Celgene Corporation (NASDAQ:CELG)’s stock continues to hold a bullish tag with many analysts as the stock continues to enjoy an upswing in the market. According to, Mark Schoenebaum, an ISI Pharma/biotech analyst in an interview on CNBC, despite the company having a patent issue on its lead drug, all could change for the better in the coming months.
Mr. Schoenebaum is banking on Celgene Corporation (NASDAQ:CELG) to perform better in the coming months at the back of its new drug for gastrointestinal disease, Crohn’s disease. The report data for the disease is expected to come this fall, and Mr. Schoenebaum expect the data to be positive.
The drug according to the analyst is not going to be a typical drug in terms of sales but should contribute a bigger chunk into Celgene Corporation (NASDAQ:CELG)’s earnings.
“This drug is not going to be a $2, $3 or $4 hundred million drug but this drug, very well could be a $2 or $3 billion drug.” Mr. Schoenebaum said about Celgene’s new drug.
The drug according to the Biotech analyst is expected to be a major catalyst to Celgene in the second half of the year. The company just recently acquired the drug as a new asset. Celgene Corporation (NASDAQ:CELG) is not getting credit for the drug as is normally the norm in the biotech industry, until the drug reaches Phase 3 of the study.
Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is another stock that has enjoyed an impressive past week after the company announced positive result from two, phase 3 studies of the treatment for cystic Fibrosis. Despite the latest surge in the market Mr. Schoenebaum believes there will be not much swing in the stock for the next six months, but over the long-term period he still keeps his bullish sentiment on Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX).
“Well over the short term there is not much that is next. I don’t see the catalyst for this stock over the next 6 months or so but if you would extend the timeline for a year and half or two years, there are significant catalysts on the horizon.” Mr. Schoenebaum said about Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)’s future.
Gilead Sciences, Inc. (NASDAQ:GILD) is another stock that has caught the attention of Mr. Schoenebaum although it has not been that exciting. The analyst believes the stock is still a value stock having quadrupled in value over the past three years. He believes that the stock of Gilead Sciences, Inc. (NASDAQ:GILD) could trade at eight times its earnings over the next year.