A biotech bargain?

Biotech stocks are rarely value stocks, but Celgene (Nasdaq: CELG) is an exception, with a forwardlooking price-to-earnings, or P/E, ratio recently below 8. Why haven't investors been snapping up shares? Well, many worry about Celgene's overreliance on multiple myeloma drug Revlimid, and about the drug losing its patent protection. Revlimid makes up more than 60 percent of Celgene's total sales and is expected to generate nearly $10 billion in sales in 2018. But Celgene has protected its key product through settlements and agreements. A December 2015 agreement with a handful of generic producers will keep a flood of generics off pharmacy shelves until the end of January 2026. That leaves several years in which Celgene can profit handsomely from one of the world’s best-selling drugs. There's also been backlash over Celgene's flubbing of its new drug application for the multiple sclerosis drug ozanimod, which was being counted on to help diversify the company's sales away from Revlimid. But even with the delay, ozanimod could still be a multibillion-dollar drug when it does come to market. Celgene's other key cancer and inflammation medicines look to be on track to grow organically based on volume, price and labelexpansion, and its pipeline sports more potential blockbusters. There seems to be little for investors to worry about. (The Motley Fool owns shares of and has recommended Celgene.)