Celgene Corp (NASDAQ:CELG)

great pipeline, better management

safe hedge

Potential for being bought out

Approval of Revlimid in EU will push earnings above analysts estimates. Growth of pipeline will become more evident in the next few years

Look at the past 3 years and project that growth forward.

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.

market performed

I've been watching this company for quite a while and they seem to keep plugging away.

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.

Corner market, good management ,upside potential of around 10% in fair value calculations

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.

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

a leader in biotech. one of the best positioned for research breakthroughs both large & small.

good products and great pipeline and great eu potential

past and current performance, market potential, and management strength.

revlimid will displace thalidomide, since it is an analogue that is 1000 times more potent and much better tolerated, ergo any concerns about a generic thal are unwarranted.

Take a look at CELG long term chart

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