For Celgene Corporation (NASDAQ:CELG), the big driver for growth lately has been multiple myeloma drug Revlimid. With more than a decade to go before its patent expires, Revlimid’s $3.7 billion in sales during 2012 stand only to increase over time. Johnson & Johnson (NYSE:JNJ) has a competing drug in the space, Velcade, but even with its fast growth, industry analysts expect Revlimid to maintain its competitive advantage well into the future.
The rest of its drug lineup has been a mixed bag for Celgene. Vidaza is still its No. 2 seller despite having lost patent protection, but that could change at any point if a generic competitor comes into the market, which Celgene expects by the beginning of 2014. Moreover, earlier this month, Celgene’s phase 3 trial of psoriasis drug apremilast produced disappointing results, as a lower proportion of patients reached the trial’s end goals than in previous phase-2 trials. With efficacy levels more than double what apremilast was able to achieve, AbbVie Inc (NYSE:ABBV)‘s Humira seems poised to retain its blockbuster status, even though apremilast met its primary endpoint and could be part of an application for FDA approval later this year.
But Celgene Corporation (NASDAQ:CELG) hasn’t been afraid to take risks in order to boost its prospects. The $2.9 billion that Celgene spent to buy Abraxis and its Abraxane treatment for metastatic breast cancer in 2010 represented a big gamble at the time, and so far, sales of the drug haven’t climbed very quickly. But with multiple ongoing studies looking to expand the drug’s use to treat other diseases, Abraxane has substantial potential, especially in the difficult-to-treat pancreatic cancer area.
For retirees and other conservative investors, Celgene’s high valuation and lack of dividend make the stock a departure from the usual fare for a retirement portfolio. Only if you’re comfortable with Celgene Corporation (NASDAQ:CELG)’s future growth prospects would it make sense for you to consider adding the biotech as part of the more speculative side of your investment strategy.
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The article Will Celgene Help You Retire Rich? originally appeared on Fool.com.
Fool contributor Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Johnson & Johnson.
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