J.P. Morgan Pounds the Table on Celgene Corporation (CELG)

J.P. Morgan analyst Cory Kasimov is upbeat about the prospects of biopharmaceutical giant Celgene Corporation (NASDAQ:CELG), discussing optimistic outlook guidance for the upcoming years into 2020, as part of his Summer Spotlight Series. Kasimov reiterates an Overweight rating along with a price target of $136.00.

Kasimov believes that CELG’s existing franchises should continue as key drivers of the company’s impressive growth into the 2020’s. Specifically, the analyst sees Revlimid’s entrenchment as a backbone therapy in multiple myeloma, which could lead to increased duration and market share gains from inclusion in novel combos and/or use in maintenance.

In addition, four existing Phase 3 assets could potentially hit the market prior to the end of the decade. Kasimov explained, “Of CELG’s two acquired I&I assets, ozanimod in MS could be approved first in 2018. Expansion to ulcerative colitis (UC) and the launch of GED-0301 in Crohn’s disease (CD) are both anticipated in ‘19. In our view, these two products represent key higher profile attempts to meaningfully help pick up the slack as Revlimid’s IP begins to roll off in 2022+, with peak sales potential of >$4.0B for ozanimod and ~$2.0B for GED-0301. In addition, two partnered Phase 3 assets – luspatercept in beta-thal (Acceleron) and AG-221 in AML (Agios) – also both have the potential to launch before the end of the decade. Each one has generated proof-of-concept data and is targeting a large and generally underserved market opportunity.”

“We are confident in the company’s current fundamentals, above average growth rate, and ability to productively use its cash to continue building a broad pipeline that could provide important levers for the future,” Kasimov concluded,

As usual, we suggest you take any analyst’s notes with a grain of salt. They often successfully move stock prices, but it is always wise to take everything in context. According to TipRanks, Cory Kasimov ranks at #3,964 out of 4,064 analysts, carrying a 25% success rate as well as an average loss of 15.6% in his returns.

TipRanks analytics show Celgene to be a Strong Buy, a consensus drawn based on a polling in the last 3 months. Out of 18 analysts, 15 rate the stock a Buy, while 3 maintain a Hold. The average 12-month price target for the stock is $142.58, indicating a 39% increase from where shares last closed.


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