Cowen top analyst Eric Schmidt is out with his commentary on shares of Celgene Corporation (NASDAQ:CELG) after the biotech giant released preliminary data from its oral pipeline drug GED0301’s CD-001 endoscopy trial in patients with Crohn’s disease.
Schmidt believes, “Celgene released top-line data from a 12-week analysis of GED0301’s Phase Ib endoscopy trial in Crohn’s disease. Given the lack of data detailed information, absence of a control arm, and limited historical comparator data, we think it impossible to place GED0301’s activity into much context. We expect CELG shares to strengthen as focus turns to other assets.”
“We think data from randomized, controlled trials will be needed for investors to evaluate the drug’s prospects. Hence, we expect focus on GED-0301 to fade until such data are available in 18-24 months. We believe many investors were cautiously position heading into the CD-001 data release, and expect that with this milestone now in the past, CELG shares will strengthen,” he concludes.
In light of his expectation for bolstered shares following this trial, the analyst reiterates an Outperform rating on CELG with a price target of $150, which represents a nearly 44% increase from where the shares last closed.
As usual, we like to include the analyst’s track record when reporting on new analyst notes to give a perspective on the effect it has on stock performance. According to TipRanks, top five-star analyst Eric Schmidt has achieved a high ranking of #62 out of 4,124 analysts. Schmidt upholds a 52% success rate and yields 21.2% in his annual returns. However, when recommending CELG, Schmidt loses 0.1% in average profits on the stock.
TipRanks analytics demonstrate CELG as a Strong Buy. Based on 18 analysts polled in the last 3 months, 15 rate a Buy on CELG, while 3 maintain a Hold. The 12-month average price target stands at $142.50, marking a 36% upside from where the stock is currently trading.