Reduced 2020 guidance wipes $14 billion off Celgene's market value

In two hours of trading on Thursday, nearly $14 billion was wiped off the market value of Celgene (Nasdaq: CELG) as the US biotech’s share price plummeted by 18% to $98.13.

Revised 2020 sales guidance, lowering the company’s estimate to between $19 billion and $20 billion from Celgene’s previous forecast of more than $21 billion, is likely to have caused much of the investor anxiety. The adjusted diluted earnings per share (EPS) target for 2020 has been also been reduced to $12.50 from the earlier $13.

Celgene missed analysts’ estimates with its sales figure for the latest quarter. They had expected revenue of $3.42 billion but the total came in at $3.29 billion, although this was an 11% rise on the same period in 2016.