Celgene plunges on concerns of secondary malignancies with blockbuster multiple myeloma drug Revlimid; news from Novo Nordisk, B-MS at ASH

USA-based Celgene (Nasdaq: CELG) saw its shares fall as much as 10% and closing 8% lower at $55.64 yesterday, when the company presented mixed date on its multiple myeloma drug Revlimid (lenalidomide) at American Society of Hematology (ASH) meeting in Orlando, Florida, with a trial investigator noting that there had been more occurrences of secondary malignancies in patients receiving a maintenance dose of the drug compared with placebo.

Revlimid sales rose 43% in the third quarter to $641 million, around 70% of the firm’s total turnover for the period. Baird analyst Christopher Raymond, quoted by Yahoo.Finance, said in a research note that while the possibility of secondary malignancies may "raise a few eyebrows, we think this signal is completely explainable and would use any weakness in the stock as a buying opportunity." Mr Raymond said the drug's safety is worth watching, but saw nothing to change the firm's outperform rating on Celgene.

50% reduction in disease progression