Biotech Blues: Revising Our Call on Celgene
We blew it on our Celgene call.Over a month ago, we advised readers to dump shares of the biotech stock.
Celgene (CELG) is by no means a "one trick pony," as we had previously opined.
In fact, Celgene (which went public in 1987) is hitting all cylinders and on a roll after getting FDA approval for Revlamid, a potential blockbuster treatment for blood cancer (myeloma and MDS).
MDS is a failure of the bone marrow to produce enough blood cells.
Today, Celgene is hoping to break into the European markets, which could dramatically impact its bottom line.
Celgene is also experimenting with Revlamid to see if it can treat 50 other cancers.
In other words, our call was way off.
In our assessment of Celgene, we relied too much on the company's dark history: Revlamid is a second version of Thalidomide, used in the 1950s as a sleeping and morning sickness aid.
Thalidomide caused major birth defects.
While the stock hasn't moved much since we made our remarks, it's safe to say that we've done a 180 and now think Celgene's future looks bright.
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