NEW YORK (TheStreet) -- Celgene (CELG) - Get Report shares closed trading up 2.68% to $123.43 in trading on Friday, nearing its all time high of $124.60, after the European Commission approved the use of the company's Revlimid (lenalidomide) treatment for adult patients with previously untreated multiple myeloma who are transplant ineligible.
The news comes one day after the company announced that the FDA expanded the existing indication for the treatment. Revlimid had previously received approval for the treatment of multiple myeloma patients who had received at least one prior treatment.
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The FDA said that the treatment can now be used in conjunction with dexamethasone for newly diagnosed myeloma patients.
Multiple myeloma is a life-threatening blood cancer that affected 38,900 in Europe in 2012, 24,300 of whom succumbed to the disease.
TheStreet Ratings team rates CELGENE CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CELGENE CORP (CELG) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, robust revenue growth and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Powered by its strong earnings growth of 196.00% and other important driving factors, this stock has surged by 44.16% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CELG should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- CELGENE CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CELGENE CORP increased its bottom line by earning $2.40 versus $1.69 in the prior year. This year, the market expects an improvement in earnings ($4.80 versus $2.40).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Biotechnology industry. The net income increased by 186.3% when compared to the same quarter one year prior, rising from $214.40 million to $613.90 million.
- CELG's revenue growth trails the industry average of 38.4%. Since the same quarter one year prior, revenues rose by 18.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Biotechnology industry and the overall market, CELGENE CORP's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- You can view the full analysis from the report here: CELG Ratings Report