Giant of the Cancer-drug conglomerates, Celgene Corp recently announced a massive purchase of competitor Receptos Inc. The $7.2 billion deal is Celgene’s first move to become further involved in the business of combating autoimmune diseases. Targeting the largest markets in this category, diseases like rheumatoid arthritis, ulcerative colitis, and psoriasis, open a huge opportunity for additional revenue along with treatment advances.
The acquisition of Receptos Inc is a bid to diversify Celgene’s treatments. 65% of the company’s $7.6 billion is thanks to the sale of one drug. Revlimid, designed to treat blood-borne cancers, is so heavily relied upon for the company’s funding that a competitor’s advancement could put them out of business. Looking for a bigger piece of an industry that’s estimated at $67 billion and growing, Celgene’s purchase is a smart business maneuver for the company and those they treat.
Receptos Inc plans to supply Celgene a third drug for the treatment of ulcerative colitis and multiple sclerosis to bolster their offerings of autoimmune treatments. Currently named Ozanimod, Celgene is projecting a possible $6 billion return in yearly sales to their already sizeable annual income, and more importantly, an increase in quality of treatment for thousands of their patients. The latest splash in the drug industry, Celgene has been a major player of late. Acquiring a 10% share of Juno Therapeutics last month, Celgene’s maneuvering into an advantageous position for further development of their cancer treatments.
Celgene projects future sales in 2020 to exceed $21 billion, far surpassing any prior landmarks the company has ever achieved. With second-quarter earning neighboring $2 billion, Celgene is already 22% over where they were last year at this time. Commanding a wide influence over the treatment of autoimmune disease, Celgene looks to dominate the market, and bring real change through innovative treatments.
from Bjorn Koch | Healthcare http://ift.tt/1gOfVON