisfied with, the high out-of-pocket costs that health plans
medicines by forcing patients to fail certain through competition and choice, at a cost far require patients to pay for innovative therapies.
therapies approved for a condition prior to less than anticipated, saving money for both These pro-patient policies include oral
other approved treatments. When used with the government and those enrolled. Celgene oncology parity legislation, which equalizes
appropriate patient protections, step therapy supports maintaining the current structure of the out-of-pocket costs that patients must
can function as an effective way to guide drug the program, including the important access pay for IV and oral anticancer therapies and
utilization and subsequently control costs. In protections that exist for patients with specialty tier legislation which reduces the high
some cases, however, step therapy can prevent life-threatening diseases like cancer. cost-sharing that patients with diseases like
patients from accessing the most effective cancer, psoriatic arthritis, multiple sclerosis and
treatment recommended by their healthcare Protecting the Integrity of REMS and human immunodeficiency virus (HIV) currently
provider. Celgene supports public policies that must pay for innovative oral therapies.
Patient Safety Programs
ensure health plan utilization management
policies are clinically appropriate, transparent Celgene is committed to ensuring that product-
risks related to any of our commercial or Strengthening the Drug Discovery and
and allow for physician/patient choice.
development products are identified, assessed Development RegulatoryFramework
and managed effectively to ensure patient Efficiency, predictability, flexibility and
The Patient Protection and safety, prevent risk and minimize the occurrence collaboration are all key elements to a
AffordableCare Act of adverse events. REMS play an important regulatory framework that cultivates and
Celgene supports efforts to ensure that patients role in our commitment to patient safety (see speeds development of new therapies. Celgene
purchasing health insurance through the new section on REMS in the Commitment to Safety supports regulatory policies that streamline
state and federal marketplaces created by the chapter). Celgene opposes policies, like the and modernize the discovery and development
Patient Protection and Affordable Care Act forced sale of REMS (with Elements to Assure process, including those that support the
have access to information about coverage Safe Use (ETASU)) drugs for bioequivalence use of more master protocols, biomarkers
and cost-sharing for the plans they purchase testing or the inclusion of REMS drugs in drug and incorporate patient reported outcomes.
and that the plans offered provide adequate repository and take back programs, that would In addition, Celgene supports incentives to
coverage and reasonable cost-sharing for hinder the ability to protect patient safety and encourage the development of more therapies
prescriptiondrugs. execute REMSprograms. in areas of high unmet medical needs.

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 55


Celgenes Positions on European Public Policy
European Cooperation on European Cooperation on A Renewed Commitment
PricingandReimbursement RelativeEfficacy Assessment toRareDiseases
Due to the considerable variations in healthcare Regional European cooperation on Celgene considers that the incentives provided
systems across Europe, Celgene considers Relative Efficacy Assessment (REA) may by the European Regulation on Orphan
that patients are better served if pricing and be an appropriate response to the very Medicinal Products have been a catalyst
reimbursement decisions are taken by each specific regulatory and market characteristics for companies to invest in developing new
country individually. This ensures a sufficient of the EU. In Europe, Celgene recognizes the treatments for patients with rare diseases.
level of flexibility allowing for pragmatic access potential to hasten patient access by developing There has been a significant increase in the
solutions that are adapted to the needs of each joint European REA reports, which could then number of approved orphan medicines, from
country. Without creating duplications, other be used directly to facilitate access decisions in 8 before the regulation to over 100 today.
types of cooperation between EU countries the countries. Such assessments should focus However, to maintain and increase research in
on aspects such as scientific assessments of on the scientific evaluation of clinical efficacy. this area, it is fundamental that a differentiated,
the clinical value of medicines, early dialogue Economic and ethical considerations should stable and predictable regulatory environment
or horizon scanning have the potential to remain at the national level. Celgene considers incentivizing research in areas of high unmet
contribute to faster and better patient access. that patient access can only be improved if need is secured. Furthermore, great effort must
the European REA does not create additional be made to improve patient access to the new
International Reference Pricing requirements for marketing authorizations orphan therapies now available.
and if national health-technology assessment
Celgene supports public policies which aim (HTA) agencies do not duplicate
at reducing patient access inequalities, in assessments. Celgene is also
particular through differentiated approaches working to ensure that the
to pricing and reimbursement. To achieve this, developments of new HTA
Celgene believes that International Reference systems at both the national and
Pricing within the EU should be based on more EU levels reflect the specificities
coherent reference baskets that only include of orphan drugs.
economically comparable EU countries. The
indiscriminate effects of International Reference
Pricing have undermined the capacity of
innovative biopharmaceutical companies to
address inequalities in patient access.
Celgene employees at the EU
Government Relations Training
inBrussels

56 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


Celgenes Political Action Committee (PAC) is
dedicated to representing the interests of Celgene
and its employees with elected officials and
candidates for public office in Washington, DC
and state capitals across the US. The PAC supports
these officials and candidates who share our core
principles of innovation and access in health
and are champions for these issues. The Celgene Political Contributions at Federal and State Levels 20122014
PAC is an opportunity for eligible employees to
pool resources with those of their peers, having a Contribution By Celgene Corporation By Celgene PAC
greater impact than one individual acting alone. Location 2012 2013 2014 2012 2013 2014
The Celgene PAC positively impacts the policy
Federal Candidates N/A N/A N/A $28,000 $21,500 $62,000
environment on behalf of the patients we serve
by supporting candidates from both political State Candidates $4,950 $27,450 $44,400 $1,350 $4,950 $15,050
parties who share our commitment to access and
Political Committees $97,000 $88,400 $91,150 $2,500 $14,500 $51,000
innovation in healthcare in the following three
core principles: Total $101,950 $115,850 $135,550 $31,850 $40,950 $128,050

Expanding patient access to medicines


through a competitive marketplace and a
The Celgene PAC Board of Directors, which is To promote transparency, information about all
regulatory environment where research and
comprised of a cross-functional group of Celgene political contributions in the US by the Celgene
innovation can flourish.
employees, considers recommendations for PAC PAC and Celgene Corporation is provided in
Protecting the patient-physician support and approves contributions to candidates a semiannual report posted on the company
relationship and ensuring patient access to and political committees. The Celgene PAC website, categorized by state, candidate and
innovativetreatments. Board also reviews and approves any political amount. These reports can be found here. During
Recognizing the important role of contributions made by Celgene Corporation in 2014, Celgene Corporation and Celgene PAC
biopharmaceutical companies and their states and to entities where contributions with made contributions totaling $135,550 and
employees in the healthcare. corporate funds arepermitted. $128,050, respectively. These contributions went
to 158 candidates in 33states from both political
parties at the federal and state levels, as well
12 political party and PAC organizations
and associations.

Celgene 2014 Celgene 2014


First Half Political Second Half Political
Contributions Report Contributions Report

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 57


Supply Chain
Supplier Diversity
We expect our suppliers to deliver sustainable E-Sourcing
solutions while operating at high ethical standards Celgene recognizes the value and
and adhering to fair business practices. These E-sourcing is our preferred method importance of a diverse supplier
of doing business with our base that is enshrined in our
suppliers are part of regional, national and commitment to the communities
suppliers. This creates ease of
international supply chains that are involved in project management, increases we serve. It is our commitment
the manufacturing process for Celgene therapies. processing speed, maintains to facilitate and encourage the
transparency and provides a growth of small and diverse
Celgene procurement follows a strategic sourcing consistent global process. suppliers as Celgene itself grows
process to identify the best suppliers and works as a global organization.
with internal teams to ensure we obtain the best Celgene
value from our suppliers in terms of quality, cost, Strategic
service and delivery. We understand the value Sourcing
these businesses bring to Celgene and strongly Process
Sustainability
encourage them to participate in our competitive
We expect our suppliers to
bidding processes. We appreciate the benefits of Ethics
conduct business in a safe, sound
supplier diversity and consider small and diverse and sustainable environment and We expect our suppliers to follow
businesses to be an asset to our company and minimize environmental impact the Celgene Code of Business
are continually seeking to develop long-term from their business operations. Conduct and Ethics. Our
relationships with suppliers in the Small Business Our suppliers are encouraged to decisions will be influenced by
promote sustainable and business decisions and not by
Administration (SBA) program,including: responsible business practices personal favors or opinions.
Small Businesses while integrating environmentally
related initiatives into their
Minority Owned Businesses (Small/Large) own operations.

