‘Tis the Season for Celgene?
Biotech outfit Celgene is a master of what Cramer likes to call UPOD: under-promise, overdeliver. The company has excelled at managing expectations by offering beatable guidance and then doing just that. Then Celgene takes it one step further by raising guidance for the next three months.
Just look at the most recent quarter, reported Oct. 28. Earnings came in at 75 cents a share, or 4 cents higher than expected, on strong revenues. And Celgene raised its full-year forecasts for earnings, for sales of its blockbuster cancer drug Revlimid and for total sales. That’s the third time in a row the company’s boosted the outlook for all three.
On top of good news, we know that Celgene is studying Revlimid for new indications. The drug also was just launched in Japan, and reimbursement approval is expected in Russia and Turkey. Plus, Celgene plans on five to 10 new drugs or applications for approval over the next four years, while 25 clinical trials are underway.
There’s a potential catalyst here, too: the upcoming American Society of Hematology conference,w hich happens every holiday season in early December. Is CELG a buy ahead of it? Watch Cramer’s interview with CEO Bob Hugin to find out.
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