The baby boomers — those nearly 80 million Americans born between 1946 and 1964 — are starting to get old. Indeed, the first boomers already are into retirement age, meaning a great many more folks are going to start to suffering from a wide range of acute and chronic illnesses.
Fortunately, biotech companies like Celgene (NASDAQ:CELG), based in Summit, N.J., are hot on the trail of the next generation of drugs. Celgene, which specializes in therapies to treat cancer and immune-inflammatory related diseases, will only see its customer base expand as America gets grayer.
Celgene boasts a strong portfolio of cancer-fighting drugs, including Vidaza, Evlimid, Thalomid, Istodax and Abraxane, and it has more in the pipeline. Additionally, the company is developing new therapies for psoriasis, rheumatoid arthritis, pulmonary fibrosis, lupus, Crohn’s disease and multiple sclerosis — among other ravages of old age.
True, shares have lagged the broader market through the first half of 2012, but there are ample potential catalysts in the not-too-distant future. Taken together, the company has about 15 drugs in the development pipeline that could gain regulatory approval through 2015.
Furthermore, Celgene, which employs more than 4,400 people, is forecast to grow earnings by 15% this year and more than 10% next year. Not bad for a company with a market cap of more than $27 billion.
Beyond that, the premier biotech’s fortunes look bright — if only because it’s certain to have no shortage of customers.
Check out the complete list of Real America Index components, along with an interactive map of short-term and long-term returns.
As of this writing, Dan Burrows did not hold a position in any of the aforementioned securities.