Woman Owned Businesses (Small/Large) 139

Small Disadvantaged Businesses (SDB) Celgene had business relations with 254 SBA Celgene is a member of the Supplier Diversity
suppliers in 2014, which represents about 3.8 Pharmaceutical Forum, a sub-committee of the
Historically Underutilized Business
percent of the suppliers used through US general Pharmaceutical Forum of the Institute for Supply
Zone Businesses
sourcing. This also represents approximately 2.1 Management. The Forum is a collaborative
Veteran and Service-Disabled Veteran Owned percent of the spend through US general sourcing group of supply chain professionals with the
Businesses (Small/Large) (this does not include products and services goals of expanding supply base diversity in
related to our therapeutic manufacturing and the pharmaceutical industry, developing best
development activities). Many of these suppliers and next practices in supplier diversity and
represent more than one type of SBA category and professionaldevelopment.
further assist our goal of developing our business
partnerships with diverse suppliers.

58 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


In addition to the SBA program, Celgene also The following graphs highlight the spend quantities
uses suppliers for major operations within the we invest in local and regional businesses and
local and regional areas where we have major generate direct impacts upon these economics.
operations for general, non-product related Our general, non-product related purchasing in the
purposes. We realize that supporting these US is focused in New Jersey to support our major
suppliers can have a positive, direct impact on research and corporate operations. This is also
regional economies through employment and local true for the operations in Japan and at our major
sustainable development. operations in the UK and Switzerland.

Spend Quantities on Local/Regional Suppliers in the US


$1,600
$35
$1,400 $30
$25
$1,200

millions
$20
$1,000 $15
$10
millions

$800
$5

$600 $0
KS AZ
$400

$200
2012

2013

2014

$0
NJ CA(SF) CA(SD) MA KS AZ
Within 10 Miles of Facility Between 10-50 Miles from Facility More than 50 Miles from Facility

Columns represent 2012, 2013 and 2014 respectively


NJ New Jersey facilities, accounting for Tri- MA Bedford facility, accounting for KS Overland Park/Kansas City facility, AZ Phoenix facility
State area (NJ, PA, NY). NewEngland area (MA, RI, CT, ME, accounting for Kansas and Missouri CA (SF) San Francisco facility
NH, not VT) CA (SD) San Diego facility

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 59


Spend Quantities on Local/Regional Suppliers in Europe and Japan
$400
$60
$350 $50

$300 $40

millions
$30
$250
$20
millions

$200
$10

$150 $0
CA FR ES (M) ES (S)
$100

$50
2012
2013
2014

$0
JP DE UK CH (B) CH (Z) IT CA FR ES (M) ES (S)

Within 10 Miles of Facility Between 10-50 Miles from Facility More than 50 Miles from Facility

Columns represent 2012, 2013 and 2014 respectively


JP Tokyo, Japan CH (B) Boudry, Switzerland UK Stockley Park, UK ES (S) Sevilla, Spain DE Munich, Germany
CA Mississauga, Canada CH (Z) Zofingen, Switzerland ES (M) Madrid, Spain FR Paris, France IT Milan, Italy

Supply Chain Security


Celgene joined the Customs-Trade Partnership In 2013, CBP selected Celgene to participate in a In 2014, Celgenes system attained the highest
Against Terrorism (C-TPAT) program as an C-TPAT revalidation, which included an on-site rating possible by the CBP for this revalidation.
importer in 2006. This voluntary initiative review of our security procedures and the overall It was noted that management was engaged in
between US Customs and Border Protection (CBP) supply chain system for the company in both the supporting the C-TPAT program and was focused
and private business aims to build relationships US and in Europe. on monitoring and improving security procedures
that strengthen the international supply chains through periodic self-assessments.
and improve US border security.

60 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


Leishmaniasis occurs in 98
Global Health countries with 350 million
people living at risk of infection
worldwide. This complex and
At Celgene, we believe patients should have
diverse disease causes severe
the opportunity, regardless of their location or
disfigurement, disability and
financial resources, to benefit from advances in
death and is usually found in
prevention, diagnosis and treatment of disease.
poor populations living in remote
Celgene Global Health (CGH), founded in 2009,
areas.
collaborates with partners around the globe to
find innovative solutions for healthcare challenges Chagas disease results in
in the developing world. This work is based on significant disability with great
our belief that innovative therapies and healthcare social and economic impact and
partnerships are essential components to long- is endemic in 21 countries across Tuberculosis (TB) is a pandemic bacterial
term progress and prosperity around the globe. Latin America. This parasitic disease causes disease commonly affecting lungs with the
chronic pain, organ failure and death, and vast majority of cases occurring in low- and
has been growing in non-endemic, developed middle-income countries. TB is the leading
Neglected Diseases countries. cause of death of people living with HIV, and
CGH is screening our diverse chemical library multi-drug resistant TB is present in virtually
Malaria, the leading parasitic cause of
against the pathogens for neglected diseases of the all countries.
morbidity and mortality worldwide, is present
developing world, including: Human and Animal African Trypanosomiasis
in over 100 countries and threatens half
Viral Hemorrhagic Fevers are caused by of the worlds population. In Sub-Saharan (HAT and AAT) occurs in humans (sleeping
multiple families of viruses, many of which Africa, it is the single largest cause of death sickness) and feed/work animals in 37 African
cause severe, life-threatening disease. The for children under the age of 5 and costs an countries. Approximately 60 million people
majority of these viruses pose a serious risk as estimated $12 billion every year. are at risk of being infected with HAT, which
biological weapons and have been classified can cause severe neurological conditions and
Lymphatic Filariasis is a parasitic infection
as Category A agents by the Centers for death. The cattle disease manifests as wasting
that leads to the disease commonly known
Disease Control and Prevention. and has a severe economic impact
as elephantiasis that can result in an altered
($1-1.2 billion /year), worsening the social
lymphatic system and abnormal enlargement
and living standard of the poorest people in
of body parts. Filarial diseases are the most
Sub-Saharan Africa. Current treatments for
devastating of the NTDs in terms of social
both the human and animal disease entail the
and economic impact; the disease causes
use of prohibitive delivery methods.
disability and disfiguring effects for infected
individuals and leads to social stigmatization
and isolation.

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 61


Research Collaborations Recently, CGH expanded its collaboration with This Research Collaboration Agreement will focus
Drugs for Neglected Diseases initiative (DNDi) on the lead optimization stage of pre-clinical
CGH is collaborating with global Product to identify and optimize new therapy candidates research. CGH will provide novel compounds of
Development Partnerships, academic institutions, for the treatment of NTDs. Since 2011, CGH interest for the targeted diseases and use its target-
non-government organizations, public/private and DNDi have collaborated on the screening identification and therapy-discovery technology
funding organizations, contract research of CGHs compound library of over 400,000 platforms to progress these compounds and
organizations and other pharmaceutical compounds for activity against NTDs. With this to identify clinical candidates. Celgene will
organizations to evaluate our proprietary expanded collaboration, CGH and DNDi will partner with DNDi to confirm screening hits
compounds for activity in neglected diseases. work together to identify and optimize potential and coordinate hit-to-lead compound work and
CGH programs are in various stages of therapeutic candidates for leishmaniasis, HAT, subsequent lead optimization efforts.
development from screening to lead optimization chagas disease and lymphatic filariasis.
to clinical trials.

