Revlimid Gains, Celgene Corporation (CELG) Loses

Looking ahead
I think investors should take a long-term view with Celgene Corporation (NASDAQ:CELG) (and any other stock, for that matter.) Revlimid’s juggernaut appears likely to keep on rolling. Even though Johnson & Johnson (NYSE:JNJ) and Takeda have been on the market longer with Velcade, Revlimid is still the top dog for treating multiple myeloma.

Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX) is staking its claim to the multiple myeloma market with Kyprolis, but so far the rival drug is approved only as a third-line treatment. Kyprolis is really more of a direct competitor to Pomalyst, although I continue to believe that there’s plenty of room for both drugs to succeed.

AbbVie Inc (NYSE:ABBV) and Bristol Myers Squibb Co. (NYSE:BMY) joined forces on development of blood cancer drug elotuzumab. However, the partners are only in phase 3 trials. And two of those studies actually include use of elotuzumab along with Revlimid.

Revlimid still makes up around two-thirds of Celgene Corporation (NASDAQ:CELG)’s revenue, but the company has several other up-and-comers. Abraxane, Apremilast, and Pomalyst appear to have plenty of potential. Vidaza is still showing firepower as well.

The latest FDA approval for Revlimid is just another cog in the wheel for Celgene. My view remains that the stock is a good long-term pick. With the recent pullback, investors with an eye toward the future could do well by scooping up some shares of this biotech.

The article Revlimid Gains, Celgene Loses originally appeared on Fool.com and is written by Keith Speights.

Fool contributor Keith Speights has no position in any stocks mentioned. The Motley Fool recommends Celgene.

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