Opportunity Abounds for Celgene (CELG) in Multiple Segments - Cramer

March 26, 2013 8:58 AM EDT

Jim Cramer

Celgene Corp (Nasdaq: CELG) is ticking higher amid positive comments from stock wunderkind Jim Cramer.

Cramer said that tides have shifted in Big Pharma. Names like Bristol-Myers Squibb (NYSE: BMY) used to be at the forefront of innovation, but as patents continue to expire, smaller outfits might be a better bet for investors.

Growth at Celgene is nearly 23 percent per year, Cramer noted. Despite a recent surge, the stock is still going for just 16 times expected earnings, or 8.6 times FY15 earnings expectations.

But, what makes Celgene so good?

Cramer made three points: first, Celgene has a winner in its blood cancer treatment Revlimid. New indications for the drug might turn it into a $6 billion business.

Next, Celgene's breast cancer treatments might also have expanded indications, like pancreatic cancer, for instance. There might be $1.5 billion of turnover available here.

Finally, Cramer thinks Celgene has a $3 billion opportunity in its arthritis anti-inflammatory portfolio.

Into the open Tuesday, Celgene is up about 0.8 percent.

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