Celgene Global Health Pipeline


Discovery Development
Lead Lead
Hit ID DC Non-Clinical Phase I Phase II
Identification Optimization
Visceral Leishmaniasis
Chagas/HAT
Malaria
Helminths
Wolbachia
Tuberculosis
CC11050
Tuberculosis
Erythema nodosum leprosum
Immune reconstitution
inflammatory syndrome
CC-11050/CC-5048
Hemorrhagic Fevers (Junin,
Lassa, Ebola, Rift Valley
Lenalidomide
Human Immunodeficiency Virus
Pomalidomide
Kaposi Sarcoma

62 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


CGH is actively applying modern discovery efforts
CGH Neglected Diseases Collaboration Locations in a collaboration with Medicines for Malaria
Venture (MMV) to identify novel therapies for
blood and liver-stage malaria. The worldwide
disease burden for malaria is enormous, with
more than half the world at risk and with the
development of resistance to existing therapies.
In collaboration with MMV, we have discovered
several novel classes of anti-malarial compounds
from an erythrocyte whole cell phenotypic
screen against the major pathogen, Plasmodium
falciparum. The direct measure of cell activity
from this blood-stage phenotypic screen has
allowed us to simultaneously optimize potency
and physicochemical properties. Our malaria
therapy discovery efforts are currently focused on
identifying a proof-of-concept compound from
these chemical series and profiling the chemical
Australia series against various strains of malaria.
Belgium
Product Development Partners CGH has also teamed with the H3-D Drug
Cameroon Discovery and Development Center at the
Academic Collaborator University of Cape Town in South Africa to
China
Funding Organization identify and develop next generation therapies
France
for patients with TB. This joint therapy discovery
Contract Research Organization India program will identify novel therapies for the
Other Pharmaceutical Company Japan treatment of TB. Under the collaborative
agreement, Celgene will partner with H3-D
Nepal
scientists to optimize active compounds identified
Norway from the Celgene chemical library. The joint,
South Africa global team plans to deliver pre-clinical candidates
suitable for testing in humans.
Spain
Switzerland
UK
US

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 63


A CGH discovery and development collaboration Capacity Building Their mission is to be the premier cancer center in
with Advinus Therapeutics Ltd. and the London Sub-Saharan Africa with the vision that one day
School of Hygiene and Tropical Medicine Collaborations the AOI will become the model for international
focuses on therapies for visceral leishmaniasis, During the past several years, Celgene has been collaboration in cancer care, education and
the second-largest parasitic killer in the world, working with the Indiana University School research in resource constrained settings. To date,
with an estimated 500,000 cases per year. The of Medicine and Moi University Teaching and the support of Celgene and other key donors
collaboration was formed to address patient Referral Hospital in Eldoret, Kenya. Since 1989, has allowed a dramatic expansion of services
needs that are not met with the current treatments Moi University School of Medicine, Moi Teaching through the AMPATH-Oncology Program.
available and highlights the experience and and Referral Hospital and a consortium of North More specifically, Celgene is providing support
expertise of both organizations including American academic health centers led by Indiana to AMPATH through expanded support for
medicinal chemistry, adsorption, distribution University have worked together to deliver health their pharmacy infrastructure and novel patient
metabolism and excretion, drug metabolism and services, conduct health research and develop care strategies, which include education for
pharmacokinetics expertise and design of leaders in healthcare for both North America and patients with hematologic disorders, expansion
in vivo proof-of-concept models. The partnership Africa. The institutional partners are collectively into Tanzania, which includes pharmacy supply
reaffirms the commitment of CGH to develop named the Academic Model Providing Access to chain enhancement, and infrastructure support
therapies to treat neglecteddiseases. Healthcare (AMPATH). In 2001, in the face of the and continued development of the AMPATH-
deadliest pandemic in human history, the partners Oncology Program.
In 2015, CGH and GALVmed, the leading not-
for-profit global alliance to protect livestock joined forces to create one of Africas largest, most Celgene is also providing support to the University
and improve human lives, initiated a joint comprehensive and effective HIV and acquired of Colorado (CU). Under the auspices of the
drug discovery program after identifying a immunodeficiency syndrome (AIDS) control Colorado School of Public Health, the Center
Celgene compound that exhibited very potent systems. for Global Health at CU has built valuable
activity against two strains of African Animal Today, in partnership with the Kenyan Ministry relationships with universities and clinics in
Trypanosomiasis (AAT). The team, working on of Health and the US Government, AMPATH is several low and middle income settings including
the bovine disease to help ease the economic expanding from an HIV focus to address critical Peru, Guatemala, Vietnam and Indonesia. These
burden of the sick and unproductive animals, has needs for primary healthcare, chronic disease relationships will enable health professionals
dual objectives: to test the active compound for care and specialty care. In the area of oncology, from these developing countries to participate
in vivo efficacy and to conduct research to identify AMPATH has formed the AMPATH-Oncology in Global Health Fellowships at the Anschutz
other active agents that can address complete cure Institute (AOI) consisting of hematologists and Medical Campus at CU. The vision of the Center
of the disease coupled with ease of administration. oncologists. The focus of this effort is to develop a for Global Health is to work with impoverished
sustainable and comprehensive academic clinical communities throughout the world for better
For more information, visit www.celgene.com/
care cancer program serving the 20 million healthcare, better health and a better future
responsibility/global-health/.
citizens of western Kenya and neighboring areas. for children and their families with the goal
to innovate and create advances in the global
standard of health.

64 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


World Child Cancer
Under the umbrella of the WeCare program, The WeCare program includes a specific
Celgene has become a corporate sponsor of initiative for World Child Cancer called Box-
World Child Cancer, whose mission is to a-Bear, where Celgene collects teddy bears/soft
improve cancer diagnosis, treatment and care toys and sends them to childrens hospitals in
for children across the developing world. This developing countries. These countriesinclude:
organization treats children with cancer in
Malawi Bangladesh
developing countries through its network of
international hospitals and volunteer specialists El Salvador Honduras
with teams on the ground. World Child Cancer Dominican Panama
is one of the few organizations involved in Republic
the twinning of international hospitals and Colombia
volunteer specialists with teams on the ground. Zambia
Costa Rica
Current projects exist is Bangladesh, Malawi, Myanmar
Colombia, Ghana, Philippines and Cameroon. Nicaragua
Philippines
The partnership that Celgene has built with Guatemala
World Child Cancer since 2011 goes beyond Tanzania
Ghana
financial donations. For example, Celgene UK/ Kenya
Ireland has been involved in a sponsored
This initiative and the quantities of donations
walk, donated to raffles and participated in
are continuously advertised to the employees
a bike-a-thon. Celgene has been recognized
at the UK affiliate, and to date more than
by World Child Cancer as its official
3,200bears have been donated.
corporate sponsor,
and was featured
in the Financial
Times newspaper
advertisement as its
charity of choice The map showing locations of
during the Annual
Seasonal Appeal in
bear and toy donations at the
December2013. Celgene UK affiliate

Celgene employees at Boudry with donated bears and toys

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 65


World Child Cancer
To support World Child Cancer, the Celgene
UK/Ireland affiliates convened Celgene
Malawi 7, an all-female team of seven staff
bicyclists plus a support team. The team cycled
across Malawi from the capital city, Lilongwe,
to the second largest city, Blantyre, covering
over 310 miles on dirt roads in just 5 days.
The Celgene Malawi 7 members visited two of
World Child Cancer hospitals at the beginning
and end of their ride. This gave them an
opportunity to see firsthand the critical work
the team there provides, and allowed them to
deliver greatly needed medical provisions and
supplies. A total of $88,877 was raised from
this cycling event.
In June 2014, the first EMEA Soccer Event
was held in Amsterdam to raise funds for
World Child Cancer. A total of 16 teams and
more than 150 participants from 25 countries
enjoyed the sporting challenge as well as
the networking and camaraderie between
employees across Europe. The donations
raised for World Child Cancer from this event
exceeded $20,000 and there are plans to
continue this event on a biennial basis.

