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 novel combinations.
Celgene's acquisitions contribute to its positive moat trend. Pharmion solidified Celgene's strategic focus on blood-related cancer therapies, Abraxis moves the firm into the broader oncology market, and Receptos and Nogra build more immunology exposure.
Celgene's pipeline has produced new products beyond Revlimid; the firm launched multiple myeloma drug Pomalyst in 2013 and oral immunology drug Otezla 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 reassured regulators, Celgene could have an uphill battle on reimbursement outside the U.S.
Competition in the multiple myeloma market is getting stronger; Velcade has traditionally vied with Revlimid in the first-line setting, and Amgen's Kyprolis (launched in 2012) has seen recent data showing even stronger efficacy than Velcade.
The cost of Revlimid--roughly $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 

2 High-Quality Health-Care Bargains 
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