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Could Celgene Corporation Muscle Its Way Past Amgen Inc.?

Based on analyst earnings growth estimates from Yahoo! Finance.

Amgen's growth could be hindered in large part by patent expirations. Neulasta's U.S. patent expires this year. The FDA approved a biosimilar in early March, which could begin making a dent in Amgen's Neulasta revenue soon.

Meanwhile, Celgene continues to experience solid growth from Revlimid while adding other strong players to its lineup. Abraxane and Pomalyst both appear to already be knocking on the door for blockbuster status. Otezla shouldn't be too far behind.

Changes on the way

Of course, the analysts could be wrong. Amgen could see better-than-expected earnings (and market cap) growth, while Celgene doesn't do as well as predicted. Perhaps Amgen's PCSK9 inhibitor Repatha will succeed even more than anticipated. Maybe other rival drugs could challenge Celgene's drugs.

My view, though, is that we'll see a change in the market cap ranking at some point over the next five years as Celgene's stock grows in value at a faster pace than Amgen's. Come 2020, I suspect we'll still be saying that it's a great time to own shares of big biotechs.

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The article Could Celgene Corporation Muscle Its Way Past Amgen Inc.? originally appeared on Fool.com.

Keith Speights owns shares of Celgene and Gilead Sciences. The Motley Fool recommends Celgene and Gilead Sciences. The Motley Fool owns shares of Gilead Sciences. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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