Yesterday afternoon, Celgene Corporation (NASDAQ:CELG) hosted an analyst event with special attention to protein homeostasis. On the heels of the event, Piper Jaffray analyst Joshua Schimmer is left bullish on the biotech giant and highlights his most interesting takeaways, reiterating an Overweight rating on CELG with a price target of $145, which represents a 41% increase from where the shares last closed.
First, Schimmer notes a new kind of understanding as a result of the discovery of imids, immunomodulatory derivatives that have the power to modulate immune responses.
Second, Schimmer likes CELG’s “promising” new diffuse large b-cell lymphoma (DLBCL) drug, which is representative of a fresh approach to leverage Revlimid’s specific protein effects.
Third, the analyst sees potential beyond Revlimid, with CELG’s new proprietary platform that builds upon the drug’s mechanism. This could result in being able to target proteins that in any other circumstance would remain “undruggable.”
Fourth, Schimmer gained a newfound appreciation for the way Celgene approaches savvy collaborations.
“Overall we came away much more knowledgeable and impressed with the efforts the company is making in the field,” Schimmer asserts.
Moreover, the analyst explains, “One of the things we found most impressive was showcasing of the company’s organic R&D efforts. While often thought of as an inlicensor of science, we are increasingly impressed with CELG’s ability to build its own scientific capabilities, without the baggage of the ‘not-invented here’ inertia or antiquated management entrenched in old chemistry.”
“CELG’s vast array of enabling partnerships with these new and exciting companies is a form of ‘talent retention’ which we believe represents a different philosophical approach from other companies and one which we also believe positions CELG to benefit from the best and brightest minds while retaining continuity of expertise,” Schimmer concludes.
As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks, two-star analyst Joshua Schimmer is ranked #2,796 out of 4,200 analysts. Schimmer has a 46% success rate and earns 0.0% in his annual returns. However, when recommending CELG, Schimmer loses 4.5% in average profits on the stock.
TipRanks analytics demonstrate CELG as a Strong Buy. Based on 20 analysts polled in the last 3 months, 17 rate a Buy on CELG, while 3 maintain a Hold. The consensus price target stands at $140.75, marking a nearly 37% upside from where the stock is currently trading.