Oppenheimer analyst Leah R. Cann reiterated a Buy rating on Celgene (NASDAQ: CELG) today and set a price target of $163. The company’s shares closed yesterday at $79.54, close to its 52-week low of $74.13.
Cann noted:
“Revlimid and Pomalyst currently account for nearly 77% of Celgene’s product revenue. While we estimate this will decrease to approximately 68% by 2022, it is still the company’s principle driver. With these drugs coming off patent shortly after 2022, there is a concern as to how these revenues can be replaced. While it is early, and the timing is not yet clear, the compounds Celgene highlighted today appear to have the potential to actually replace Revlimid and Pomalyst. This is the first time we have seen scientific evidence, and a strategy, where these compounds could not just be added to Revlimid and Pomalyst regimes, but could actually replace Revlimid and Pomalyst.”
According to TipRanks.com, Cann is a 5-star analyst with an average return of 20.4% and a 59.9% success rate. Cann covers the Healthcare sector, focusing on stocks such as Miragen Therapeutics Inc, CytomX Therapeutics Inc, and Crispr Therapeutics AG.
Currently, the analyst consensus on Celgene is Moderate Buy and the average price target is $116.13, representing a 46.0% upside.
In a report issued on May 21, RBC Capital also maintained a Buy rating on the stock.
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Based on Celgene’s latest earnings release for the quarter ending March 31, the company reported a quarterly revenue of $3.57 billion and net profit of $846 million. In comparison, last year the company earned revenue of $2.87 billion and had a net profit of $941 million.
Based on the recent corporate insider activity of 68 insiders, corporate insider sentiment is neutral on the stock. Earlier this month, Gilla Kaplan, a Director at CELG sold 27,750 shares for a total of $2,182,538.
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Celgene Corp. is an integrated global biopharmaceutical company, which engages in the discovery, development and commercialization of therapies for the treatment of cancer and inflammatory diseases. Its targeting areas include intracellular signaling pathways, protein homeostasis and epigenetics in cancer and immune cells, immunomodulation in cancer and autoimmune diseases and therapeutic application of cell therapies. The company’s products include Revlimid, Vidaza, Thalomid, Pomalyst/Imnovid, Abraxane, and Istodax. Celgene was founded by David Stirling and Sol Barer in 1986 and is headquartered in Summit, NJ.
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