Celgene Corp (NASDAQ:CELG): A Juggernaut in the Making


Celgene Corp. (NASDAQ:CELG) is one of those fast rising companies that have been posting great quarters, owing to the boom in the health care companies. Celgene Corp.  (NASDAQ:CELG) has moved up by 254 percent in the last couple of years. But the ironic thing is that the company isn’t paying dividends to the shareholders, even when it is quite capable of paying them and that too in bulk. Celgene Corp. (NASDAQ:CELG) has a healthy pipeline with numerous cancer drugs that make heavy sales per quarter.

Investors should be asking Celgene Corp. (NASDAQ:CELG)’s management about the revenue it is making because it’s no secret that the company has loads of cash stuffed; the question is what Celgene Corp. (NASDAQ:CELG) is doing with such cash, without paying dividends to the shareholders. Celgene Corp. (NASDAQ:CELG) has been pouring cash into growth and shareholder rewards and still the company managed to make 655 million dollars; as quarter after quarter has been turning out to be profitable for the company. The third quarter accounted for a 10.5 percent up hike. We should empathize with Celgene Corp. (NASDAQ:CELG), because the biopharma company is still in a premature state and with the tumultuous state of pharmaceutical market; it is best that the company piles up revenue.

Celgene Corp. (NASDAQ:CELG) has a lot of time for dividends, what it needs now is to make enough revenue so that it can guarantee a payback for the next couple of years. Celgene Corp. (NASDAQ:CELG) could also look into making some high end or low end acquisitions. The cancer drugs the company is rolling out will prove to be quite significant to the revenue of the company. Celgene Corp. (NASDAQ:CELG) has a powerful pipeline with numerous compounds which are either being clinically tested or have been rolled out to the market.

Probably long term sustenance and long term growth are strategies that seem to offer something to the shareholders in the future. Celgene Corp. (NASDAQ:CELG) must guarantee a safe future for the shareholders and the prospective investors because the pharma market isn’t known to be quite formidable.

The company’s plan of stockpiling for the future is a positive one; and an intelligent one too. Let’s just hope that Celgene Corp. (NASDAQ:CELG) keeps piling up cash and keeps the investors and shareholders happy with rewards and share buybacks.

The compounds in the pipeline, if proven successful in the market, will be the sole reason behind the company’s surge in the future. We forecast Celgene Corp. (NASDAQ:CELG) will give a tough time to several of its competitors in the coming years and if the growth remains the same, it is possible Celgene Corp. (NASDAQ:CELG) becomes the top bio-pharma company in the market.

The future looks bright for the company and it’s time the competitors start taking Celgene Corp. (NASDAQ:CELG) seriously. However, its failure to award well deserved dividend to its investors is where it fails to impress. Most companies feel that it is important to keep investors happy as they make an integral sub contractor.