J.P. Morgan analyst Cory Kasimov came out today with his views on Celgene Corporation (NASDAQ:CELG), after the company announced that it has entered into an exclusive collaboration agreement with AstraZeneca plc (ADR) (NYSE:AZN) and MedImmune (AZN’s global biologics research and development arm), for the development and commercialisation of MEDI4736 across a range of blood cancers including non-Hodgkin’s lymphoma, myelodysplastic syndromes and multiple myeloma. The analyst rates CELG a Neutral.

Kasimov wrote, “On the surface, this seems like a good, strategic deal for CELG as it gets them into the PD-L1/PD-1 game, which is increasingly looking like it will be the backbone for many combo therapies across the oncology landscape (including heme where promising initial data has begun to emerge). We don’t think this deal is cheap but probably well worth the cost to be a part of the growing immuno-oncology field.”

“We also note that this is a strategic license agreement, unlike many other immuno-oncology collaborations in place (where no rights are changing hands). Work will initially focus on the development of MEDI4736 in combo with CELG’s pipeline products, as well as other novel heme agents, for the treatment of NHL, MDS, and MM.”, the analyst added.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Cory Kasimov has a total average return of 14.5% and a 65.9% success rate. Kasimov is ranked #287 out of 3579 analysts.

CELG Chart