Celgene Scores with Revlimid - Analyst Blog

 
Celgene Corporation (CELG) announced recently that initial results from a late-stage study in multiple myeloma (MM) patients revealed that those treated with Revlimid underwent a 58% reduction in disease progression compared to placebo. The positive results caused shares of Celgene to close Dec. 18, 2009 at $55.95, up 10.5% from the previous day’s closing.
 
The randomized, double-blind, multi-center study evaluated Revlimid in multiple myeloma patients who had received a stem-cell transplant. The trial, sponsored by the National Institutes of Health under an agreement with Celgene, comprises patients who have received autologous stem-cell transplants. Autologous stem-cell transplants refer to a process where stem cells are removed from a person's bone marrow before chemotherapy, then reintroduced after chemotherapy. The objective of the exercise is for the stem cells to produce healthy new blood cells.
 
The positive data strengthens the theory that Revlimid can be effective as a maintenance therapy, either after receiving other drugs or after the stem-cell transplant. If Revlimid is approved as a maintenance therapy, then its sales will increase further. Celgene announced that additional results from the study will be presented in 2010.
 
Revlimid is currently approved for treating Myelodysplastic Syndromes (MDS). The drug is also approved in combination with dexamethasone to treat MM patients who have undergone at least one prior treatment. Currently 46,000 Americans suffer from MM, a cancer which affects plasma cells. In addition to Revlimid, the company’s product portfolio includes Vidaza for MDS, which should also drive growth.
 
However, sales of Celgene’s Thalomid have been declining. We feel this decline will continue since more safe and effective drugs are available for multiple myeloma in the form of Revlimid and Takeda’s Velcade.
 
Currently, we are Neutral on Celgene.
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