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Health and Healthcare

Celgene Proves Riskier Than Imagined (CELG)

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By Douglas A. McIntyre Updated Published
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Celgene Corp. (NASDAQ:CELG) is seeing the price of its shares crushed today after trial results were shown on Sunday at the 49th annual American Society of Hematology (ASH) Meeting of Celgene’s drug Revlimid as a treatment for a blood cancer failed to impress Wall Street.  One trial compared Revlimid combined with dexamethosone, a steroid, to only dexamethosone. The second trial combined Revlimid with two different doses of dexamethosone and the levels of complete response with total remission has failed to please.

Shares of Celgene traded down to a new 52-week low today.  Its prior range over the last year was $49.46 to $75.44, and it traded as low as $47.21 today.  Shares are currently down about 14% at $49.35 and the stock has traded over 26 million shares.

Since October, shares of Celgene have now lost 1/3 of their value, and its market cap is still over $19 Billion.  Prior to today, analysts estimates from First Call put the entire 2008 revenues at $2.06 Billion.  Prior to today’s stock sale the average analyst price target was over $75.00.  Wachovia just assigned a new Outperform rating to it last week, and in the two weeks prior it had been upgraded at BMO Capital Markets and at Banc of America.

This had previously been a Cramer pick as well and he’s even interviewed the CEO before.  Cramer has also evaluated this one before with other biotech blow-ups.

 

Jon C. Ogg

December 10, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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