Celgene Downgraded To Netural As Company Might Be Relying Too Heavily On Revlimid

BTIG's Dane Leone downgraded Celgene Corporation (NASDAQ: CELG) from Buy to Neutral.

Leone noted Celgene has made multiple innovate early stage investments "but…unsure of upside to current consensus estimates." The majority of the company's sales growth is dependent on the success of Revlimid penetrating the Non-Hodgkin Lymphoma's market.

Consensus estimates Revlimid Sales to be around $10 billion in 2020. Leone estimates Revlimid will account for 45 percent of total sales through 2020.

Leone said, "the Street already has incorporated significant expectations for expansion into Diffuse B-Cell Lymphoma and other NHL sub-types" for Revlimid. The analyst is unsure whether the consensus estimates has such a large upside.

Revlimid's expansion will also be limited by Celgene's focus on new B-cell therapies moving towards line treatment over the next five years. Darzalex in Multiple Myeloma and CAR T-cell therapies within Lymphoma and Leukemia are examples of Celgene's drug pursuits that could detract from Revlimid's expansion.

Shares of Celgene were trading up 0.68 percent at $106.24.