Thinking more strategically, Onyx is a reminder that these smaller biotech companies can be terrific speculations. A company that has serious entries in kidney, liver and now blood cancers is a company that can jumpstart any old-line pharmaceutical company that needs to buy growth.
And, yes, Celgene is a reminder that owning a stock that is so dependent upon one drug for two-thirds of your revenue can make it more dicey than you might like, even as this $3.2 billion drug has been the envy of many a pharmaceutical outfit. It is now imperative that Celgene show growth away from Revlimid while at the same time be able to make a claim that it is superior to anything Onyx has to offer in the blood cancer category, if, indeed, it can do so.
In sum, I want to be a buyer of Celgene. But I am a chastened buyer, of that you can be most certain.
Action Alerts PLUS, which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned.
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