The S&P Biotech Index is now down 9% from its early October highs, extending losses today thanks to the collapse in Celgene’s share price after it lowered its outlook.
As Bloomberg reports, Celgene Corp. dropped 18 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.
Which has slammed the Biotech Index lower…
Double top anyone?