Celgene shares get hammered
Celgene's shares fell roughly 15 percent to $48.90 on Nasdaq, while Millennium's shares rose nearly 10 percent to $16.53.
Until recently, Millennium's injected drug Velcade has been seen as the underdog to Celgene's more convenient, oral drug Revlimid. But data presented over the weekend at the annual meeting of the American Society of Hematology (ASH) is giving investors greater confidence that Velcade will be able to hold its own.
So, is the Celgene buyout of Pharmion in trouble? Celgene is below the collar lower range of $56.16, and Pharmion shares dropped on the news.
As Celgene's stock value falls, the actual value of the Pharmion buyout could suffer, said Banc of America Securities analyst William T. Ho, if the stock price remains below the $56.15 lower boundary of the deal's collar.
Advantage of oral formulation (of Revlemid) can only take one so far.