Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Pharmacyclics, Inc. (PCYC), Gilead Sciences, Inc. (GILD), Celgene Corporation (CELG): This Small Company Is Winning the War Against Blood Cancer

Comparison

As competition to ibrutinib, companies like Gilead Sciences, Inc. (NASDAQ:GILD) and Celgene Corporation (NASDAQ:CELG) focus on developing products in the field of CLL therapies.

Idelalisib (GS-1101) from Gilead Sciences, Inc. (NASDAQ:GILD) is currently in a phase 3 trial for CLL, and in phase 2 trials to treat indolent non-Hodgkin’s lymphoma, or iNHL. The product is a PI3K inhibitor and blocks the PI3K pathway, which is responsible for the development of cancer cells. Gilead Sciences, Inc. (NASDAQ:GILD) is focused on speeding up the development process for iNHL therapy. This will possibly make an opportunity for ibrutinib to target CLL.

By performance, in the recent quarter that ended June 30, Gilead Sciences, Inc. (NASDAQ:GILD) reported total revenues of $2.77 billion, up by 15% over the $2.41 billion seen in the same period a year ago, resulting from a 14% year-over-year increase in product sales. In addition, adjusted income was $839.7 million, or $0.50 per diluted share, compared to $767.3 million, or $0.49 per diluted share, in same period last year.

Another well-known product, Revlimid from Celgene Corporation (NASDAQ:CELG), is currently in phase 3 study for CLL therapy. The same product is approved for the treatment of multiple myeloma and has filed an NDA for lymphoma. It becomes easier for Celgene Corporation (NASDAQ:CELG) to promote the same product for additional indications, creating potential for higher prescription sales. In the recent quarter, Revlimid posted sales of $1 billion, up by 13% due to increased sales from both the U.S. and international markets.

Overall, Celgene Corporation (NASDAQ:CELG)’s total revenues were up by 14% year over year to $1.6 billion, adjusted net income was up by 20% to $653 million, and adjusted diluted EPS was up by 25% to $1.52 from $1.22. The company has raised EPS guidance for the full year, backed by strong acquisitions and new positive reports on the Revlimid study.

Conclusion

Upon commercialization, Pharmacyclics will also receive royalties on sales of ibrutinib. If approved for additional indications, that too will boost the bottom line. In addition, its strong collaboration with Janssen and Novo Nordisk is very important for an investment thesis.

The article This Small Company Is Winning the War Against Blood Cancer originally appeared on Fool.com and is written by Kanak Kanti De.

Kanak Kanti De has no position in any stocks mentioned. The Motley Fool recommends Celgene and Gilead Sciences.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.