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Celgene Corporation Message Board

  • rob_cos rob_cos Feb 8, 2013 10:51 AM Flag

    Highest margins/lowest tax rates-100% drug ownership-expanding internationally & into new indications....

    KEY points - INDUSTRY HIGH MARGIN/LOW TAX RATE - expanding internationally with 100% ownership of most drugs....

    I have talked to Mike King of JMP about CELG for yrs, we often go to my theory - that there is no other company with margins like this in all of biotech (all of the S&P 500 actually), with industry low tax rates due to the Swiss Plant and other brilliant tax strategies - EXPANDING INTERNATIONALLY - just this yr China approval soon, and approval or pricing approval in Russia, Turkey, Mexico, South Korea. At 95% margins and say 16% tax rate.

    AND CELG owns 100% OF REVLIMID. Great point by King - Genentechs 2 biggest drugs when they got to $80 billion market cap WERE ONLY OWNED IN THE US!!! And Celgene's margins are 1000 basis points higher and tax rate is at least 5% lower!

    For 3 yrs plus I have talked about INTERNATIONAL AND INDICATION EXPANSION of Revlimid. Its upon us now. HUGE EPS leverage. Its a huge driver to double stock price and market cap by 2015-2016 imo. And now we have 4 other drugs that will get to $billion a yr sales at some point.

    Sentiment: Strong Buy

102.77-3.06(-2.89%)Sep 29 4:00 PMEDT