Pharmacyclics, Inc. (PCYC) Set to Glide Higher

Biogen Idec Inc. (NASDAQ:BIIB) has earned around $3 billion from RITUXAN. The drug was partnered with Genetech, so only half of the revenue goes to Biogen Idec. Despite that, the company continues to make a lot of drugs that compete well on the market. Pharmacyclics, Inc. (NASDAQ:PCYC) will likely receive FDA approval, but it will have to deal with Biogen Idec in terms of sales for Ibrutinib.

Biogen Idec Inc. (NASDAQ:BIIB) has a higher P/E ratio of 34.3 compared to its peers in the industry, but the valuation is justified. The company is expected to have future growth of 19.50% in the next five years. This year alone, the company grew by 26.10%. A lot of the growth is attributed to its multi-billion dollar drugs like RITUXAN and Tysabri. The next blockbuster drug from the company is Tecfidera for the treatment of Multiple Sclerosis. Out of the gate, Tecfidera reached sales of $192 million. Over the coming years, the stock price is expected to rise to higher levels as the popularity of Tecfidera continues to reach the future marketplace.

Final thought

Pharmacyclics, Inc. (NASDAQ:PCYC) has a big pipeline of drug candidates with the potential to earn billions of dollars. Despite the big run up, there is more room for the stock to run higher. The catalyst to take the share price higher in the coming year could be the early approval for Ibrutinib. Investors should consider this company from a long-term approach, as this stock could glide higher in the coming months.

The article Pharmacyclics Set to Glide Higher originally appeared on Fool.com.

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