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Shares of



gained Thursday after the biotech company reported record second-quarter revenue and raised full-year guidance, thanks largely to the success of its drug Thalomid.

The New Jersey-based company said net income quadrupled to $12.4 million, or 14 cents a share, compared to $2.9 million, or 3 cents a share, in the second quarter of last year.

Revenue increased 30.4% to $87.8 million, as sales of Thalomid -- a leprosy treatment that is also used by doctors to treat cancer -- rose 35.9% to $74.6 million.

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Analysts were expecting a profit of $9.61, or 11 cents a share, on revenue of $89.9 million.

Celgene increased its full-year EPS forecast to 50 cents to 60 cents a share, from its previous range of 42 cents to 52 cents a share. Expected revenue was upped to a target of $370 million to $390 million, from $365 million to $385 million.

The consensus estimates are for EPS of 52 cents and revenue of $383 million.

During the quarter, Celgene invested approximately 44% its revenue into R&D, partly to continue development of Thalomid, which is a version of thalidomide, a morning sickness drug for pregnant women that deformed thousands of newborns in the 1950s and 1960s.

Prohibited in the United States, thalidomide was sold in foreign markets as a sedative and as a treatment for morning sickness. Although it was pulled from the market after some 10,000 cases of horrific birth defects, thalidomide has remained a subject of medical research for decades. It has been tested on a variety of cancers and as a treatment of painful mouth sores in AIDS patients.

Celgene's version of thalidomide, called Thalomid, is a popular cancer treatment even though the Food and Drug Administration hasn't approved the drug for cancer. It's perfectly legal: The FDA approved the drug in 1998 for treating serious skin lesions caused by leprosy. But doctors can prescribe a drug for 'off-label' treatments as long as the FDA has endorsed the drug for a single disease, and have been using it to treat multiple myeloma, the second most common blood cancer.

Shares rose $1.77, or 3.6%, to $50.51 in trading volume, almost twice the daily average of about 1.5 million.