Celgene Corporation (NASDAQ:CELG) announced its intention to offer, subject to market and other conditions, senior unsecured notes under a shelf registration statement on Form S-3 on file with the Securities and Exchange Commission. The interest rate, the maturity dates and other key terms of the offering are to be determined at the time of pricing.
Celgene expects to use the net proceeds from the offering to finance a portion of the acquisition of Receptos, Inc. and the remainder for general corporate purposes, which may include, without limitation, further development of Celgene’s clinical and pre-clinical programs, capital expenditures, general corporate development activities, meeting working capital needs, share repurchases of Celgene’s common stock and repayment of some or all of Celgene’s outstanding commercial paper.
J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated are acting as joint book-running managers and representatives of the several underwriters. (Original Source)
Shares of Celgene Corporation closed last Friday at $131.25. CELG has a 1-year high of $140.72 and a 1-year low of $83.16. The stock’s 50-day moving average is $123.93 and its 200-day moving average is $118.78.
On the ratings front, Celgene Corporation has been the subject of a number of recent research reports. In a report issued on July 27, Morgan Stanley analyst Matthew Harrison maintained a Hold rating on CELG, with a price target of $134, which represents a slight upside potential from current levels. Separately, on July 24, Canaccord Genuity’s John Newman reiterated a Buy rating on the stock and has a price target of $190.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Matthew Harrison and John Newman have a total average return of 13.7% and 15.9% respectively. Harrison has a success rate of 75.0% and is ranked #806 out of 3724 analysts, while Newman has a success rate of 59.3% and is ranked #153.
The street is mostly Bullish on CELG stock. Out of 8 analysts who cover the stock, 6 suggest a Buy rating and 2 recommend to Hold the stock. The 12-month average price target assigned to the stock is $146.00, which implies an upside of 11.2% from current levels.