A Biopharma Grower

Biotech blue chip Celgene (Nasdaq: CELG) is a major player in the rapidly growing oncology market, with three primary methods of growth.

First, Celgene can grow organically. Its main growth driver is its Revlimid drug, which is delivering increasing revenue due to a growing number of multiple myeloma diagnoses, longer treatment time frames and pricing power. Celgene’s Pomalyst, for multiple myeloma, and Otezla, for plaque psoriasis, are also growing quickly, and the company has a pipeline that’s full of opportunity.

Second, Celgene can grow inorganically via acquisitions. It acquired Abraxis BioScience in 2010 for its metastatic breast cancer drug Abraxane, which had $315 million in sales in 2009. Abraxane’s label was expanded to treat advanced pancreatic cancer and advanced non-small-cell lung cancer, and its sales this year could touch $1 billion, though competition has grown. For $7.2 billion, Celgene has now bought Receptos, for its ozanimod drug that treats multiple sclerosis and ulcerative colitis. Its annual sales potential tops $4 billion.

Finally, Celgene can use collaborations to its advantage and is leveraging its R&D by partnering with more than 30 different drug developers to discover first-in-class treatments for cancer, immunology and inflammation.

Management is aiming to more than double sales and nearly triple profits over the next five years, and Celgene stock has been trading at an attractive price recently. (The Motley Fool owns shares of and has recommended Celgene.)