Celgene Corporation (NASDAQ:CELG)
Celgene predicts a whopping $21 billion sales by 2020, marking over 100% increase from its sales today.
Currently, the company has a total amount of $7.50 billion cash on hand. Celgene holds a ‘cheap’ forward price to earnings (P/E) ratio of 13.85.
Investors remain optimistic about the healthcare company’s upbeat projections. Moreover, a great cash-on-hand also indicates financial flexibility.
Celgene is also focusing on psoriasis and pancreatic cancer, areas that emphasize the company’s efforts to innovate.
However, analysts have one particular concern about the company. Celgene has deeply relied on its multiple myeloma therapy, Revlimid. The top-selling drug was launched in 2005. Presently, it accounts for over 60% of Celgene’s quarterly sales.
Pfizer, Inc. (NYSE:PFE)
Last year, Pfizer’s sales dropped over $15 billion when the best-selling Lipitor lost its patent protection in 2011.
However, analysts and investors continue to regain faith in the company as the management recently gave guidance that sales and profit will relatively surge this fiscal year. The biotech giant projects revenue of at least $51.30 billion and earnings per share (EPS) of at least $2.36 with last year’s currency exchange rates. With last month’s exchange rates, predictions are set at $39 billion and $2.20 respectively.
The company’s gradual recovery from losses over the past years can be attributed to its recent acquisition of Hospira, cost-cutting efforts, and heightened sales for its new drugs.
WebMD Health Corporation (NASDAQ:WBMD)
WebMD Health’s sales are particularly driven by its advertising revenue. It has a growing presence on the internet in the forms of informative healthcare websites such as MedicineNet, Medscape, and WebMD. These three websites are apparently three of the most visited healthcare websites of today.
In the third quarter, WebMD Health posted total sales of $152.60 million and an EPS of $0.32, up by 6.30% and 39% year-over-year respectively.
Aside from the positive latest quarterly figures, WebMD Health also gave a sales forecast of $181 million to $191 million for the fiscal fourth quarter. This shows a potential increase of 11% to 17% from the same period last year. The company believes that results will be even better than the said guidance.