Last week, biotech powerhouse Celgene
Celgene, which has few marketed compounds, is going to experience bonanza sales growth when a new drug like Revlimid is early in its launch. In the first quarter revenue was up 61% as sales from Revlimid outpaced the stagnant top-line growth with the rest of Celgene's compounds.
On the back of 18% sequential Revlimid sales growth, Celgene's adjusted operating income more than doubled, even with operating expenditures running a third higher than a year ago.
The Revlimid sales growth party isn't going to stop anytime soon. Celgene received a positive opinion on the drug from the European Union's drug regulatory body in March, with final approval of the compound expected later this year. It will take months before Celgene can complete reimbursement negotiations for Revlimid in the twenty-odd EU nations, but sales should begin to pick up in the second half of 2008.
Unlike competitor Millennium Pharmaceuticals
However, if Revlimid can maintain its spot as the drug of choice to treat multiple myeloma and Celgene controls its expenditures, then investors who buy shares today will probably be rewarded in the long run as earnings expand at a rapid clip in the coming years.
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