Left Column: The Celgene Malawi


7 Team cycling event
Right Column: Employee teams at
the EMEA Soccer Event

66 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


The collection and disclosure of our GHG Celgene has promoted and endorsed pragmatic

Environment and emissions, water management and climate change


strategies are helping the company prioritize
strategies to reduce our environmental impact at
our facilities and within the communities where

Sustainability efforts that revolve around environmental


stewardship and our commitment to
we are located. Some of these strategies include
the following:
environmental conservation. Celgene strives to
Purchasing electricity derived from certified
Celgenes global operations require valuable address the following environmental aspects:
renewable energy sources (solar and/or wind
natural resources to fulfill the expectations of Employee awareness from utilities).
all of our stakeholders. These resources include
Pollution prevention Enhanced monitoring of utility resources,
natural gas for heating, water for consumption
including natural gas, electricity and
and cooling and various consumer goods for Waste minimization
municipal water supply.
general operations. Our strategies include policies
Supply chain analysis
and practices to reduce the companys impact on Collection of organic/biodegradable waste for
these natural resources to contribute positively to Energy and fuel conservation compost creation and continued expansion
our natural world. Performance improvement for collection of recyclable waste.

Water conservation Various energy-efficient lighting retrofits and


Environmental Management inclusion of similar fixtures in renovations
Reporting and disclosure and new projects.
Our environmental management approach
incorporates best practices and programs related Regulatory compliance Continued replacement and optimization
to energy, water, waste, transportation and supply The developed environmental management of heating, ventilation and air conditioning
chain operations within our company. With the approach includes: (HVAC) and infrastructure systems with more
advent of our Sustainability Committee, Celgene modern and efficient systems.
Researching and implementing projects to
is encouraging employee participation and Celgene provides education to personnel
reduce environmental impacts that generate
enhancing education with the goal of reducing and ongoing awareness-building activities
measurable and meaningful results.
the companys carbon footprint. Accounting through proactive internal communication on
and measurement strategies are outlined in our Realizing risks and opportunities related to environmental programs and initiatives. This
Carbon Management Inventory Management Plan climate change. awareness builds upon and supports the various
and include references from the World Resources programs that our employee population has
Educating and motivating our employees
Institute Greenhouse Gas Protocol, the Climate a direct impact on, such as waste recycling in
to participate in environmental
Registry, US Environmental Protection Agency offices and daily use of electronic devices for
stewardshipplans.
(EPA) Climate Leaders Greenhouse Gas Inventory businessoperations.
Protocols and the World Business Council for Reporting and disclosing the companys
Sustainability Developments Water Tool. environmental performance and progress.

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 67


Environmental Management Goals

2015 2020 2025


Reduce direct GHG emissions
Begin accounting for other indirect Accomplished Assess emission sources from
GHG emissions Accomplished company facilities and operation
Carbon Reduce indirect GHG emissions - after future scope expansion
Accomplished

Increase renewable energy


Decrease electricity purchasing at Invest in clean and renewable
purchasing at facilities
all facilities technologies directly at our facilities
Energy Accomplished

Invest in precycling and reuse strategies


Increase the quantity of recycling
for additional trash reductions Determine potential of
waste from facilities Accomplished
investments in waste-to-energy or
Purchase all paper-based products with
Waste Reduce the volume of general trash
recycled content
similar projects for facilities as
from facilities well as external endeavors

Evaluate hybrid, electric and Consider conversion of all fleet


Reduce emissions from fleet
biofuel vehicle inclusion into vehicles to hybrid and electric
Transport fleet vehicles
vehicles
vehicles

Reduce water consumption levels


Reduce the impact of water at all facilities
Increase water recovery (recycling
disposal on communities and
and reuse) activities
Water surrounding areas near our facilities Implement water recovery projects
at facilities

68 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


The Celgene Sustainability and Environmental
Compliance policy outlines environmental- Environmental Risks and Opportunities
and climate-related opportunities and risks
and how we consider them within our global Regulatory Requirements Investor Relations
operations and supply chains. Celgene defines Changes in climate-related regulations There are groups of investors worldwide
these risks as situations requiring expedited represent potential risks to the companies that are integrating climate risk into their
strategic decisions from senior management in various countries, and include cap-and- decision making and requiring disclosure and
and opportunities that can have a meaningful trade legislation, state-level greenhouse transparency around climate risk management.
impact upon the company as a whole. gas emission limits and carbon taxes at
Celgenes management and addressing
international operations. These can all lead
We use these perspectives to continue to of environmental issues enhances the
to increased capital and operating costs to
develop appropriate management and action companys reputation with current and future
meet the additional regulatory compliance
plans to address issues related to regulatory, stakeholders and the public.
requirements.
physical and other types of risks and
Supply Chain
opportunities. The scope of the policy includes Some new regulatory requirements
Climate change can affect the availability
situations that arise at Celgene locations and represent an opportunity to reap cost
and sourcing of raw materials and natural
the corporations contractors, partners and savings through facility improvements for
resources that contribute to or impact
other important parties within its supply chain. energy, water, transportation and waste
operations, create commodity price volatility
In addition, Celgenes Business Continuity Plan conservation or an overall decrease in
and disrupt current and future sources
outlines how Celgene and its facilities respond environmental emissions and footprint.
ofsupply.
to disasters and methods to support all critical
Production and Operations Climate-induced disruptions to distribution
business groups.
Energy reliability, availability and costs
networks can affect delivery schedules to
Each facility and business unit is responsible can impact manufacturing and production
patients and cause product interruptions or
for continual awareness of potential situations capability and expenses. This can also
sales losses.
that could impact the site and/or business unit. apply to the availability of water and
Possible situations can include a wide range of materialsources. Local Community
issues, such as (but not limited to) regulatory Climate change can impact local communities
Energy efficiency improvements and
mandates, natural disasters (for example, through natural disasters or other extreme
on-site renewable energy infrastructure can
earthquakes, hurricanes, floods), public service weather, thereby impacting patient populations,
potentially mitigate impacts related to off-
interruption (for example, electricity, water, workforce, suppliers and other stakeholders.
site energy production and disruption.
air travel, roads, railways) and public health
Concern from local communities may exist if
threats. The comprehensive list of identified Production capacities at manufacturing
Celgene does not aim to effectively reduce its
risks and opportunities, as well as the potential facilities could be adversely affected by
environmental footprint, air emissions or water
financial implications, can be found in natural disasters, changes in environmental
consumption levels.
Celgenes CDP Carbon and Water reports. regulations and disruptions to supplies of
critical and/or non-critical raw materials.

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 69


Environmental Investment in New Infrastructure
The expansion of our Corporate Headquarters in To fulfill Celgenes commitment to environmental The roofing system will be comprised of a
Summit is an opportunity to better responsibility, the projects goal is to earn LEED white thermoplastic polyolefin membrane
coordinate employee operations and enhance certification. To attain this recognition, certain to maximize solar reflectance and reduce
inter-connectivity and efficiency across our environmentally-focused attributes have been the heat island effect associated with
franchises. This expansion includes a new integrated into its design and construction. These conventional roof systems.
building that will have enough capacity for an include thefollowing:
More than 80 percent of parking is located
additional 900 employees, a basement parking
Approximately 60 preferred parking spaces under cover, further reducing the heat island
infrastructure and an efficient and modern
will be provided for low-emitting and effect and minimizing the impact on the
interior for workspaces and a food service area.
fuel-efficient vehicles and carpooling. areas microclimate.
This new infrastructure development is expected
to have a positive impact on the local Summit Installation of efficient water fixtures, water Utilization of a cistern tank that will collect
community, which was a chief stakeholder closets and urinals that generate a 40percent rainwater that will be filtered and used for
in the projects plans and development. Our annual savings in water consumption various gray-water activities, such as toilet
communications with local neighbors and compared to baseline building models. and urinal flushing and site landscaping.
the municipality ensured that construction The energy model, which is used to compare Low-emitting adhesives, sealants, paints,
activities minimized impacts on residential living. the design against a minimum code-compliant flooring systems and composite wood
Construction began in the second quarter of building, has generated a theoretical annual products will be installed within the building
2014, progressed quickly through the energy savings of approximately 15 percent. enclosure to promote occupant well-being.
design-build process and will be completed in
December 2015. Installation of landscaping that does not
require a permanent irrigation system.

