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It has always been said that past performance doesn’t always influence future results, but when you are in the biotechnology business, the same rule doesn’t always apply. 

Shares in Celgene, one of biotech’s most successful companies, has dropped 9% following a refusal from the Food and Drug Administration (FDA), writes Forbes

The FDA refused to consider the company’s application for ozanimod, an experimental treatment for multiple sclerosis, in the latest series of disappointing blows. 

A “Refuse To File” or “RTF” is an embarrassing turn for any company, but the delays installed by such a decision are even worse. 

“We view ozanimod as one of the most, if not the most, important pipeline programs for Celgene, though without additional info, it is difficult to know how the material of a setback this is,” explained RBC, analyst Brian Abrahams, in a research note emailed to clients. 

Despite the bad news, Celgene reiterated its long-term financial guidance, which forecasts total revenue in the range of $19-20 billion and adjusted earnings greater than $12 per share. The company is confident that the shortfall in ozanimod sales can be made up of other products.