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.

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