70 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


Energy Fuel Consumption (GJ) 2012 2013 2014
Our facilities across the world continue to invest Natural Gas 164,868 165,127 166,412
in technologies that represent the forefront
Diesel 1,085 304 219
of modern advancements in efficient energy
consumption for our various operations. These Non-Renewable Fuels Gasoline 145 158 182
strategies include purchasing of efficient lighting
Propane 10.6 7.8 3.0
and infrastructure upgrades and replacements
to minimize our direct energy consumption. Steam - - 1,303
Indirectly, our facilities continue to purchase Wood Pellets (Biomass) 9,316 9,456 9,592
electricity that is derived from certified renewable
energy sources supplied by utilities. Total Fuel Consumption 175,424 175,054 177,710

At the Summit facility, the primary focus


for energy-efficiency utilization was the new
office building and integration of efficient and Electricity Consumption (GJ) 2012 2013 2014
modern HVAC systems, lighting systems that Non-Renewable Electricity 202,777 134,712 140,554
are influenced by daylight harvesting and energy
consumption modeling and tracking. In addition, Renewable Electricity 151 72,905 70,972
the antiquated existing area lights in the parking Total Electricity Consumption 202,928 207,617 211,526
lots and exterior facades were replaced with
high-efficiency light-emitting diode (LED) lighting
systems that are estimated to save 40 megawatt Total Energy Consumption 2012 2013 2014
hours of electricity per year.
Total Energy Consumption (GJ) 378,351 382,671 389,236
At the Boudry facility, the major capital project
Consumption per Employee 117 86.3 81.7
was the optimization of the chilled water
distribution system. This project aimed to reduce Consumption per Facility Area 0.203 0.198 0.185
water consumption and the necessary energy Consumption per Company Revenue (x10-5) 6.87 5.89 5.07
for the chilling and distribution operations by
an estimated 93 megawatt hours per year. In
addition, purchasing of electricity derived from
renewable energy sources at Boudry increased
another eight percent from 2013 levels, the
fourth consecutive yearly increase in this type of
electricity purchasing.

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 71


Water Water Withdrawal by Source (m3) 2012 2013 2014
Water is used for a variety of purposes within Municipal Water Suppliers and Utilities1 392,988 531,286 390,356
Celgene operations, especially in R&D
Rainwater Consumption 1,370 565 1,187
experimentation, laboratory processes and
manufacturing of therapies, as well as personnel External Wastewater 25,576 0 0
consumption, facility cooling operations and
Total Water Withdrawal1 419,935 531,851 391,543
cleaning and maintenance operations. Celgene has
consistently sought opportunities to reduce water
1
S ome withdrawal quantities are based on estimates from US EPA and AQUASTAT data for average water withdrawal rate per
person per day for respective countries.
use in these processes and with the advent of
efficient and cost-effective technology, to reuse and
recycle non-potable water in other consumptive Water Discharge (m3) 2012 2013 2014
facility processes where feasible and practical. Sanitary Wastewater1 274,661 414,865 321,9692
We continue to use the World Business Council 1
S ome discharge quantities are based on estimates from US EPA and AQUASTAT data for average water withdrawal rate per
for Sustainable Developments Global Water Tool person per day for respective countries.
2
This quantity includes 1,510 m3 of water that was reused at the San Francisco facility.
to identify sites in water-stressed regions in order
to consider water-related risks and opportunities,
and determine where our conservation and
management efforts could have the greatest
Water Consumption (m3) 2012 2013 2014
positive impact. This tool has shown that a Total Water Consumption 145,274 116,986 69,584
number of Celgenes operations are in water-
stressed regions where there is potential risk
for tightening of regulations related to limited
water sources. However, we have determined Tejo Basin (Madrid)
Scarce Level
that Celgenes operations require minimal GHAASBasin2117 (Sevilla)
volumes of water and do not significantly affect GHAASBasin947 (Tokyo)
any water sources during the withdrawal and Water Sources at Stress Level
St. Lawrence (Mississauga)
dischargeprocesses. Levels of Stress:
Colorado (Ari) (Phoenix)
The San Diego facilitys new expansion space Medium
GHAASBasin1513 (Bedford)
included the installation of low-flow faucets, Level
Thames (London)
fixtures, water closets and urinals in line with
Level of Stress based on Mean Annual Relative Water Stress Index, University of New Hampshire (2000).
LEED green building program standards. Mean Annual Relative Water Stress Index does not include evaluation data for California locations; it is easily assumed, due to
This standard use of more efficent water the significant drought throughout California since 2014, that water sources at these locations are at the Scarce Level.
features mirrors the use of similar features
incorporated within the original design of the
LEED-certified building.

72 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


Waste and Recycling
Solid and Recoverable Waste Generation (tons)
Celgenes manufacturing, research, office and
all other activities generate waste in the form 2,500 50%
of hazardous, non-hazardous and byproducts. 47
Our processes for reducing these physical types 44
of waste aim to improve our environmental and 2,000 40%
economic bottom line through cost and emission
871

Waste Diversion Rate


savings by using alternative forms of waste 783
collection and disposal. 1,500 30%

tons
Waste management efforts throughout the 533
312 333
company in 2014 focused on more efficient and 1,000 20%
streamlined efforts to redirect non-hazardous 240
solid waste (trash) to recoverable waste streams,
such as recycling and organic waste collection. 500 994 952 10%
721
Particular attention was paid to the education and
motivation of employees, as they are the final line
0 0%
in diverting recoverable waste from solid waste
streams. 2012 2013 2014

Recycling streams are now available in the Incineration Landfill Recycling Organic
majority of our facilities; these recycling
streams focus on common waste types (plastics,
paper, metals, etc.). Collection of organic (or
biodegradable) waste has been incorporated at the Biodiversity There are plans in place to include consideration
of facility impact on biodiversity and land in
Summit and Boudry facilities, with more facilities As we look to expand our operations worldwide, the design of new buildings and the renovation
expected to integrate similar programs by 2020, Celgene will hold itself to protecting and of existing facilities in the future. Some of these
depending upon availability. The employees at preserving biodiversity and respecting nature on plansinclude:
these two facilities have embraced the organics and around our facilities. This includes evaluating
program that collects food waste and paper our operations to comply with international, The Stormwater Pollution Prevention
products from the cafeteria areas. Additional national and local regulations concerning Plan that establishes and communicates
waste diversion has occurred through donation preservation of natural places, promoting awareness of appropriate practices associated
of old or obsolete items from our information open spaces where possible and assessing land with pollution prevention techniques and
technology department, such as computers, usecompliance. materials to divert or prevent stormwater
printers, scanners, etc. contamination.

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 73


The spill response procedures that are used in Transportation
the event of a hazardous chemical spill. Charging Sessions at Facilities
The use of modern and efficient transportation
The waste disposal program that outlines the technologies aims to reduce the quantity of 2,000
procedures for disposing of hazardous wastes emissions from both business operations and
in compliance with the federal Resource personal use.
Conservation and Recovery Act. 1,600 595
Electric and hybrid vehicle charging stations 548

Number of Sessions
The 24-acre Summit campus is adjacent to several are one example of how Celgene has embraced
areas of biodiversity such as Hidden Valley Park such technology. The use of these stations 1,200
and the Houdaille Quarry, both along the border by our employees decreases fossil fuel 489 476
between the City of Summit and the Township of consumption, reduces commuting emissions 800
Springfield. and provides the employees a monetary
The San Diego and San Francisco facilities are savings incentive for utilization of both the 14
stations and these types of vehicles. By the end 400 780 803
not within or adjacent to any areas of high 625
biodiversity value, but it is located within the of 2014 there were a total of 11 stations at
California Floristic Province. This area is home Celgene facilities that were used 1,874 times 0
to a number of threatened endemic species, by employees and the Security department, a 2012 2013 2014
according to Conservation International. rate of 156 sessions per month. The charging
Summit Warren San Diego
station program surpassed both the 3,000 and
In the future, we plan to pursue detailed
4,000 cumulative sessions milestones in 2014,
assessments of our operational impacts on local
logging a grand total of 4,365 sessions since the
and regional biodiversity as well as the impact Celgene provides free shuttle transportation for
programs inception in 2011.
within our supply chains. its employees between its New Jersey facilities
The carpooling program has continued at the and the local mass transportation hub in
New Jersey facilities with participation varying Summit. Employees have the option of using
between 20 to 30 active groups in 2014 due to company-provided shuttle services that run daily
changes in departmental locations throughout at varying intervals. It is the aim of this shuttle
the year. Similar to the charging station program, service to increase mass transportation use for
this program is aimed at reducing traveling employees that may have longer commutes,
emissions while providing carpool groups a thereby further decreasing emissions attributed to
monthly monetary incentive and overall decrease employeecommuting.
in commuting expenses.

