JP Morgan Update:Can Celgene become a “Niche Buster” Factory?

Sol Barer, PhD, CEO of Celgene (NASDAQ:CELG) announced at the JP Morgan Conference in San Francisco, exciting developments in in label expanding clinical trials for Revlimid including in the treatment of newly diagnosed multiple myeloma patients. Along with oral TNFalpha inhibitor for the treatment of psoriasis in the research pipeline, Celgene is demonstrating its ability to create and develop more drugs in the immunology/oncoloy sector. Dr Barer announced the goal for Celgene to become a major pharmaceutical company. Hopefully, Celgene will remain nimble, delivering multiple ”niche busters’ , just like Genentech has done, rather than grow into a Big Pharma with a mediocre R&D productivity.

In the mean time, Celgene is trading at around $ 50 a share, 33% below its peak level in 2007. 2008 will a transition year with the digestion of the $ 2.9 billion Pharmion acquisition and continued pressure to grow Revlimid sales over 30 % in face of competition from Millenium’s Velcade.