Celgene (CELG) Jumps On Positive Barron's Article
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An article entitled "From Bane to Blockbuster" published in this weekends edition of Barron's highlighted several ideas that could encourage investors to buy shares of Celgene (Nasdaq: CELG).
Barron's believes Celgene has become one of the premier integrated biopharmaceutical companies and backs this claim up by mentioning that the Company has grown EPS over the last five years by nearly 40%, almost double that of its top competitors Genentech (NYSE: DNA) and Gilead Sciences (Nasdaq: GILD). This growth does not appear to be faltering either, as Celgene recently guided its FY08 EPS in the range of $1.50-$1.55, a 44.7% increase from EPS of $1.05 last year.
The article argues that Celgene's strong drug pipeline should keep its stock outperforming peers over the next several years. First, Barron's notes that while its lead drug Revilmid has only been approved by the FDA for the treatment of multiple myeloma in patients previously diagnosed with such conditions, its trials are going so well that doctors have already began prescribing the drug to new patients. Specifically, about 87% of patients treated with Revilmid in trials survived for two years after beginning therapy with the drug. Newly diagnosed patients represent huge potential as these patients make up about 50% of the market for such treatments.
Next, Barron's brings to attention a Celgene product which recently reported strong results in Phase-II trials for the treatment of psorasis: Apremilast. One analyst said that by 2013, sales of Apremilast could peak near $1.1 billion annually.
Lastly, the Barron's article says that Celgene should benefit from new products related to the Company's stem cell program. Celgene recently asked the FDA for approval to begin conducting human trials on drugs within this branch. Celgene's Founder and CEO, Sol Barer, quoted in the article, believes that this segment has "immense potential".
Shares of Celgene are benefiting from the positive Barron's article and are up about $2, or 3.8%, today.
Barron's believes Celgene has become one of the premier integrated biopharmaceutical companies and backs this claim up by mentioning that the Company has grown EPS over the last five years by nearly 40%, almost double that of its top competitors Genentech (NYSE: DNA) and Gilead Sciences (Nasdaq: GILD). This growth does not appear to be faltering either, as Celgene recently guided its FY08 EPS in the range of $1.50-$1.55, a 44.7% increase from EPS of $1.05 last year.
The article argues that Celgene's strong drug pipeline should keep its stock outperforming peers over the next several years. First, Barron's notes that while its lead drug Revilmid has only been approved by the FDA for the treatment of multiple myeloma in patients previously diagnosed with such conditions, its trials are going so well that doctors have already began prescribing the drug to new patients. Specifically, about 87% of patients treated with Revilmid in trials survived for two years after beginning therapy with the drug. Newly diagnosed patients represent huge potential as these patients make up about 50% of the market for such treatments.
Next, Barron's brings to attention a Celgene product which recently reported strong results in Phase-II trials for the treatment of psorasis: Apremilast. One analyst said that by 2013, sales of Apremilast could peak near $1.1 billion annually.
Lastly, the Barron's article says that Celgene should benefit from new products related to the Company's stem cell program. Celgene recently asked the FDA for approval to begin conducting human trials on drugs within this branch. Celgene's Founder and CEO, Sol Barer, quoted in the article, believes that this segment has "immense potential".
Shares of Celgene are benefiting from the positive Barron's article and are up about $2, or 3.8%, today.
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