IMAGE SOURCE: GETTY IMAGES.
Would you buy a house without inspecting its foundation? No way. And for exactly the same reason, don't ever buy a biotech stock without inspecting its pipeline. A strong pipeline holds the biotech's valuation up in the long term, just as a foundation holds up a house. Which is exactly why -- given its pipeline -- Celgene Corporation (NASDAQ: CELG) is my top pick in biotech. And it's also why, at its current 12% discount from its price a year ago, it could just be the best bet in biotech.
Celgene's titanic pipeline has over 50 potential product approvals in over 100 indications pending by 2025. That kind of potential lays the groundwork for continued double-digit growth far into the future. This company's target is a 23% compound annual growth rate in earnings per share through 2020, and as the visual shows, Celgene expects its pipeline candidates to keep that earnings growth trajectory going for another decade.
IMAGE SOURCE: CELGENE PRESENTATION.
Let's zero in on seven reasons Celgene is cheap at its current price, by looking at some of its next-generation treatments.
Reason 1: Ozanimod
Drum roll, please, for the superstar in Celgene's pipeline: ozanimod. The experimental med came from Celgene's $7.2 billion buyout of Receptos Inc. and is showing three under-the-radar tech stocks instead.
You can learn more about "Project Titan" and the three tech stocks we recommend by clicking here now.
