As you'll recall, Celgene's shares declined substantially after the company said that Abraxane hadn't extended progression-free survival in lung cancer patients. Still, Celgene seems fairly optimistic about the acquisition of Abraxis Bioscience, pointing to the company's confidence that Abraxane can hit $1 billion in sales by 2015. Part of that comes from confidence that Abraxane will be approved by the Food and Drug Administration for lung cancer based on the response rate data, but also because Celgene believes it can expand the sales in the breast cancer market better than Abraxis Bioscience ever did.
Celgene really needs a hit from Abraxane and other drugs it may license or purchase. Revlimid is still growing well -- 42% year over year in the fourth quarter -- but that can't continue forever. Given that it makes up two-thirds of Celgene's revenue, the slowdown is going to have a dramatic effect on the company's growth rate if it doesn't have newer drugs with rocket-ship-shaped growth curves to make up the difference.
Interested in keeping track of Celgene as it launches Abraxane toward blockbuster status? Click here to add it to My Watchlist, which will help you keep track of all our Foolish analysis on Celgene.
Fool contributor Brian Orelli, Ph.D., doesn't own shares of any company mentioned in this article. The Fool owns shares of JPMorgan Chase. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool has a disclosure policy.
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