Should You Avoid Celgene Stock After Its Big Pipeline Setback?

Should You Avoid Celgene Stock After Its Big Pipeline Setback?

Even some of the biggest and best have things go wrong every now and then. Celgene (NASDAQ: CELG) has been the best-performing biotech stock over the last five years among big biotechs with market caps over $50 billion. And now, something has gone terribly wrong for Celgene.

The company announced after the market closed on Thursday that it was discontinuing a late-stage study of GED-0301 (mongersen) in treating Crohn's disease, and wouldn't start another planned late-stage study of the drug in the same indication. Celgene stock sank on Friday following the update. With this big pipeline setback, should you now avoid Celgene stock altogether?

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Source: Fool.com