Morningstar Rating

Stock Research and Analysis

by Karen Andersen, CFA

Bulls Say

Revlimid continues to generate impressive data in approved and potential new indications, and growth should be bolstered by expanded duration of use and geographic reach.
Celgene made two sizable purchases that contribute to its positive moat trend. Pharmion solidified Celgene's strategic focus on blood-related cancer therapies, and Abraxis moves the firm into the broader oncology market.
Celgene's late-stage pipeline is strong; the firm launched multiple myeloma drug Pomalyst in 2013, and oral immunology drug Otezla is launching in 2014. Read more 

Bears Say

Revlimid side effects have delayed the drug's first-line and maintenance setting approval in Europe, and while MM-020 data should reassure regulators, Celgene could have an uphill battle on reimbursement outside the U.S.
Competition in the multiple myeloma market is getting stronger; Velcade has produced outstanding trial results and is vying with Revlimid in the first-line setting, and Amgen's Kyprolis launched as a second-line option in 2012.
The cost of Revlimid--$100,000 a year in the U.S.--fuels legislator and health insurer debates regarding cancer drug pricing. Read more 

Management

We assign Celgene standard marks for stewardship, as the firm has seen tremendous growth under recent leadership teams. Robert Hugin, previously Celgene's CFO (and subsequently COO), took over as CEO in 2010. While Hugin lacks previous health-care industry   Read more 

Profile

Celgene is a biopharmaceutical firm that discovers, develops, and markets therapeutics for the treatment of cancer and immunological diseases. Celgene markets Thalomid and   Read more 

Health Care a Leader in Moat Stocks 
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