This Day On The Street
Continue to site
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

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

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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.40 -1.50%
FB $116.22 -0.44%
GOOG $691.59 0.08%
TSLA $241.07 -2.70%
YHOO $36.31 -0.77%


Chart of I:DJI
DOW 17,677.25 -153.51 -0.86%
S&P 500 2,057.17 -18.64 -0.90%
NASDAQ 4,755.0480 -50.2430 -1.05%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs