The True Effect: Positive Findings - Research Report on Celgene Corporation and Gilead Sciences, Inc.

 The True Effect: Positive Findings - Research Report on Celgene Corporation
                          and Gilead Sciences, Inc.

After reporting successful clinical trials at the 31st annual J.P. Morgan
Healthcare Conference earlier this month, prices for Celgene and Gilead
Sciences both rose significantly. Should investors take a shot at these two
promising drug makers?

PR Newswire

NEW YORK, January 23, 2013

NEW YORK, January 23, 2013 /PRNewswire/ --

Celgene Corporation (NASDAQ: CELG) [Full Research Report]^[1] and Gilead
Sciences, Inc. (NASDAQ: GILD) [Free Research Report]^[2] both reported
impressive results in the last J.P. Morgan Conference earlier this month, with
Celgene corporation outlining a plan that will drive revenue to $12 billion a
year by 2017, and with Gilead Sciences announcing promising results on its
late-stage pipeline candidates for the treatment of chronic hepatitis C virus
(HCV) infection. With both companies showing signs of considerable growth
within the next few years, it begs the question: is now a good time to invest
in these biotech giants?

Investors have always been cautious to jump at opportunities presented by
biotechnology firms because of the high-risk nature of the industry. Positive
news from successful clinical trials cause stock prices to rise, while
unsuccessful trials can cause them to hit rock bottom. Furthermore, with long
research and development (R&D) phases, biotech firms earn little revenue
before any of their products are approved by the FDA.

Earlier this month, Gilead went public with its positive results of its
late-stage candidates for the treatment of chronic hepatitis C infection
(HCV). How profitable can this be for the company? The global market for
Hepatitis C is estimated at $2 billion and it is also expected to reach up to
$10 billion in the next ten years. If Gilead becomes the first company to get
approval for the next generation drug for Hepatitis C, the company will earn
significant revenue. The company also earns a significant amount from its HIV
franchise. In light of these events, Barclays Capital increased their target
price on shares of Gilead from $76.00 to $84.00 last Tuesday.

Meanwhile, Celgene has reported its accomplishments of 2012 and its outlook
for 2013. The company is advancing three new programs that will increase
revenue from $12 billion a year by 2017. Celgene is currently waiting for the
FDA to approve Pomalyst, its multiple myeloma drug. The company is also to
file Apremilast and Abraxane for approval later this year. Sales growth for
each year between 2013 and 2017 is expected to be 13% for the existing
business. 15% will be added from the sales of Abraxane and 19% more from
Apremilast.

Since Celgene and Gilead are on their way to secure approvals for their new
drugs, both stocks have a high potential to deliver great returns provided
that they do not suffer any serious setbacks. Many are optimistic about these
stocks, expecting them to shoot up even higher if things unfold as expected
for both companies.

With these companies on a high, Celgene currently trades at $99.31, while
Gilead is priced at $77.91.

Reference Links:

^[1]The Full Research Report on Celgene Corporation - including full detailed
breakdown, analyst ratings and price targets - is available to download free
of charge at:
[http://www.nationaltradersassociation.org/r/entire_report/5e17_CELG]

^[2]The Free Research Report on Gilead Sciences, Inc. - including full
detailed breakdown, analyst ratings and price targets - is available to
download free of charge at:
[http://www.nationaltradersassociation.org/r/entire_report/6e69_GILD]

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