Three of the biggest names in biotechnology have reported earnings, and their quarters involved very important drug-related information for investors. In this article, let’s look at which of these stocks might be presenting an investment opportunity.
Far Too Early For Decelerated Growth
Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN) markets an orphan drug called Soliris, which treats both a genetic and a blood disorder. Soliris is Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN)’s sole product, and it’s being tested in five other clinical studies to evaluate its ability to treat other rare diseases.
Since Soliris is the company’s sole product, and the most expensive drug in the world at $500,000 annually, investors were eager to see its growth rate. Unfortunately, Soliris was a bit disappointing, as total sales grew just 35% year over year.
Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN)’s revenue growth of 35% is its slowest pace in several years. The company is currently guiding for full-year sales of $1.52 billion. Wall Street expects Soliris to exceed $3 billion in peak sales, but with growth decelerating, investors may worry whether expectations will ever become a reality.
An Unwatched Growth Driver
Celgene Corporation (NASDAQ:CELG)’s multiple mylenoma drug Revlimid is the company’s bread and butter, contributing $1.05 billion of its $1.59 billion in quarterly sales.
Revlimid grew 13% year over year during this last quarter, showing there’s still upside for the blockbuster drug.
Over the last month, there had been whispers among investors that Revlimid sales could struggle to produce double-digit growth. However, Celgene Corporation (NASDAQ:CELG) proved that Revlimid sales are still strong, with full-year sales guidance of $4.3 billion.
On a side note, I was interested to see the performance of its new multiple myeloma drug Pomalyst, for the treatment of those who have failed two prior therapies. Analysts peg peak sales for the drug at $1 billion annually, and due to synergies with Revlimid, many believe it could spark Celgene Corporation (NASDAQ:CELG)’s next round of growth.
Therefore, I was quite encouraged with $66 million in Pomalyst’s first quarter of sales, which is far above my expectations of $50 million. Hence, Pomalyst will be interesting to watch throughout this year as a possible growth driver.