Celgene Corporation (CELG), Onyx Pharmaceuticals, Inc. (ONXX), Johnson & Johnson (JNJ): When Will the Good News End for This Biotech?

You might look at Celgene’s dependence on Revlimid and see it as the company’s Achilles’ heel. The drug accounts for nearly two-thirds of total revenue. However, Abraxane, Pomalyst, and apremilast seem poised to reduce Celgene’s dependence on Revlimid in the future.

Valuation isn’t worrisome yet, either. Celgene’s trailing price-to-earnings multiple is over 40 — the highest it’s been in nearly four years. However, considering the biotech’s solid potential for earnings growth, that’s not too high in my view.

The good string of events for Celgene will surely come to an end at some point. From all appearances, though, that end will be later rather than sooner.

The article When Will the Good News End for This Biotech? 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 and Johnson & Johnson. The Motley Fool owns shares of Johnson & Johnson.

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