Celgene Corporation (NASDAQ: CELG) is supposed to be one of the more promising biotechs out there. After all it was worth some $29.6 billion in market capitalization at Wednesday’s close. Now shares are down more than 12% and destroying more than $3 billion in market value.
The biotech giant announced that it has now withdrawn its new indication submission for Revlimid to European regulators. Revlimid is ultimately seeking approval for the cancer multiple myeloma which affects certain white blood cells. While today’s implosion is a bad one, Celgene was quick to not that it plans to resubmit its Revlimid application with more current data.
Celgene also said that it is re-evaluating Revlimid’s newly diagnosed submission to the U.S. Food and Drug Administration. It is now targeting a new drug application with the FDA at some point in 2013. The company said that it will continue with applications for Revlimid in Switzerland, Australia and other markets.
Thomson Reuters had estimates of $4.79 EPS and $5.47 billion in sales in 2012 and the consensus was $5.61 EPS and $6.17 billion in revenues in 2013. Analysts will likely be taking those figures down for sales and for higher R&D expenses. The consensus price target before this news came out was almost $85.00.
Celgene shares had already been having problems as the $67.16 close compared to a 52-week trading range of $51.70 to $80.42. Now shares are down about 12% and trading closer to $59.00 in active trading.
JON C. OGG