The annual meeting of the American Society of Clinical Oncology (commonly known as ASCO) is around the corner. As usual, abstracts get released ahead of the meeting and stock prices rise or fall on the market’s reaction.
Yesterday, Celgene (NASDAQ:CELG) announced that data from more than 60 company-sponsored, cooperative group and investigator-initiated clinical studies evaluating Celgene agents will be presented at the ASCO. According to Oppenheimer analyst Leah R. Cann, the most impactful to Celgene are those for Pomalyst as a triplet treatment; Revlimid in combination with Rituxan compared to chemo therapy regimens; JCAR017 in DLBCL; bb2121 in multiple myeloma; and potentially Abraxane in squamous cell lung cancer.
Cann opined, “The OPTIMISMM results support our expectations for Pomalyst’s use in previously treated multiple myeloma patients. Investigator conclusions in the RELEVANCE abstract suggest further investigation in this setting may be warranted. TRANSCEND data continue to be positive for JCAR017, which could be approved in 2019 and provide upside, as could bb2121 based on the CRB-401 data continuing to impress. Data for Abraxane for use in a new setting, squamous cell lung cancer, will be part of a late breaking presentation.”
Cann reiterates an Outperform rating on Celgene shares, with a price target of $163, suggesting the stock has a favorable risk-versus-reward trade-off at its current price.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Leah R. Cann has a yearly average return of 15.8% and a 59% success rate. Cann has a -24.3% average return when recommending CELG, and is ranked #377 out of 4801 analysts.
If we step back and look at the bigger picture, we can see that overall the stock has a ‘Buy’ analyst consensus rating. In the last three months, the stock has received 13 buy ratings and 8 hold ratings. With an average analyst price target of $117.13, analysts are projecting upside potential of 47% from the current share price.