Celgene Corporation (CELG) Soars in 2013; What Does the Future Hold?

Page 1 of 2

The biotechnology industry is one of the favorite industries for investing in up-and-coming companies. A lot of them offer promise, but few end up making it to the finish line. In this article, I will discuss why Celgene Corporation (NASDAQ:CELG) has been so strong and why it will continue to do so in the future. Before we get to that, let’s go over an example of how the biotechnology industry can provide big rewards, but also big risk.

Celgene Corporation (NASDAQ:CELG)

High Risk, High Reward

One of the hottest stocks of 2012 and January 2013 was Celsion Corporation (NASDAQ:CLSN).  The company was completing its Phase III trial of ThermoDox. As the chart below shows, Celsion had run up several hundred percent heading into January 2013 when it was scheduled to announce its results.

However, when Celsion announced the Phase III results on January 31, 2013, the results were a complete disaster. The official announcement contained the dreaded words that the trial failed to meet the primary endpoint in the liver cancer study. After all the hype and promise that investors were banking on, the share price collapsed by more than 80%. This is a cautionary tale of risk and the need for investors to risk only what they can afford to lose, especially when dealing with biotechnology stocks.

Celgene’s Recent Rise

For a large-cap stock, Celgene Corporation (NASDAQ:CELG) has had one of the most impressive runs over the past 52 weeks. As the chart below shows, Celgene has had a heck of a run.

Celgene shares have increased by more than 86% during the previous 52 weeks. This compares extremely favorable to both the overall market and the most popular biotech ETF, iShares Dow Jones US Pharmaceuticals. IHE has shown a return of approximately 25% over the past 52 weeks. Celgene Corporation (NASDAQ:CELG) has appreciated because of new drugs and strong earnings. One of Celgene’s most anticipated drugs is Abraxane, used in advanced stages of pancreatic cancer. On May 30, 2013, the FDA granted priority review for Abraxane in combination with gemcitabine for first-line treatment of patients with advanced pancreatic cancer. If the company can manage to get FDA approval, the shares will likely see a significant pop.

Fundamentally, Celgene appears to be sitting in a fairly strong position as well. The company reported first-quarter earnings on April 24, 2013. The results were very favorable. It also provided a guide as to how the company can continue to outperform well into the distant future. For the first quarter 2013, Celgene Corporation (NASDAQ:CELG)’s revenue totaled $1.46 billion, a 15% increase compared to the first quarter 2012.  A few highlights include the following:

–REVLIMID sales for the first quarter increased by roughly 16% to $1 billion and were driven by overall market share gains and increased duration of therapy.

–VIDAZA first quarter sales increased by roughly 10% to $204 million. Sales were driven by increased demand in the U.S., Europe and Latin America.

Page 1 of 2

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!