The True Effect: Positive Findings - Research Report on Celgene Corporation and Gilead Sciences, Inc.
After reporting successful clinical trials at the 31st annual J.P. Morgan Healthcare Conference earlier this month, prices for Celgene and Gilead Sciences both rose significantly. Should investors take a shot at these two promising drug makers?
NEW YORK, January 23, 2013 /PRNewswire/ --
Celgene Corporation (NASDAQ: CELG) [Full Research Report] and Gilead Sciences, Inc. (NASDAQ: GILD) [Free Research Report] both reported impressive results in the last J.P. Morgan Conference earlier this month, with Celgene corporation outlining a plan that will drive revenue to $12 billion a year by 2017, and with Gilead Sciences announcing promising results on its late-stage pipeline candidates for the treatment of chronic hepatitis C virus (HCV) infection. With both companies showing signs of considerable growth within the next few years, it begs the question: is now a good time to invest in these biotech giants?
Investors have always been cautious to jump at opportunities presented by biotechnology firms because of the high-risk nature of the industry. Positive news from successful clinical trials cause stock prices to rise, while unsuccessful trials can cause them to hit rock bottom. Furthermore, with long research and development (R&D) phases, biotech firms earn little revenue before any of their products are approved by the FDA.
Earlier this month, Gilead went public with its positive results of its late-stage candidates for the treatment of chronic hepatitis C infection (HCV). How profitable can this be for the company? The global market for Hepatitis C is estimated at $2 billion and it is also expected to reach up to $10 billion in the next ten years. If Gilead becomes the first company to get approval for the next generation drug for Hepatitis C, the company will earn significant revenue. The company also earns a significant amount from its HIV franchise. In light of these events, Barclays Capital increased their target price on shares of Gilead from $76.00 to $84.00 last Tuesday.
Meanwhile, Celgene has reported its accomplishments of 2012 and its outlook for 2013. The company is advancing three new programs that will increase revenue from $12 billion a year by 2017. Celgene is currently waiting for the FDA to approve Pomalyst, its multiple myeloma drug. The company is also to file Apremilast and Abraxane for approval later this year. Sales growth for each year between 2013 and 2017 is expected to be 13% for the existing business. 15% will be added from the sales of Abraxane and 19% more from Apremilast.
Since Celgene and Gilead are on their way to secure approvals for their new drugs, both stocks have a high potential to deliver great returns provided that they do not suffer any serious setbacks. Many are optimistic about these stocks, expecting them to shoot up even higher if things unfold as expected for both companies.
With these companies on a high, Celgene currently trades at $99.31, while Gilead is priced at $77.91.
 The Full Research Report on Celgene Corporation - including full detailed breakdown, analyst ratings and price targets - is available to download free of charge at: [http://www.nationaltradersassociation.org/r/entire_report/5e17_CELG]
 The Free Research Report on Gilead Sciences, Inc. - including full detailed breakdown, analyst ratings and price targets - is available to download free of charge at: [http://www.nationaltradersassociation.org/r/entire_report/6e69_GILD]
Consider National Traders Association
Tired of hearing about the latest, greatest trade opportunity... only to realize that the ship has long sailed? You need a strong, informative community in your arsenal. Join the group that has been consistently identifying momentous situations as they develop -- long before they become the next top news on major financial networks.
Contact: Demi Lapierre
SOURCE National Traders Association
More by this Source
Housing Boom Sparks Home Improvement - Research Report on The Home Depot, Inc., Lowe's Companies, Inc., Lumber Liquidators Holdings Inc, Sherwin-Williams Company and Tractor Supply Company
Feb 21, 2013, 08:00 ET
Outlook on Consumer Durables - Research Report on Stanley Black & Decker, Inc., Whirlpool Corporation, Newell Rubbermaid Inc., Tupperware Brands Corporation, and Snap-on Incorporated
Feb 21, 2013, 08:00 ET
Renewed Domestic Growth, Technology and Opportunity - Research Report on Marriott International, Inc., Starwood Hotels & Resorts Worldwide, Inc., Hyatt Hotels Corporation, Vail Resorts, Inc., and Marriott Vacations Worldwide Corp.
Feb 21, 2013, 08:00 ET
Browse our custom packages or build your own to meet your unique communications needs.
Learn about PR Newswire services
Request more information about PR Newswire products and services or call us at (888) 776-0942.