Celgene Corp (CELG)

One of the fastest growing biotechs with relatively recent approval of Revlimid, which, I believe will be rapidly accepted and will have increasing indications shortly. Analysts have not fully priced in the implications of these increasing indications. Pipeline includes IMID's. Although the trailing 12 month PE is very high, this is PAST HISTORY. Company expected to grow over 100% this year, even by conservative analyst expectations. It has just entered the mid-large cap realm, has recently been added to S&P 500, has raised over one billion dollars in cash (by selling stock from it's treasury at market price to funds that needed stock to comply with ETF, mutual fund requirements as a result of being added to the S&P), to fund future research, also not reflected yet on income statements.

Revlimid has only been approved for 6 months now and many new cancers, blood disorders, and other immune related diseases are in trials with Revlimid for future approval of this drug to treat them. Similar

Celgene is a biopharmaceutical company focused on novel therapies to treat a broad range of hematopoietic, immunological, neuronal, and cancerous conditions. Celgene currently markets Thalomid for ENL and multiple myeloma, Revlimid for myelodysplastic syndromes and multiple myeloma, Alkeran for multiple myeloma, and Focalin/Focalin XR for attention deficit disorder.

The company has posted impressive results for fiscal 2006 with its topline growing 67% from $536.5 million to $898.9 million. The key driver for this stock in the medium term would be the performance of its potential block buster drug, Revlimid. The drug, mostly prescribed for multiple myeloma, could exceed $2 billion in annual sales within a few years if it is approved for additional disease categories. The additional clinical data for Revlimid in chronic lymphocytic leukemia (CLL) has also been encouraging, influencing the optimism for the same.

Celenge is bound to have strong 2007 on back of robust performance of Revlimid. However many a times stock prices run ahead of fundamentals and this seems to be a perfect example of that. The stock is trading at around 300 times its fiscal 2006 earnings which is much ahead of its peers. The stock has appreciated more than 50% in the last year. Thus it seems that the market has already discounted the promising future of the company. Moreover it seems that the current stock price has not built in potential regulatory risks and the risks associated with clinical trials. Thus the stock despite being on growth trajectory and promising future may not out perform the market.

Just as Obama enthusiasm for stem cell stocks is senseless, Obama pessimism for pharmaceuticals is overblown. I don't believe his policies will fundamentally change the business model or profitability of mid-to-large cap biotechs, and I see this as another opportunity to green thumb some quality companies at depressed prices.

Revlimid growth for treatment of myeloma, mds and other cancers (18%).
Thalomid used for treatment of varions cancers and leprosy (59%).
Alkeran and Focalin (10%) myeloma and ovarian cancer, attention deficit hyperactivity disorder, resp.
Cash flow $62.7 million (twice net income)
Recent and expected approvals will lead to greater demand.

Had its run and will fall out of favor with investors.

Celgene is the leader in potential cancer drugs with approx. 128 in the pipeline. With companines like PFE and MRK sitting on large piles of cash there is a takeover possibility but even without that this is a company with a huge future.

10/2006

94

Earnings Per Share (EPS) Rating
97
Relative Price Strength (RS) Rating
88
Industry Group Relative Strength (Grp RS) Rating
A-
Sales + Profit Margins + ROE (SMR) Rating
A
Accumulation/ Distribution (Acc/Dis) Rating
B-

CELG is a tranformational biotech company that now has 2 successful hemotological cancer drugs on the market: Revlimid and Thalomid. CELG has had an impressive run over the past 5 years but is just now showing explosive earnings growth in conjunction w/this year's launch of Revlimid. Of particlular note, CELG is expecting EU approval for Revlimid within the next 6 months and has said Revlimid shows particular promise for other indications besides multiple myeloma and MDS. It also has several other "imid" drugs in development that should greatly reward shareholders of this terrific company for years to come!

Believe growth prospects to be superior to most stock in its sector.

Good bio-tech company. Will likely be bought by a bigger company.

CELG has gained in revenue in the past year. Its primary drug is under competetive pressure but it has more products in developmnet AND - the 2006 revenue bump and stock price increase will fuel probable acquisitions to carry the trend forward.

great pipeline, better management

I rode this company (in real life) from 39 all the way up and then split back down and back to the 50's and sold it. I made over 100% profit and enjoyed the run and I think that Celgene was the #1 stock of 2006 and will continue to be that way for at least the first half of 2007. Celgene's imminent approval in Japan for Revlimid, Thalomid, and others will propel the company up to status among the bigger biotech companies like Amgen, Genentech, etc.

Good valuations, recent praise from a big-time money manager, and a solid balance sheet make this company very appealing

lots of new indications for use of their drugs, both for oncology and neurology.

Much off-labeling being prescribed.

This hit a 52 week low today and looks cheap.

Their two primary drugs, Thalmid and Revlimid, have gained wide acceptance and they've done a good job of getting MDs on board to prescribe the drug. They have a strong vision of growth with a promising pipeline.

great stock caught in the Obama web of health care reform. It will outperform.