Even before today’s earnings miss, investors were unnerved by the failure of mongersen, a potential treatment for the intestinal disorder Crohn’s disease that Celgene had purchased for $710 million. Now, the earnings miss could cause investors to ask questions not just about Celgene, but also about the biotech sector in general. Celgene is an important company, and not just because it is big and because its stock has been consistently delivering. But drug investors have always preferred top-line growth with an earnings miss, as Bristol-Myers Squibb produced, today, to the reverse. But that’s why the Otezla miss stings so much: this is supposed to be the hope for the future, and its not performing as Celgene executives or analysts expected.

Source: Forbes October 26, 2017 15:45 UTC