What Does Celgene Corporation (CELG)’s Failed Trial Mean for Investors?

The astounding rise of Pharmacyclics, Inc. (NASDAQ:PCYC) through the markets has been largely based on its BTK inhibitor ibrutinib, which is being evaluated in four types of blood cancers and in a preclinical study for autoimmune indications. The rise is no fluke, either. Ibrutinib has shown very promising results in two phase 2 trials as a monotherapy and will soon be moved to phase 3 trials for both. With billions of dollars between the lymphoma and autoimmune markets up for grabs, it is easy to see why shares have risen 2,000% since the company acquired its lead drug candidate in 2006. Can Celgene Corporation (NASDAQ:CELG) tap into this multibillion opportunity with CC-292? Ask me again in about five years.

Foolish bottom line
Is this failed trial a blow to investors? Yes, although it is cushioned by a late-stage pipeline that is stocked full of potential. Revlimid, which is already approved for multiple myeloma and myelodysplastic syndromes, is far from done expanding: The therapy is currently being evaluated in nine trials throughout the pipeline. When it comes to B-Cell CLL, however, Celgene Corporation (NASDAQ:CELG) will now have to wait for its novel BTK inhibitor to work its way through trials. Can it show the promise of Pharmacyclics, Inc. (NASDAQ:PCYC)’s ibrutinib? It is much too early to say for sure, but it is surely a compound that investors will want to keep on their radar.

The article What Does Celgene’s Failed Trial Mean for Investors? originally appeared on Fool.com and is written by Maxx Chatsko.

Fool contributor Maxx Chatsko has no position in any stocks mentioned. Check out his personal portfolio, his CAPS page, or follow him on Twitter @BlacknGoldFool to keep up with his writing on energy, bioprocessing, and biotechnology. The Motley Fool recommends Celgene.

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