The 3 Most Important Drugs in Celgene's Pipeline

Image source: OncoMed Pharmaceuticals.

OncoMed has an interesting way of attacking cancer. Instead of trying to contain the proliferation of existing cells, OncoMed is developing drugs that target cancer stem cells, or CSCs, which are typically impervious to chemotherapy and radiation therapy. It's believed by researchers that CSCs are also what's responsible for cancer recurrence and metastasis.

OncoMed's lead product is demcizumab, a monoclonal antibody that targets DLL4, an activator notch that's important for the development of cancer. Although it's early in the development process, results from a phase 1b study involving demcizumab suggested the drug was safe and gave hints of early efficacy. The real test will come in the DENALI and YOSEMITE phase 2 trials for first-line non-small cell lung cancer and first-line pancreatic cancer where we'll be able to get a good look at the efficacy of demcizumab relative to a placebo.

Celgene and OncoMed are currently partnered on up to six developing compounds, but its demcizumab and its blockbuster potential that looks, by far, the most intriguing.

What now for Celgene?

Now that you have a better idea of what's in Celgene's pipeline, you might be wondering what you should do with Celgene's stock. My suggestion? Consider buying in or adding more.

Celgene's ability to grow organically, boost its growth through collaborations, and purchase growth on an as-needed basis, gives it multiple ways to churn out double-digit sales growth. Plus, Celgene announced a $4 billion addition to its share repurchase program earlier this year to reward its faithful investors. Considering that Celgene's PEG ratio is still below one and its collaboration and in-house pipeline is incredibly deep, I'd suggest taking a good look at potentially adding this stock to your long-term portfolio.

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Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen nameTMFUltraLong, track every pick he makes under the screen nameTrackUltraLong, and check him out on Twitter, where he goes by the handle@TMFUltraLong.The Motley Fool owns shares of and recommends Celgene. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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