Celgene (CELG) is a specialized biotech company that focuses on treatments for small patient pools suffering from cancers and blood disorders. While there may not be a whole lot of candidates for Celgene’s drugs, the reality is there aren’t a lot of alternatives, and the treatments are very costly — and thus, high-margin products.
Celgene kicked off 2012 with a bunch of analyst upgrades and high hopes for its product pipeline, which includes new treatments for cancer and inflammatory diseases. And while the stock appears to be aggressively valued based on current profits, it’s undeniable that there is a lot of potential in future sales.
Celgene is growing its sales at roughly $1 billion a year. And consider this: 2012 profits were a little less than double 2010 profits, 2013 profits should be roughly double 2011 numbers, and projections for 2014 are roughly double what CELG earned in 2012.
A company that is expected to double its profits every two years is clearly a powerful investment, and Wall Street has already targeted CELG as one of its best stocks so far this year.