74 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


The Boudry facility also has shuttle service for years. The results indicate that individual vehicle
Annual Commuting Distances its personnel that use mass transit at the train ownership and usage take precedence over mass
per Mode (thousand miles) stations located at Neuchatel and Yverdon-les-
Bains in the morning and afternoon. Personnel
transportation with total commuting distance
steadily increasing over the past threeyears.
70 at the Boudry facility also have the option
Air travel is also considered within our
0.8 of participating in a carpooling/ride-share
60 0.7 transportation footprint. We have yet to
5.8 program.
5.3 implement programs related to reducing this
50 8.5 Employee commuting statistics and trends footprint due to the necessity for this type of
thousand miles

8
0.5
40 from scoped facilities were determined from business travel. Future investigations could focus
4.3
5.7 the annual commuting survey, which asked on initiatives to buy carbon offsets from air
30 the type of vehicle employees typically use and travel, partnering with airlines that use alternative
44 47 the average commuting distance. Results from fuels or fuel efficient airplanes or increasing
20
31 the survey were extrapolated to represent the alternatives to long-distance travel, such as
10 entire population of the scoped facilities as well teleconferencingcapabilities when possible.
0 as estimate commuting statistics for previous
2012 2013 2014
Car Truck/SUV Train Bus Air Travel (million miles) 2012 2013 2014
Short Haul (<300 miles) 0.16 0.14 0.03
Annual Employee Travel
Medium Haul (300-2,300 miles) 11.6 11.8 3.96
Commuting Distance, 2012 2013 2014 Distance
All Modes (thousand miles) Long Haul (>2,300 miles) 35.8 43.2 70.7
Canada 582 806 1,149 Canada 0.96 1.25 2.49
France 181 199 242 France 1.26 1.58 1.74
Germany 775 936 1,064 Germany 0.96 1.58 3.29
Italy 451 471 673 Italy 1.06 1.45 1.07
Origin
Japan 1,528 1,899 1,899 Japan 0.05 0.05 0.02
Country
Spain 544 578 757 Spain 1.08 1.37 1.10
Switzerland 8,023 8,527 9,918 Switzerland 8.08 9.50 10.5
UK 2,436 3,618 3,313 UK 3.74 3.48 3.54
US 27,412 40,952 43,060 US 30.4 34.8 51.0
Total 41,931 57,986 62,075 Total 47.6 55.1 74.7

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 75


Carbon Footprint
Scope 1 GHG Emissions by Facility/Region
Celgenes carbon footprint represents all of
the energy, waste and transportation activities
presented in the previous sections. Celgenes 9,000 Summit, NJ
carbon footprint assessment includes Scope 1 8,000 Phoenix, AZ
activities from directly controlled or owned
7,000 San Diego, CA
sources (stationary combustion, mobile

metric tons CO2e


combustion, refrigeration, fire suppression and 6,000 Boudry, Switzerland
laboratory chemical use), Scope 2 activities from 5,000 All Other North America
purchased electricity and steam, and selected 4,000 All Other Europe
Scope 3 activities from business travel, waste 3,000
disposal and employee commuting. Methods
2,000
for determining the resultant carbon footprint
conform to the Climate Registrys General 1,000
Reporting Protocol and the World Resource 0
Institutes Greenhouse Gas Protocol. Our base 2012 2013 2014
year emissions of 2012 and for 2013 were
recalculated due to the extensive change of
reporting scope and boundary.
The various efforts across our facilities worldwide, Scope 2 GHG Emissions by Facility/Region
as well as more accurate accounting, have reduced
our Scope 1 and Scope 2 emissions since 2012. 9,000 Summit, NJ
The largest reduction of emissions in 2014 8,000
came from the utilization of LED lighting at the Phoenix, AZ
7,000
Summit campus, which resulted in a reduction of
metric tons CO2e

approximately 43 metric tons of carbon dioxide 6,000 All Other


equivalent (CO2e). Of prominence in our emission 5,000 North America
reduction efforts is the purchase of electricity
4,000 Europe &
from certified renewable electricity sources, which Japan
reduce Scope 2 emissions to zero at several US 3,000
facilities and by 10 percent at the Boudry facility
2,000
from baseline. In addition, the Boudry facility
continued to use wood pellets for heating, which 1,000
generated only 969 metric tons of CO2e emissions 0
in 2014. 2012 2013 2014

76 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


None of our facilities are regulated based on
regional or industry-wide emission limits. Scope 1 and 2 GHG Emissions by Source
However, the company has identified potential
indirect impacts from some regulations,including:
25,000 Purchased
Assembly Bill 32 (AB32) California Cap and Electricity
Trade Program, which puts limits on emission
20,000 Stationary
from large sources, such as utilities, and Combustion

metric tons CO2e


could impact the electricity and/or natural gas
15,000 Refrigeration &
purchasing expenses for our San Diego and
Fire Suppression
San Francisco facilities.
10,000
The New Jersey Global Warming Response
Act, which sets statewide limits on emissions
and goals for 2020 to 2050 and, similar to 5,000
AB32, could impact the electricity and/or
natural gas purchasing expenses for our New 0
Jersey facilities. 2012 2013 2014

The Boudry facility voluntarily participates


in an energy savings programs with the Emission Statistics 2012 2013 2014
Swiss Private Sector Energy Agency, which
includes committing to the active reduction of Total Scope 1 Emissions (metric tons CO2e) 15,385 9,495 8,831
emissions through energy-efficiency. Total Scope 2 Emissions (metric tons CO2e) 23,874 15,340 14,939
Our facilities did not consume or release any Total Scope 1 and 2 Emissions (metric tons CO2e) 39,259 24,835 23,770
ozone depleting substances for refrigeration
Employee Headcount1 12.1 5.6 5.0
and air conditioning operations in 2014. These Emission Intensity
operations do consume refrigerants that have high Ratios (metric tons Facility Area (sq. ft.) 0.021 0.013 0.011
global warming potential (the measure of how CO2e per unit)
Company Revenue (x10-6) 7.13 3.82 3.10
much heat can be trapped in the atmosphere) and
do represent a potential environmental hazard,
1
Employee Headcount Intensity Ratio is based on both employee and contractor populations.

but contribute only approximately one percent


to Celgenes carbon footprint. A primary part of
Celgenes Refrigerant Management Plans Mission
includes preference for equipment that uses
hydrofluorocarbons, which contain minimal ozone
depletion potential, as alternatives.

