Healthcare Industry Group Celgene Healthcare Industry Group

Bought Celgene for $62 Now at 101 63% Return Sell Half Position Amgen OUR SUGGESTIONS NOV 201 1 Bought Celgene for $62 Now at 101 63% Return Sell Half Position BUY Amgen

Biopharmaceutical Companies Obamacare More people insured→ more people demanding drugs Insurance Reimbursement Risk Compared to Generic Drug companies

Celgene OVERVIEW Diversification 25 ongoing Phase III Trials POSITIVES RISKS Diversification 25 ongoing Phase III Trials Robust Growth Prospects Cash R&D Slowing Revlimid Sales Failure to expand usage Failure of approve drug

Briefly…Amgen More mature company with a dividend

Acquired November, 2011 @ $61.64 52 Week Range: $58.53 - $102.29 Current Price: $101.65 YTD: Up 28% ($78-$101)

Background Founded in 1986 4,460 Employees as of December 2011 Headquarters: Summit, NJ Locations across the US: NJ, CA, FL, among others Locations across the EU: London, Milan, Paris, among others

CEO- Robert J. Hugin Had high leadership roles in the company since 1999 Former Managing Director at JP Morgan Board of Directors at PhRMA (Pharmaceutical Research and Manufacturers of America) Does advocacy for public policy to incentivize R&D

The Board Michael Casey (2002) Rodman Drake (2002) MD @ Baringo Capital LLC Gilla Kaplan, Ph.D (1998) -On Scientific Advisory Committee of Bill & Melinda Gates foundation James Loughlin (2007) -Former National director of KPMG Pharmaceuticals Practice Ernest Mario, Ph.D. (2007) -Former deputy Chairman and CEO of Glaxo Holdings plc. Second largest pharmaceuticals corporation to Merck & Co. -2007 Remington Award Winner American Pharmacy Association’s highest honor Carrie Cox (2009) Michael Friedman, M.D. (2011) Richard Barker, D.Phil (2012)

Revlimid Multiple Myeloma Revlimid Market Other Uses of Revlimid 2/3 of Celgene Revenue Long term growth potential Global Other Uses Competition 12% in 2013 Other Uses of Revlimid

Revlimid Multiple Myeloma Revlimid Market Other Uses of Revlimid 2/3 of Celgene Revenue Long term growth potential Global Other Uses Competition 12% in 2013 Other Uses of Revlimid From Fiscal Year End December 2012, Celgene Corporation Annual Report-10k form

Revlimid Multiple Myeloma Revlimid Market Other Uses of Revlimid Lots of other potential uses-driver of growth Mantle Cell Lymphoma

Pomalyst Apremilast New Drugs Pomalyst, Apremilast, Abraxane

Pomalyst FDA approval announced on February 11th, 2013 Refractory treatment for Multiple Myeloma (MM) International Myeloma Foundation 100,000 people in the U.S. currently with MM Nearly 200,000 new cases diagnosed each year Multiple Myeloma: also known as plasma cell myeloma, white bloods cells normally responsible for producing antibodies. In MM, collections of abnormal plasma cells accumulate in the bone marrow and interfere with the production of normal blood cells. Generally thought to be treatable but incurable. Refractory: disorder that is resistant to treatment. Second most commonly diagnosed blood cancer. Represents 1% of all cancers and 2% of all cancer deaths.

Apremilast CELG’s leader in the pipeline for new drugs Treatment for severe psoriasis, psoriatic arthritis, and ankylosing spondylitis CELG reported positive Phase III Apremilast data for psoriasis and psoriatic arthritis Plans for FDA and European regulatory filings in 2013 Estimated FDA approval in 2014 Psoriasis: an immune-mediated disease affecting the skin. Characterized by skin redness, irritation, and thick red skin with flakey silver-white patches called scales. Typically developed between the ages of 15-35, not contagious, a lifelong disease, there is no cure but medications available to control the symptoms. Affects 7.5 million Americans and 125 million worldwide. About 150,000 new cases diagnosed each year in the U.S. Psoriatic arthritis: type of arthritis that occurs with psoriasis. Estimated that up to 30% of individuals with psoriasis also develop psoriatic arthritis. Here symptoms include joint swelling, skin and nail changes and pitting. Ankylosing spondylitis: Long-term disease that involves inflammation of the joints between spinal bones, and the joints in between the spine and pelvis. Joints become swollen and inflamed. Phase III of clinical trial: trial in which the new drug, which has proven to be effective for some patients, is compared to the standard or best-known treatment. Pomalyst and Apremilast positive

Abraxene Pancreatic cancer, metastatic breast cancer and advanced non-small cell lung cancer Sales of about $386 million in 2011 Approved in 2012 for first-line treatment of metastatic non-small cell lung cancer among patients who could not receive radiation therapy or curative therapy. It is now undergoing trials for cancers of the bladder, ovaries, as well as metastatic melanoma The FDA orphan drug act was designed to encourage the development of products that demonstrate promise for the diagnosis, prevention and/or treatment of life-threatening or very serious conditions that are rare and affect 200,000 persons or less in the United States

Amrubicin Small cell lung cancer Approved in 2008 as an FDA Orphan Drug. It is currently approved and marketed in Japan for the treatment of small cell lung cancer.

Financial Trends 4th Quarter Results: $1.32 per share $2.78 billion Long-term Debt $3.9 billion cash

Price Target

Valuation (HIGH)

SELL HALF POSITION CONCLUSIONS POSSIBLE UPSIDE POTENTIAL BUT WANT TO CASH IN AT OUR GAINS SELL HALF POSITION BUY AMGEN SIMILAR COMPANY, NOT AS RISKY