Here is How Celgene Corporation (NASDAQ:CELG) Raised its Stocks

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By Martin Foley on November 7, 2014 BioPharma, Company

As soon as Celgene (NASDAQ:CELG) – the prominent biopharmaceutical company – reported earnings results that were unexpectedly well, and updates of its study of Crohn’s disease which went encouraging enough, it shares increased by 13% in the previous month as reported by S&P Capital IQ.

Vey recently Celgene (NASDAQ:CELG) reported its third-quarter earnings reports and growth in earnings, little cost-cutting and refraining from taking buyback measures were major highpoints of the report.

With the start of the new quarter, Celgene (NASDAQ:CELG) is set up to achieve its set objectives. Celgene (NASDAQ: CELG) expects its sales to rise up to $1.98 billion which is an 18% increase and its profit per share to jump to $0.97 which is a 24% rise. Whereas the revenue forecast remained the same at $7.6 billion, the company forecasted a rise in profits from $3.60-$3.65 per share to $3.65-$3.70 per share as well as a rise in Earnings per share.

With an increase in sales for most of its products, as evident from the increase in sales of the blood cancer drug Revlimid by 19%, another cancer drug Abraxane by 25% and sales of myeloma drug Pomalyst/Imnovid, doubling over the years, Celgene (NASDAQ:CELG) expects further growth almost across the board. One reason Celgene (NASDAQ:CELG) attributes to its improved results is the increased demand for its products with the remainder coming from U.S. price increases.

Besides an expected earnings, the initial reports on Celgene’s (NASDAQ:CELG) study of Crohn’s disease was also a factor for the rise in the stocks of the company. The initial reports of the experiment carried out by Celgene (NASDAQ:CELG) for testing the efficiency of GED-0301 were curious enough to be noticed. Three doses were given to three experimental groups along with another control group. The doses amounted to 10mg, 40mg and 160mg. The first group who were given the 10mg dose demonstrated no significant change but the other groups demonstrated significant effects from the drug.

Thus it was confirmed that a specific amount of the drug GED-0301 could be effective for the patients to relieve them from pain. With the results showing that Celgene’s new drug can be effective, it seems like Celgene (NASDAQ:CELG) has got a potential blockbuster which could further boost its stock value. An important lesson here is that Celgene (NASDAQ:CELG) unlike many great companies is not trying to rise its earnings through cost-cutting measures or buying excess shares. Instead, it is depending on the growth of its products demands and innovation to surge its earnings.

Moreover, Celgene (NASDAQ:CELG) while using its collaborations could bring forward more blockbuster medicines. Celgene (NASDAQ:CELG) stocks could rise higher still. With the management of Celgene (NASDAQ:CELG) staunch in their belief that through the coming three years Earnings per share of the company would be doubling and the revenues of the company would be growing by at least 20%, it seems that the company could make further leaps for sure.