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 77


Upstream and Downstream
Scope 3 Emissions from Scope 3 Emissions from
Activities
Waste Disposal Business Travel
The activities that occur within the companys
upstream and downstream value chains are a 2,500 16,000
result of necessary operations that are critical to
both our business and our stakeholders. Celgene 2,000 14,000 648
assesses emissions from these activities in our 936 898

metrictonsCO2e
12,000
value chains using methods from the Greenhouse 1,500

metrictonsCO2e
Gas Protocols Corporate Value Chain (Scope 3) 546 10,000
423 452 1,921
Accounting and Reporting Standard. As of 2015, 1,000
the operations we include for energy, resource and 325 8,000 1,903
emission performance assessment within our value 500 917 879 13,629
665 6,000
chains include:
0 4,000 8,325
Trash disposal of municipal solid waste (see 2012 2013 2014 6,902
Waste and Recycling section for quantities). 2,000
Incineration Landfill Avoided
Employee commuting (see Transportation 0
section for quantities). 2012 2013 2014
Employee commuting levels of the Scope 3 Emissions from Airline Medium-Haul
local shuttle services in New Jersey and
Switzerland. Employee Commuting Airline Long-Haul
Values for emissions from shuttle services and airline
Business travel of the regional shuttle service 25,000 short-haul travel are less than 50 metric tons CO2e each.
1,018
in New Jersey. 687
20,000 4,390
metrictonsCO2e

Business travel via air travel (see 4,106


758 Other Scope 3 emission sources and activities
Transportation section for quantities). 15,000
2,883 not currently included in this inventory require
The emissions from waste (trash) generation via 10,000 more intense research into our operations and,
incineration and land-filling do not contribute a 16,335 17,423 in some cases, thorough communications and
large quantity to the Scope 3 emissions footprint. 5,000 11,651 transparency from business or goods providers
However, this amount would be larger if waste within our supply chain. The eventual expansion
recycling and diversion activities at the facilities 0 of additional Scope 3 emission sources will help
2012 2013 2014
were not in place (this difference is shown in the Passenger Cars Light-Duty Trucks create a more transparent carbon footprint of the
chart as Avoided). Commuter Rail companys global operations.
Values for emissions from Bus and Motorcycle
commuting are less than 50 metric tons CO2e each.

78 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


Compliance Environmental Footprint Summary 2012 2013 2014
At Celgene, we are committed to conforming to Direct Energy Consumption 186,550 175,054 177,710
the standards set forth by environmental rules
and regulations. Celgene EHS professionals Energy (GJ) Non-Renewable Electricity Consumption 202,777 134,712 140,554
routinely complete environmental self-audits at
Renewable Electricity Consumption 151 72,905 70,972
our facilities, including manufacturing, R&D and
administrative offices (as applicable) in order to Water Withdrawal 419,935 531,851 391,553
ensure compliance and that best practices are in
use. Audits include reviews of air quality, water Water (m3) Water Discharge 274,661 414,865 321,969
treatment and waste, both hazardous and non-
Water Consumption 145,274 116,986 69,584
hazardous, handling permits and processes to
minimize environmental risk. Solid Waste 961 1306 1285
Waste (tons)
In 2014, Celgene received no fines or sanctions Recoverable Waste 533 918 828
for non-compliance with environmental laws and
regulations at any facility, nor did any types of Transportation Employee Commuting 41,955,919 58,050,380 62,185,246
significant spills associated with any type of fuel, (miles) Business Travel 47,674,119 55,163,102 74,775,080
waste or chemicals used at our facilities occur.
Celgene continues to adhere to local, regional and Scope 1 GHG Emissions 15,385 9,494 8,831
country regulations concerning environmental Carbon
Footprint Scope 2 GHG Emissions 23,874 15,340 14,939
compliance and has numerous management
best practices in place should a situation arise (metric tons
Scope 3 GHG Emissions 25,230 32,855 38,574
concerning non-compliance. CO2e)
Total GHG Emissions 64,489 57,689 62,344

Environmental Footprint
Summary
The table provides an overview of the quantitative
performance of the companys scoped facilities
over the past three years. We aspire to enhance
the quality of the data we regularly report on in
order to provide a transparent perspective on our
company and the environmental elements we seek
to improve upon year over year.

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 79


Global Reporting Initiative Index
Celgene uses the Global Reporting Initiative (GRI) In some cases, we have adjusted our reporting For this 2015 report, Celgene is following the G4
standard for corporate responsibility reporting to approach to reflect a more accurate depiction In Accordance Core guidelines.
account for indicators and aspects that constitute of Celgenes business model and operations,
a familiar and globally acceptedstandard. but in all cases we respond to the spirit of
theindicator(s).

GENERAL STANDARD DISCLOSURES


General
Standard Description Pages Document Section
Disclosure
STRATEGY AND ANALYSIS

Statement from the most senior decision maker of the organization about the Message from the Chairman and Chief
G4-1 2-3
relevance of sustainability to the organization and its strategy Executive Officer
About Our Company, Patients and
Description of the organizations key impacts on sustainability and effects on
Communities, Commitment to Safety,
G4-2 stakeholders and the impact of sustainability trends, risks and opportunities All
Governance, Global Health, Environment
on the organization
and Sustainability

ORGANIZATIONAL PROFILE

G4-3 Name of the organization 4 About This Report

G4-4 Primary brands, products and/or services 7 Therapeutic Areas

G4-5 Location of the companys headquarters 5 About This Report

G4-6 Number and names of countries where the organization operates 4 About This Report

G4-7 Nature of ownership and legal form 7 A History

G4-8 Markets served 7 Therapeutic Areas


4, 19, About Our Company, Economic Profile and
G4-9 Scale of the organization
49 Performance, Workforce

80 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


GENERAL STANDARD DISCLOSURES
General
Standard Description Pages Document Section
Disclosure
G4-10 Workforce statistics 49-50 Workforce
There are no unions within Celgene and no
G4-11 Employees covered by collective bargaining agreements N/A
bargaining agreements
G4-12 The companys supply chain 58-60 Supply Chain
Significant changes during the reporting period regarding size, structure,
G4-13 7-13 About Our Company
ownership, or supply chain
G4-14 Whether and how the precautionary approach or principle is addressed N/A The precautionary approach is not addressed
Celgene does not subscribe to or endorse any
Externally developed economic, environmental and social charters, principles,
G4-15 N/A external charters, principles or other initiatives
or other initiatives to which is endorsed or subscribed to by the company
for economic, environmental or social aspects.
G4-16 Memberships of associations 15-16 Global Relationships

IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES

G4-17 Entities included in financial statements or equivalent 5 About This Report

G4-18 Process for defining report content and aspects 6 Materiality

G4-19 List of material aspects identified 6 Materiality

G4-20 Material aspect boundaries within the organization 6 Materiality

G4-21 Material aspect boundaries outside of the organization 6 Materiality


No restatements. Revisions to previous years
G4-22 Restatements in previous reports N/A are accounted for due to reporting boundary
expansion where applicable.
G4-23 Significant changes from previous reporting periods 4-6 About This Report, Materiality

STAKEHOLDER ENGAGEMENT

G4-24 List of stakeholder groups engaged 21-22 Stakeholders

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 81


GENERAL STANDARD DISCLOSURES
General
Standard Description Pages Document Section
Disclosure
G4-25 Basis for identification and selection of stakeholders engaged 21-22 Stakeholders

G4-26 Stakeholder engagement processes and frequency 21-22 Stakeholders


Key topics and concerns raised through stakeholder engagement and how the
G4-27 21-22 Stakeholders
company has responded to them

REPORT PROFILE

G4-28 Reporting period 5 About This Report

G4-29 Date of most recent previous report 5 About This Report

G4-30 Reporting cycle 5 About This Report

G4-31 Contact information 5 About This Report

G4-32 GRI content index and in accordance option 80-87 GRI Index
Policy for external assurance and scope and basis for external assurance There is no external assurance provided for
G4-33 N/A
provided this report

GOVERNANCE

G4-34 Governance structure of the organization 42 Company Leadership


Process for delegating economic, environmental and social topics from the
G4-35 43 Sustainability Governance
highest governance body to executives and employees
Executive-level position with responsibility for economic, environmental and
G4-36 43 Sustainability Governance
social topics
Process between stakeholders and highest governance body on economic,
G4-37 43 Sustainability Governance
environmental and social topics
Company Leadership,
G4-38 Composition of the highest governance body and its committees 42-43
Sustainability Governance
Indication of whether the chair of the highest governance body is also an Company Leadership,
G4-39 42-43
executive officer Sustainability Governance

