Celgene Corp (CELG)

Firesale (< 20) Submitted: 10/04/07 3:13 PM : Start Price: $71.93 CELG Score: 9.89

The Fight Against Cancer

Since 1988 Celgene received FDA approved for Thalomid to treat leprosy-related conditions and multiple myeloma (MM). Thalomid is being studied in numerous clinical trials for the treatment of myelodysplastic syndrome (MDS), prostate cancer, and renal cell carcinoma.

In 2005, CELG announced FDA approval of Revlimid (the company's primary IMiD) to treat MDS patients with a rare chromosomal deletion. This is there leading drug, and is being studied for multiple myeloma, amyloidosis, non-Hodgkin's lymphoma, and various solid tumor cancers.

Sales Growth: 67%
Income Growth: 471%
Net Profit Margin: 13%
Minimal Debt

3-Year Earnings Per Share: 93%
3-Year Sales Rate: 52%

Celgene has a strong pipeline beyond Revlimid, including drugs that could treat diseases such as asthma, psoriasis, and prostate cancer. Revlimid recently received approval for multiple myeloma in the EU and Swissmedic approved its oral cancer drug the first oral therapy in Switzerland for multiple myeloma patients in more than 40 years. Leading Wall Street analysts see Revlimid achieving $2.8 billion by 2011 and when you consider that Revlimid has a 95% gross margin the long-term outlook look positive. Over 100 trials are in the works. Celgene has an expected 10-year average sales growth of 21%, fueled by explosive growth.

The fourth quarter is historically positive for biotechnology and pharmaceuticals. If the economy tanks, individuals still have to buy their medications, and drug companies become a safe haven and you feel good about supporting research and development that improves the quality of life for others less fortunate. After hitting a new 52-week high Celgene is a winner and looks to be the next Genentech.

Report this Post Replies: 0 | Reply