Reviewing the strengths of Celgene

Celgene has several strengths that have made it a leader in the healthcare and pharmaceutical industries. The company focuses on the development of drugs for cancer and inflammatory diseases, which inherently requires research and development, strong financial and proprietary products to give them a competitive edge.

To be successful in the pharmaceutical industry, a company must conduct research and development effectively. Celgene has five facilities designed for unique research in Europe.

Their headquarters in Summit, NJ specializes in General, Clinical Pharmacology and Preclinical Development (Celgene).

The center right here in San Diego is built for drug discovery, alliances, epigenetics and intracellular signaling (Celgene). To the north, San Francisco is home to the IMiDs epigenetic center for translational drug development (Celgene). The Center for Immuno-Oncology is located in Seattle, Washington and Cambridge, Massachusetts.

Finally, Spain is the center for translational research in Europe (Celgene). These facilities house the laboratories and technology needed to develop and improve life-saving drugs. It is important that each seat is dedicated to one or two specialties.

Celgene is one part of the drug use and discovery program to prevent, detect, or treat disease (Celgene).

In addition, one of their primary goals at these facilities is to eliminate therapies that target one of the underlying causes of disease (Celgene). Collectively, these things form the basis for the rest of Celgene’s business.

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One of their key goals at these facilities is to develop treatments that target the causes and sources of disease (Celgene).

Collectively, these things form the basis for the rest of Celgene’s business. One of their key goals at these facilities is to develop treatments that target the causes and sources of disease (Celgene). Collectively, these things form the basis for the rest of Celgene’s business.

Finance is what the company revolves around and, in many ways, is another Celgene’s strength. The current ratio can be used to determine liquidity, that is, the ability of a company to use its assets to cover (Normeyer).

A coefficient of 2.0 or higher usually indicates that Celgene has a coefficient of 2.2 in 2018, which is a success. A company’s performance is measured in part by its return on assets (ROA), which determines the return on all equity (Normeyer). Any return on assets in excess of 5% is generally considered good, and Celgene’s return on assets was 12.3% in 2018. Finally, the profitability of a business is important to see how much of a profit they are making based on net income and net sales.

According to the 2018 New York University Stern Business School study, the average profit margins for pharmaceutical companies, including pharmaceuticals and biotech companies, range from 12.5% ​​to 14%. (Slovak). By comparison, Celgene is doing phenomenal results with 26.5% ROI, double the average. Due to its financial success, Celgene is able to focus on producing its products at reasonable prices.

They believe transparency is critical. (Celgene). Celgene can focus on their products at reasonable prices and that’s what they value. They believe transparency is critical. (Celgene). Celgene can focus on their products at reasonable prices and that’s what they value. They believe transparency is critical. (Celgene).

In terms of finance, patents are included in the company’s assets, and Celgene has an impressive 48 patents protecting its drugs (Friedman). Their main products are in the treatment of multiple myeloma, which is a type of cancer that forms in the white blood cell and is primarily used to fight infections (Mayo Clinic). Celgene’s main drug for this is Revlimid (which alone has 27 patents) in addition to Thalomid and Pomalyst. Their other products, Otezla, Abraxane, Inrebic, Istodax, Vidaza, treat arthritis and other cancers including lung, bone marrow, lymphoma (Celgene). Patents are so important to a company’s success because they ensure that, for the duration of the patent, only the original creators can sell the product.

Disadvantages

Weaknesses are areas where Celgene can improve. They limit the firm’s ability to create sustainable competitive advantage. Weaknesses relate to the absence or absence of key resources and capabilities, including a small number of products.

Dependence on multiple products is a problem and is considered one of Celgene’s weaknesses as they rely heavily on their main product, Revlimid. This drug treats cancer, multiple myeloma and accounts for about 63% of their total revenue (Martin). This is a disadvantage because when the patent expires, Revlimid and other companies create a common brand, Celgene will lose most of its profits.

Low profitability can lead to a lack of funds to invest in new projects. While Celgene’s financial statements are generally stable, they are financially deficient. The current assets ratio for 2017 and 2018 is 5.0 and 2.2, respectively, which means that the liquid assets ratios have decreased and lower than the industry average (Martin).

This suggests that the company must use cash more efficiently than it does now. It could also mean that Celgene could have liquidity problems in the future, which could lead to certain circumstances where there is not enough cash flow, leading to unnecessary and unplanned borrowing. The debt-to-equity ratio is commonly used to determine the financial strength of a company (Nordmeyer). A ratio between 1.5 and 2.0 is considered an acceptable range, but the Celgene ratio for 2018 was 4.8.

Possibilities

Opportunity refers to the relevant external factors that give Celgene a competitive advantage. Advances in technology give Celgene the ability to adjust different prices for the same product in a new market, allowing them to support their sincere customers with excellent service (department, strategic management). Recently, the number of Internet users all over the world has increased. This gives Celgene corporations more opportunities to expand their online presence by using online advertising to track new members. With the advancement of technology and the internet, the e-commerce industry has seen renewed sales growth, which means that people are now buying their products online more than ever before.

Consequently, with more cash in the bank, Celgene can invest in new technologies as well as new product segments, so easy access to credit is a great opportunity for Celgene to expand. In addition, fixed free cash flow offers opportunities to invest in upcoming product segments, which should open up opportunities for Celgene in other product categories (Gabri). Moreover, for Celgene to be successful, they must be able to predict market trends better than others, provide the resources to develop products and services to capitalize on these trends, and compete against competitors (accounting, finance, and .MBA SWOT analysis).

In fact, tax policy can have a significant impact on Celgene, creating new opportunities to increase its profitability. Shrinking boundaries and growing global correlation allow Celgene to expand into international markets, then target its geographically dispersed customer base and increase profitability, so lower interest rates make fundraising and financing easier with less cost. Low inflation provides greater market stability and makes it possible to lend to Celgene’s clients at lower interest rates. Clearly Celgene needs to leverage technological advances as a way to distribute products and attract its competitors ?? vulnerabilities. Finally, Celgene has the opportunity to increase employee retention through new learning opportunities.

Threats

Celgene has many potential threats to its success. First, Celgene is part of the pharmaceutical industry with many competitors. These competitors pose a threat to Celgene’s potential success as they may create innovative new drugs or products that will outperform Celgene’s. These rival companies are also taking business away from Celgene, so in most cases if another pharmaceutical company is doing well it will have a negative impact on Celgene.

As far as competitors are concerned, Celgene is also at risk of copying their drugs. In the United States, companies are allowed to protect their inventions through patents. A patent protects an invention by making it illegal for other companies to manufacture or sell the same or similar product. However, this can be a threat because patents are only 20 years old. After 20 years, the invention becomes common knowledge, and other companies can manufacture and sell similar drugs at a reduced price. This will take away a lot of Celgene’s business.

Another potential threat to Celgene is the inconsistency of new products. Celgene creates formulations that take a lot of time and research to perfect. This is a potential threat because Celgene could go a long way without creating a new drug that consumers love. This means that Celgene’s profits and popularity will grow in bursts every time it creates a new product. However, unlike most other industries, it is very unpredictable how often they will be able to release a popular drug.

Another threat to Celgene’s success is the fact that there are many government regulations and rules regarding medications. Medicines must pass many tests and receive FDA approval before they are sold to the public. It is difficult for pharmaceutical companies to create new drugs that not only work, but pass all the tests they need to go through to get FDA approval.