82 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


GENERAL STANDARD DISCLOSURES
General
Standard Description Pages Document Section
Disclosure
Nomination and selection process for the highest governance body and its Company Leadership,
G4-40 42-43
committees and nomination criteria Sustainability Governance
Process in place for the highest governance body to ensure conflicts of interest
G4-41 47 Business Conduct and Ethics
are avoided
Highest governance bodys roles in development and updating of economic,
G4-42 43 Sustainability Governance
environmental and social statements, strategies and goals
Measures taken to enhance the highest governance bodys collective
G4-43 43 Sustainability Governance
knowledge of economic, environmental and social topics
Highest governance bodys role in identification and management of
G4-45 economic, environmental and social risks and opportunities and use of 43 Sustainability Governance
stakeholder consultation
Highest governance bodys role in review the effectiveness of the risk
G4-46 43 Sustainability Governance
management process for economic, environmental and social topics
Frequency of the highest governance bodys review of economic,
G4-47 43 Sustainability Governance
environmental and social impacts, risks and opportunities
Highest committee or position that formally review and approves the Company Leadership,
G4-48 42-43
sustainability report Sustainability Governance
G4-49 Process for communicating critical concerns to the highest governance body 42 Company Leadership
Nature and number of critical concerns communicated to the highest
G4-50 42 Company Leadership
governance body and how they are addressed

ETHICS AND INTEGRITY

Describe the organizations values, principles, standards and norms of


G4-56 44-45 Our Culture
behavior
Internal and external mechanisms for seeking advice on ethical and lawful
G4-57 46-48 Business Conduct and Ethics
behavior
Internal and external mechanisms for reporting concerns about unethical or
G4-58 46-48 Business Conduct and Ethics
unlawful behavior and matters related to organizational integrity

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 83


Boundary Legend: Internal to Celgene External to Celgene Internal and External to Celgene
SPECIFIC STANDARD DISCLOSURES
Material
Disclosure Description Boundary Pages Document Section
Aspect

CATEGORY: ECONOMIC

Economic Profile and


DMA Management Approach overview 19
Performance
Economic Profile and
Economic EC1 Direct economic value generated and distributed 19, 31
Performance, Corporate Giving
Performance
Financial implications and other risks and opportunities for
EC2
the organizations activities due to climate change 69 Environmental Management

EC3 Coverage of the organizations defined benefit plan obligations 50 Workforce

Procurement
DMA Management approach overview 58-60 Supply Chain

Practices Policy, practices and proportion of spending on locally based


EC9
suppliers at significant locations of operation 58-60 Supply Chain

CATEGORY: ENVIRONMENTAL

DMA Management approach overview 71 Energy

Energy
EN3 Energy consumption within the organization 71 Energy

EN5 Energy intensity and metrics 71 Energy

EN6 Reduction of energy consumption 71 Energy

DMA Management Approach overview 72 Water

Water
EN8 Total water withdrawal by source 72 Water

EN9 Water sources significantly affected by withdrawal of water 72 Water

EN10 Volume of water recycled and reused 72 Water

84 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


SPECIFIC STANDARD DISCLOSURES
Material
Disclosure Description Boundary Pages Document Section
Aspect

DMA Management approach overview 73-74 Biodiversity

Operational sites owned, leased, managed in, or adjacent to,


EN11 protected areas and areas of high biodiversity value outside 74 Biodiversity
Biodiversity protected areas
Description of significant impacts of activities, products and
EN12 services on biodiversity in protected areas and areas of high 73-74 Biodiversity
biodiversity value outside protected areas

DMA Management approach overview 76-77 Carbon Footprint

Emissions EN15 Direct greenhouse gas (GHG) emissions (Scope 1) 76-77 Carbon Footprint

EN16 Indirect GHG emissions (Scope 2) 76-77 Carbon Footprint

Upstream and Downstream


EN17 Other indirect GHG emissions (Scope 3) 78
Activities

Emissions
EN18 GHG emissions intensity 77 Carbon Footprint

EN19 Reduction in GHG emissions 76 Carbon Footprint

EN20 Emissions of ozone-depleting substances 77 Carbon Footprint

72-73, Waste and Recycling, Water,


DMA Management approach overview 79 Compliance

EN22 Total water discharge by quality and destination 72 Water

Effluents and EN23 Total weight of waste by type and disposal method 73 Waste and Recycling
Waste
EN24 Total number and volume of significant spills 79 Compliance

Identity, size, protected status and biodiversity value of water


EN26 bodies and related habitats significantly affected by the 72 Water
reporting organizations discharges of water and runoff

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 85


SPECIFIC STANDARD DISCLOSURES
Material
Disclosure Description Boundary Pages Document Section
Aspect

DMA Management approach overview 79 Compliance

Compliance Monetary value of significant fines and total number of non-


EN29 monetary sanctions for non-compliance with environmental 79 Compliance
laws and regulations

DMA Management approach overview 74-75 Transportation


Transport Significant environmental impacts of members of the
EN30
workforce 74-75 Transportation

CATEGORY: SOCIALLABOR PRACTICES AND DECENT WORK

Workforce, Professional
DMA Management approach overview 49-51
Development
Employment
LA1 Total number and rates of new employee hires 50 Workforce

LA2 Benefits provided to full-time employees 50 Workforce

DMA Management approach overview 37 Employee Safety


Occupational Rates of injury, occupational diseases, lost days and
Health and
LA6
absenteeism and number of work-related fatalities 39 Employee Safety
Safety
Workers with high incidence or high risk of diseases related to
LA7
their occupation 37 Employee Safety

CATEGORY: SOCIETYHUMAN RIGHTS

DMA Management approach overview 48 Business Conduct and Ethics


Child Labor Operations and suppliers identified as having significant risk
HR5
for incidents of child labor 48 Business Conduct and Ethics

86 CELGENE 2015 CORPORATE RESPONSIBILITY REPORT


SPECIFIC STANDARD DISCLOSURES
Material
Disclosure Description Boundary Pages Document Section
Aspect

Forced or DMA Management approach overview 48 Business Conduct and Ethics


Compulsory Operations and suppliers identified as having significant risk
Labor HR6
for incidents of forced or compulsory labor 48 Business Conduct and Ethics

CATEGORY: SOCIALSOCIETY

Anti-
DMA Management approach overview 47 Business Conduct and Ethics

Corruption Communication and training on anti-corruption policies and


SO4
procedures 47 Business Conduct and Ethics

DMA Management approach overview 52-57 Public Policy


Public Policy Total value of political contributions by country and recipient/
SO6
beneficiary 57 Public Policy

CATEGORY: SOCIALPRODUCT RESPONSIBILITY

Patient Safety, Clinical


DMA Management approach overview 34-36 Development Process, Risk
Customer Minimization and Management
Health and
Safety Patient Safety, Clinical
Percentage of significant product and service categories for
PR1
which health and safety impacts are assessed for improvement 34-36 Development Process, Risk
Minimization and Management

Product
DMA Management approach overview 34-36 Patient Safety

and Service Type of product and service information required by


Labeling PR3 procedures and percentage of significant products and 34-36 Patient Safety
services subject to such information requirements

CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 87


CELGENE CORPORATE
HEADQUARTERS
86 Morris Avenue
Summit, New Jersey 07901
(908) 673-9000

CELGENE INTERNATIONAL
HEADQUARTERS
Route De Perreux 1
2017 Boudry
CELGENE Switzerland
CORPORATE 41 32 729 85 00
BROCHURE

CELGENE 2014
ANNUAL REPORT

FOR MORE INFORMATION ON


CELGENE CORPORATE RESPONSIBILITY,
PLEASE CONTACT
ZEBA M. KHAN, RPH, PHD
VICE PRESIDENT OF
CORPORATE RESPONSIBILITY
corporateresponsibility@celgene.com
CELGENE 2015 CORPORATE RESPONSIBILITY REPORT 88