Celgene Corporation (NASDAQ:CELG) is expanding its wings in Cambridge, having leased a new 40,000 square feet office space previously belonging to Amgen, Inc.(NASDAQ:AMGN). The fast growing biopharmaceutical company already occupies part of the 200 Cambridge Park Drive as it continues to expand its footprint in the area.
Celgene’s Acquisitions
Amgen has moved its entire staff from the fifth floor of 200 Cambridge Park Drive prior to the expiry of its lease at the end of the year. Most of the staff are being moved to the company’s newly expanded Kendal Square office space. The company is also in the process of transferring some employees to its headquarters in Thousand oaks California.
Celgene has been on an expansion drive in Massachusetts having acquired a number of local biotechs as it continues to look for new opportunities for growth. Some of its notable acquisitions in the area include Acetylon pharmaceutical, acquired in December last year for an undisclosed amount. Early this year the company also wrote a cheque of $300 million for the acquisition of Delinia, a startup that is betting big on autoimmune disorders treatments.
Celgene Expansion Drive
The Celgene expansion drive comes at a time when the average spending on prescription drugs is expected to grow by 6.3% a year through 2025. The spending spree should benefit the company’s four best-selling drugs that are all patent protected. The company’s top-selling drug Revlimid registered a 20% increase in sales last year, which came in at $7 billion. Its other cancer drug Pomalyst posted a 33% increase in sales year over year.
A market cap of $94 billion means the biopharmaceutical company is on its way to becoming one of the most dominant pharma company at the back of stiff competition. The company’s pipeline of drugs should also be a big driver for growth in the coming year.
Four new drugs with the potential of generating revenues in the area of $2 billion are already in the pipeline. However, pipeline setbacks could derail the company’s expansion drive given that its cancer drug Abraxane is already showing signs of slowing growth on sales.
Celgene Stock was down by $1.01 in Friday trading session ending the week at $122.26 a share.