Cowen Top Analyst Weighs in on Celgene Corporation (CELG) Following Pivotal REMARC Trial Results

Celgene Corporation (NASDAQ:CELG) just released results from a phase 3, randomized, double-blind, international clinical REMARC study to investigate its pipeline drug Revlimid against a placebo in maintenance therapy for patients with large B-Cell lymphoma (DLBCL). Cowen analyst Eric Schmidt joins the conversation, weighing in with a Buy rating and a price target of $150.00, marking a nearly 43% increase from where the shares last closed.

Of the five pivotal trials Revlimid must face when testing for success with Non-Hodgkin’s Lymphoma clinical research, Schmidt considers this most recent REMARC trial the most challenging. As such, it is a major positive that the drug achieved its target of progression-free survival.

The REMARC study proved to be positive in demonstrating improvement for progression-free survival, indicating the treatment does work. Where Revlimid critically fails, however, is in showing real impact to patients’ rate of overall survival. For this reason, Schmidt believes Revlimid has failed to show compelling benefit, and for now, Celgene will have to pass on pursuing a label for the dataset.

Though there exists plenty of reason to be bearish, Schmidt still holds onto optimism, as there are four other pivotal trials that await, and the analyst believes these upcoming trials will hold less obstacles for Revlimid to tackle. Though Schmidt admits the drug has currently missed the mark, he counters, “However, we are encouraged that the trial met its primary endpoint, as this signals that Revlimid is active in DLCBL.”

Because of this demonstrated activity, the analyst asserts that this makes him all the more optimistic for Revlimid’s outlook as far as future Non-Hodgkins Lymphona clinical trials are concerned. These trials are specifically “designed to test the R-squared regimen and/or Revlimid in non-GCB subtypes (settings that have greater support from Phase II data)” and down the road, the analyst is reassured that they “will prove positive.”

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, Eric Schmidt is a five-star ranked analyst, earning a ranking of #109 out of 4,079 analysts. Schmidt has gained a solid success rate of 50% coupled with a high average of 18% in returns per recommendation he makes.

TipRanks analytics exhibit CELG as a Strong Buy. Of the 18 analysts offering recommendations for Celgene Corporation in the last 3 months, 83% rate a Buy, with the remaining 17% maintaining a Hold. The 12-month average price target stands at $140.64, marking a 30% upside from where the stock is currently trading.


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