"The medical arena has long been my favorite sectors; perhaps the best opportunities within the medical sector will be with companies who provide life-saving products for the treatment of serious diseases," says Dave Dyer.
In The Dave Dyer Newsletter, he explains "That is why Celgene (NASDAQ: CELG) is an excellent choice in this economy." Here's his look at this recession-resistant company.
"Celgene is a multinational biopharmaceutical company with a $29 billion market cap and no debt.
"Revlimid is their blockbuster drug with multi-billion dollar potential. It was first approved by the FDA in 2005, and it has many good years of patent protection ahead of it.
"Revlimid delays the onset of progression of deadly diseases -- leprosy and multiple myeloma. No wonder it is worth $6,000 per month.
"It is a close derivative of their other drug Thalomid. This drug was used by another company about 50 years ago to treat morning sickness in pregnant women and caused numerous birth defects.
"Despite a recession, we believe that demand for its products will remain strong. For example, if you have multiple myeloma, you would probably do just about anything before missing a payment for your monthly dose of Revlimid.
"Blockbuster drugs generate wonderful growth. EPS growth has been amazing. Consider this string of the 8 most recent quarters: 500%, 122%, 136%, 93%, 72%, 80%, 42%, and 38%.
"CELG’s recent quarterly revenue growth has been consistently spectacular. Not many companies can brag about this string of quarterly growth compared with the same quarter last year: 84%, 61%, 76%, 43%, 51%, 58%, 64%, and 69%.
"CELG did have a scare last December when a potentially competitive drug from Millennium Pharmaceuticals appeared to be effective against multiple myeloma. It turned out that concern was unwarranted.
"Revlimid is taken in a convenient pill while the competitor requires shots twice a week. The side effects of the competition (numbness in hands and feet) were also a factor. CELG’s sales did not suffer and the stock recovered.
"A 5-year chart tells the tale of a successful company that has made lots of money for shareholders while saving lives. It has recovered from the competitive threat and now appears to be recovering from the general market decline." 
