BMO Weighs in on Celgene Corporation (CELG) Ahead of Mongersen Phase 2 Data

BMO believes Mongersen has the potential to achieve $4 billion in revenue

BMO analyst Ian Somaiya weighs in on shares of Celgene Corporation (NASDAQ:CELG) as the biotech giant is set to soon release upcoming Crohn’s disease-treating Mongersen endoscopic response data from the CD-001 Phase 2 trial.

Somaiya anticipates that the trial data will, “[…] represent a clearing event for CELG shares. Investors have been reluctant to get in front of the data given limited correlation between CDAI and endoscopy measures and complex comparison to biologics’ studies, which used different endpoints / responder analyses vs. CELG guiding to 25% benefit at 12W in SESCD. For shares to move higher, the trial needs to demonstrate CDAI benefit (P3 primary endpoint) in line with IGON-1 P2 trial and endoscopic improvement correlated with therapy duration.”

As such, Somaiya reiterates an Outperform rating on CELG with a $141 price target, which represents a 23% increase from where the shares last closed. For the analyst, Mongersen has the potential to achieve blockbuster sales. Somaiya forecasts the pipeline drug will garner a peak of $4 billion in revenue.

From the analyst’s perspective, Phase III readouts could more than double the opportunity of marketed products. Additionally, the trial data could offer visibility on pipeline drugs like Mongersen to hopefully enable Celgene to overcome the patent loss of its once leading pipeline drug, Revlimid.

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, five-star analyst Ian Somaiya is ranked #199 out of 4,122 analysts. Somaiya has a 59% success rate and realizes 14.2% in his average returns. When recommending CELG, Somaiya earns 24.7% in average profits on the stock.

TipRanks analytics demonstrate CELG as a Strong Buy. Based on 18 analysts polled in the last 3 months, 16 rate a Buy on CELG, while 2 maintain a Hold. The 12-month price target stands at $143.86, marking an almost 26% upside from where the stock is currently trading.

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