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Fischer pointed out Celgene's robust projected earnings growth of about 20% annually through 2020, attributed to a strong pipeline of new products and ongoing key data releases through 2016 and 2017. He mentioned that Celgene’s stock trades at a mid-teens multiple in relation to its future earnings, which, when coupled with its growth rate, positions it compellingly in the biotech sector.
The Importance of Patent Protection
In response to Broido’s question about patent protection, Fischer explained that such protection typically lasts for 17 years from discovery or filing and is vital for companies like Celgene. High investment in research and development necessitates time to recoup costs, and losing that protection to generics can significantly impact profitability.