Onyx Pharmaceuticals, Inc. (ONXX), Johnson & Johnson (JNJ): Celgene Corporation (CELG)’s Multiple Myeloma Powerhouse

Another worthy competitor is Velcade from Takeda and Johnson & Johnson (NYSE:JNJ), which will lose patent exclusivity in 2017 in the United States and in 2019 in Europe. The multibillion-dollar drug is a proteasome inhibitor like Kyprolis, but it has treated more than 350,000 patients in its lengthy time on the market. Getting on the Velcade train was a smart move for Johnson & Johnson (NYSE:JNJ) — which markets its own multiple myeloma drug called Doxil — for two reasons. First, the company was hit with shortages of Doxil in 2011 and 2012 due to contract manufacturing issues. Second, the drug loses exclusivity in May 2014, which will welcome a flurry of generic competition. Velcade generates more than $2 billion per year for the pair.

And as it turns out, the pipeline competition throughout the industry may not be competition at all. Both Takeda and Cephalon have ongoing trials for multiple myeloma combination therapies that include Celgene’s Revlimid. Takeda’s MLN9708 hit its endpoints in a small phase 1/2 trial that concluded in late 2012 and is now being evaluated in a late-stage trial. Meanwhile, Cephalon’s CEP-18770 is currently being evaluated in a phase 1/2 trial in the United States. If you can’t beat ’em, join ’em.

Foolish bottom line
Celgene has invested heavily in its multiple myeloma products and is now beginning to reap the benefits. Investors have plenty of pipeline candidates to look forward to for long-term growth, but they should also realize how important the success of Revlimid and Pomalyst will be to the company’s immediate and short-term future. Do you think new approvals for Revlimid and Pomalyst can continue to drive Celgene Corporation (NASDAQ:CELG)’s stock higher? I do, but let me know your thoughts in the comments section below.

The article Celgene’s Multiple Myeloma Powerhouse 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 and Johnson & Johnson. The Motley Fool owns shares of Johnson & Johnson.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.