Jim Cramer -- Now Is Not the Time to Bail on Celgene
Shares of Celgene (CELG) - Get Report are down 5.4% on Thursday. The company beat on earnings estimates, and despite growing revenues by 17.7% year over year, Celgene slightly missed analysts' expectations.
Revlimid sales came in below expectations, which seems to the culprit behind the stock's selloff, said TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, on CNBC's "Stop Trading" segment.
Sales for the blood cancer drug came in at $1.45 billion, as analysts were looking for Revlimid sales of $1.48 billion. Although the sales were a disappointment, investors shouldn't sell the stock simply because of this shortfall, Cramer said.
CELG data by YCharts
The company has several upcoming Phase 3 tests for its Crohn's drug and relapsing multiple sclerosis treatments. It also has the integration of its Receptos acquisition, Cramer said.
Robert Hugin, the company's CEO, has proved to be "a very good executive," Cramer said, adding that investors who have bet against Celgene in the past have paid the price for doing so.
Shares of Celgene are still up 7.7% on the year.
At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.