(Bloomberg) -- Celgene Corp. dropped 16 percent in early U.S. trading after lowering its long-term profit target.
The drugmaker, known for its hematology and oncology treatments, is under pressure to refill its pipeline as its top-selling cancer treatment faces looming competition from generics. Last week, Celgene halted a final-stage trial of an experimental Crohn’s disease drug that analysts had anticipated could become a blockbuster, raising concerns that its 2020 profit guidance might be at risk.
On Thursday, the Summit, New Jersey-based company cut that long-term earnings guidance by 50 cents to $12.50 a share.
Shares were down 16 percent to $100.50 at 8:46 a.m. in New York. Through Wednesday’s close, they had already dropped 13 percent in a week, after halting the Crohn’s drug trial.
The pressure is on for experimental drugs such as ozanimod, which is being tested in Crohn’s, ulcerative colitis and multiple sclerosis, to succeed, Brian Abrahams, an analyst at RBC Capital Markets, said in a note to investors. He rates Celgene his top pick.
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