Celgene share plunge after trials disappoint

Shares of Celgene Corp. plunged today, as analysts were disappointed with results from trials of Celgene's drug Revlimid as a treatment for a blood cancer.

The stock gave up $9.16, or 17 percent, to $48.20 in morning trading.

On Sunday, Celgene reported results from two late stage tests of Revlimid, combined with a steroid, in treating patients recently diagnosed with multiple myeloma.

One trial compared Revlimid combined with a steroid, dexamethosone, to only dexamethosone. The second trial combined Revlimid with two different doses of dexamethosone. Analysts voiced some dissatisfaction with the levels of "complete response," or the number of patients who experienced total remission.

Several analysts said Revlimid will still become the primary treatment for the disease, beating out Millennium Pharmaceuticals Inc.'s Velcade. However, Christopher Raymond of Robert W. Baird & Co. described the trial data as "a resounding disappointment" that could hurt Revlimid sales. Millennium is based in Cambridge.

"We came away from ASH surprised and disappointed by Revlimid's showing in front-line multiple myeloma," he said, referring to the annual meeting of the American Society of Hematology. "We believe this meeting could serve to blunt front-line and other off-label Revlimid use."

Raymond said Revlimid did not lead to a statistically significant improvement in survival compared to the steroid alone. He kept a "Neutral" rating on the stock, and lowered his price target to $61 per share from $63. (AP)