The editor of The Medical Technology Stock Letter explains, "We remain excited about CELG's growth prospects and management's ability to deliver the goods.
"Total revenue for the quarter grew 50% to $623 million, with the primary driver being Revlimid sales of $369.4 million. Sales of their two other drugs, Thalomid and Vidaza generated $126.8 million and 69.7 million, respectively.
"The company also reiterated their 2009 financial outlook; CELG expects to report earnings in the range of $2.05 per share to $2.15 per share, which is well below analyst's current estimates of $2.18 per share.
"These estimates have been ratcheted down since the first release of the company's guidance when it was $2.29.
"Total revenue is projected to increase 20% to $2.6 billion-2.7 billion in 2009. It is very important to remember that CELG as done a very good job of exceeding analyst's estimates.
"Given the extra breathing room they have created for themselves and the expected strong growth of Revlimid, we expect the company will deliver and exceed their guidance for 2009. The company's 2009 corporate objectives include:
• Maximize the clinical, regulatory and commercial potential of REVLIMID, VIDAZA, Global THALOMID/Thalidomide and Pomalidomide into nearly 75 countries.
• Leverage clinical potential of Activin Biology by completing Celgene/Acceleron Phase II Study of ACE-011 in Multiple Myeloma Patients With Cancer-Related Bone Loss, as well as Initiating Phase II Study of ACE-011 in Metastatic Breast Cancer .
• Complete First-in-Class JNK Inhibitor CC-930 Phase Ib Multiple Dose Study in healthy volunteers leading to clinical development programs in serious fibrotic diseases.
• Complete Phase I Proof-of-Principle Study for Proprietary PDA-001 Placenta-Derived Stem Cells in Crohn's Disease.
• Submit REVLIMID regulatory filing for Multiple Myeloma (MM) and Del 5Q MDS in Japan .
• Advance REVLIMID Lymphoma Initiative through more than 46 clinical trials worldwide Including initiation of Non-Hodgkin's Lymphoma (NHL) Phase III SPA Trial in MCL Maintenance Study, as well as Pivotal Phase II SPRINT Trial in Relapsed/Refractory MCL Study.
• Advance REVLIMID Leukemia Initiative through more than 35 clinical trials worldwide including Initiation of Phase III SPA ORIGIN trial (CLL-008) in untreated, elderly patients, the largest patient population in CLL, and Advancing Phase III SPA CONTINUUM Trial in Maintenance CLL.
• Advance Lead Solid Tumor Candidate Amrubicin Phase III Clinical Study in Small Cell Lung Cancer.
"We remain excited about CELG's growth prospects and management's ability to deliver the goods. Of all the drugs that appear on Big Pharma's 'wish list' one has to believe that Revlimid is at or near the top. Given Big Pharma's need to plug revenue holes, CELG could be just the right fix. CELG is a buy under $73."
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