Celgene Corporation (CELG)’s Fading Star

Astronomical
The story behind Thalomid illustrates the importance of research and development in the pharmaceutical industry. A drug can be viewed in the highest regard, then fall from grace — but later be used for a totally different indication and generate billions of dollars in sales over the years. And research on drugs that don’t become blockbusters can contribute to future blockbusters.

So can history, especially that of a fading star like Thalomid, teach investors a lesson? I think so. The story of Thalomid is, at its core, a story of innovation. Celgene took a has-been drug and found new ways to use it. Look for the innovators like Celgene. They’re the ones that give investors the best opportunity to make great returns over the long run — even astronomical returns.

The article Celgene’s Fading Star 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 has no position in any of the stocks mentioned.

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