Celgene (NASDAQ:CELG) is down over 2 percent since a downgrade by Argus Research on Friday over a concern that it was becoming too reliant on Revlimid as a source of revenue. People sold off on Friday and Monday over concerns about the future implications for Celgene when the patent for Revlimid expires. In my opinion, there was an overreaction by the market following this downgrade by Argus Research. Any dips caused by further analyst downgrades over concerns about Celgene's reliance on Revlimid should be bought because they simply do not make any sense.
Last quarter, Celgene reported that around 64 percent of its revenue was because of sales from its blockbuster drug Revlimid. I can see why at first glance this seems like a horrible thing that over half of its revenue comes from one drug, but Celgene is definitely not a one-trick pony.
