This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The True Effect: Positive Findings - Research Report On Celgene Corporation And Gilead Sciences, Inc.

Stocks in this article: CELG GILD

NEW YORK, January 23, 2013 /PRNewswire/ --

Celgene Corporation (NASDAQ: CELG) [ Full Research Report] [1] and Gilead Sciences, Inc. (NASDAQ: GILD) [ Free Research Report] [2] both reported impressive results in the last J.P. Morgan Conference earlier this month, with Celgene corporation outlining a plan that will drive revenue to $12 billion a year by 2017, and with Gilead Sciences announcing promising results on its late-stage pipeline candidates for the treatment of chronic hepatitis C virus (HCV) infection. With both companies showing signs of considerable growth within the next few years, it begs the question: is now a good time to invest in these biotech giants?

Investors have always been cautious to jump at opportunities presented by biotechnology firms because of the high-risk nature of the industry. Positive news from successful clinical trials cause stock prices to rise, while unsuccessful trials can cause them to hit rock bottom. Furthermore, with long research and development (R&D) phases, biotech firms earn little revenue before any of their products are approved by the FDA.

Earlier this month, Gilead went public with its positive results of its late-stage candidates for the treatment of chronic hepatitis C infection (HCV). How profitable can this be for the company? The global market for Hepatitis C is estimated at $2 billion and it is also expected to reach up to $10 billion in the next ten years. If Gilead becomes the first company to get approval for the next generation drug for Hepatitis C, the company will earn significant revenue. The company also earns a significant amount from its HIV franchise. In light of these events, Barclays Capital increased their target price on shares of Gilead from $76.00 to $84.00 last Tuesday.

Meanwhile, Celgene has reported its accomplishments of 2012 and its outlook for 2013. The company is advancing three new programs that will increase revenue from $12 billion a year by 2017. Celgene is currently waiting for the FDA to approve Pomalyst, its multiple myeloma drug. The company is also to file Apremilast and Abraxane for approval later this year. Sales growth for each year between 2013 and 2017 is expected to be 13% for the existing business. 15% will be added from the sales of Abraxane and 19% more from Apremilast.

Since Celgene and Gilead are on their way to secure approvals for their new drugs, both stocks have a high potential to deliver great returns provided that they do not suffer any serious setbacks. Many are optimistic about these stocks, expecting them to shoot up even higher if things unfold as expected for both companies.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs