How Big of a Deal Is Celgene's Flop?
Celgene (NASDAQ: CELG) shuttered two GED-301 Crohn's disease trials this week after an interim look at data by independent monitors proved disappointing. The late-stage failure dings Celgene's pipeline and it will result in a writedown, but investors might not want to sell shares on the news. Why? Because Celgene's got plenty of other drugs in its pipeline that could pan out, including one that could still allow it to become a big player in the indication someday.
Celgene has a voracious appetite for acquisitions and collaborations and frankly, it would be surprising if they didn't end up with a few duds along the way, especially since historically, about 40% of phase 3 trials fail.
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Source: Fool.com
