Akara Group International Remains Bullish on Celgen Corp (CELG)
Celgene Corp. (CELG) continues as Akara Group’s biotech recommendation list as the recent sell-off positions the stock as attractive at current levels.
After a shaky start to 2016, like most publicly traded stocks, Celgene Corp (CELG), which has seen the price of its stock fall by 12% year-to-date, Akara Group International’s Chief Investment Strategist proclaims the stock under current levels as an attractive buy for investors considering the addition of biotech into their strategies.
“The biotech sector as a whole took a beating in September 2015. The sector also felt a compounding effect as the wider market started the year in free fall. As volatility appears to have halted for the time begin, we are seeing evidence of a solid recovery emerging from the biotech sector, with Celgene continuing as clear leaders in this field.”
“The biotech sector has enormous growth potential and as we here at Akara Group continue to analyse Celgene, we expect annual compounded growth to hover around the 17% over the next four years. Revenue expectation for 2016 have already been revised from an initial $10.5 billion up to $11.2 billion. In line with our compounded growth estimate, we expected to see revenues at Celgene to hit $20 billion by the year 2020,” continued Akara Group International’s Chief Investment Strategist.
As the biotech sector continues to evolve from its early year of commercial existence, Celgene’s product portfolio remains relatively small as it is limited to less than ten commercial products. 60% of the biotech’s revenue is derived by cancer treatment drugs with the remainder approved to treat inflammatory diseases.
Akara Group International’s Chief Investment Strategist presented his views on how he believes Celgene can continue its growth story and reward investors along the way.
“With a majority focus on cancer treatment and related drugs, Celgene has emerged as the most likely company out of the sector to continue with the approval of its patents. As the company continues to ride on the success of the cancer treatment Revlimid, it needs prepare for the patent expiration in 2019 as generic competition will affect bottom line sales, however as the company’s product pipeline extends to 30 candidates, we strongly believe that two to three winners will be granted patents and commercial license approval.”
The general consensus of analysts maintain a buy position on Celgene stock with a 12 month average set around the $138.95 price mark.
About Akara Group Int
Akara Group International (www.akaragroupint.com) is an independent boutique finance and wealth management firm that is proud of its roots and the success it has achieved for its clients.