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Celgene Corporation (CELG) is scheduled to report its Q2 2012 results on July 26, 2012, before market opens. The street expects EPS and revenue of $1.18 and $1.35B, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from CELG and the news from its closest competitors.

Celgene Corporation Revenue and Net Income History

Recent EPS Actuals vs. Estimates

The company has failed to meet analysts' estimates in the last two quarters. In the last quarter it reported $1.08 EPS, failing to meet analyst estimates of $1.13.

Celgene Corporation EPS Historical Results vs Estimates

The consensus EPS estimate is $1.18 based on 24 analysts' estimates, up from $0.89 a year ago. Revenue estimates are $1.35B, up from $1.18B a year ago. The median target price by analysts for the stock is $75.00.

Average recommendation: Buy

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On June 28, 2012, Argus upgraded the company from Hold to Buy.
  • On June 22, 2012, UBS reiterated Buy rating for the company.
  • On June 22, 2012, The Benchmark Company reiterated Buy rating for the company.
  • On June 22, 2012, Cantor Fitzgerald reiterated Buy rating for the company.
  • On June 22, 2012, Barclays reiterated Overweight rating for the company.
  • On June 18, 2012, RBC Capital downgraded the company from Outperform to Sector Perform.
  • On April 27, 2012, UBS reiterated Buy rating for the company.
  • On April 3, 2012, Cantor Fitzgerald initiated Buy rating for the company.
  • On April 2, 2012, Barclays reiterated Overweight rating for the company.
  • On January 27, 2012, Barclays Capital reiterated Equal Weight rating for the company.
  • On January 26, 2012, Argus downgraded the company from Buy to Hold.

Latest News

  • On July 12, 2012, Celgene International Sàrl, a subsidiary of Celgene Corporation announced top-line results from the PALACE-1 study, the first of three pivotal phase III, randomized, placebo-controlled studies evaluating the Company's oral small-molecule inhibitor of phosphodiesterase 4 (PDE4) in patients with psoriatic arthritis who had received an oral disease-modifying antirheumatic drug (DMARD), biologic therapy or had failed on an anti-tumor necrosis factor agent.
  • On July 7, 2012, Reuters reported that Celgene Corporation is one of two companies discussing whether to bid for Human Genome Sciences Inc, which seeks an alternative to a hostile offer by British drugmaker GlaxoSmithKline Plc. Conventional wisdom among investors has been that Human Genome was unlikely to find another bidder, as Glaxo reaps 50% of the profit from the lupus drug Benlysta, to which Glaxo and Human Genome share the rights.
  • On June 21, 2012, Celgene Corporation announced that for fiscal 2012, the Company reaffirmed its guidance with total global revenues in the range of $5.4 billion to $5.6 billion.
  • On June 13, 2012, Celgene Corporation announced that the Company's Board of Directors authorized the repurchase of up to an additional $2.5 billion of the Company's common stock.
  • On June 5, 2012, Celgene Corporation's Celgene International Sarl announced its results from a study of ABRAXANE in combination with gemcitabine in patients with resectable pancreatic cancer.
  • On June 3, 2012, Celgene International Sàrl, a subsidiary of Celgene Corporation announced results from multiple presentations evaluating ABRAXANE (paclitaxel protein-bound particles for injectable suspension) (albumin-bound) in combination with carboplatin in patients with advanced non-small cell lung cancer during the 48th American Society of Clinical Oncology (OTC:ASCO) Annual Meeting in Chicago, Ill. The two reports presented data from retrospective analyses of CA-031, the phase III, multi-center, randomized study where patients received either nab-paclitaxel (100mg/m2) weekly plus carboplatin (AUC=6) every three weeks (n=521) or paclitaxel (200mg/m2) every three weeks plus carboplatin (AUC=6) (n=531) as first-line therapy for advanced non-small cell lung cancer.
  • On June 3, 2012, Celgene International Sàrl, a subsidiary of Celgene Corporation, announced results from a randomized study comparing REVLIMID (lenalidomide) plus rituximab to lenalidomide monotherapy in previously treated patients with recurrent follicular lymphoma.
  • On April 26, 2012, Celgene Corporation reaffirmed fiscal 2012 guidance and expects Non-GAAP total revenue to increase approximately 15% year-over-year to a range of $5.400 to $5.600 billion.
  • On April 26, 2012, Epizyme and Celgene International Sàrl, a subsidiary of Celgene Corporation announced the formation of a strategic partnership to discover, develop and commercialize personalized therapeutics for patients with genetically-defined cancers by inhibiting histone methyltransferases (HMTs), an important epigenetic target class.
  • On April 9, 2012, AnaptysBio, Inc., a privately-held therapeutic antibody company, announced a strategic partnership with Celgene Corporation to develop antibodies against multiple therapeutic targets.
  • On March 8, 2012, Celgene Corporation announced that it has completed its acquisition of Avila Therapeutics. Celgene acquired Avila Therapeutics for $350 million in cash, plus up to $575 million contingent upon certain milestones related to AVL-292 and candidates from Avila's discovery program.
  • On February 9, 2012, Celgene Corporation announced that it will invest a total of $15 million in Acetylon Pharmaceuticals via the purchase of Series B-2 Preferred Stock. Celgene does not receive rights or options to Acetylon technology under the terms of the equity purchase agreements.
  • On January 26, 2012, Celgene Corporation confirmed its fiscal 2012 outlook, the Company expects non-GAAP total revenue expected to increase approximately 15% year-over-year to a range of $5,400 to $5,600 million and non-GAAP diluted EPS expected to increase approximately 25% year-over-year to a range of $4.70 to $4.80, guidance assumes a constant share count from December 2011 through 2012.
  • On January 26, 2012, Celgene Corporation and Avila Therapeutics, Inc., a privately held biotechnology company developing targeted covalent drugs that treat diseases through protein silencing, announced a definitive merger agreement under which Celgene Corporation will acquire Avila Therapeutics, Inc. The transaction has been approved by the Board of Directors of each company and is subject to customary closing conditions, including the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Competitors

Amgen (AMGN), Biogen Idec (BIIB), Gilead Sciences (GILD), and Human Genome Sciences (HGSI) are considered major competitors for Celgene Corporation and the table below provides the key metrics for these companies and the industry.

Celgene Corporation key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.

CELG Chart
(Click to enlarge)

CELG data by YCharts

Competitors' Latest Development

  • On July 20, 2012, Law Offices of Howard G. Smith announced that it is investigating potential claims against the Board of Directors of Human Genome Sciences Inc. related to the proposed acquisition of the Company by GlaxoSmithKline PLC. (NYSE:GSK). The transaction is valued at approximately $3.6 billion or $14.25 per share.
  • On July 19, 2012, Amgen, Inc. announced that its Board of Directors declared a $0.36 per share dividend for the third quarter of 2012. The dividend will be paid on Sept.
  • On July 19, 2012, Electronics For Imaging, Inc. announced that it has reached an agreement to sell its headquarters building in Foster City, California for $180 million to Gilead Sciences, Inc. (Gilead).
  • On July 18, 2012, Law office of Brodsky & Smith, LLC announced that it is investigating potential claims against the Board of Directors of Human Genome Sciences Inc relating to the proposed acquisition by GlaxoSmithKline plc.
  • On July 17, 2012, Biogen Idec Inc announced that it has entered into a research collaboration with premier academic and research institutions to sequence the genomes of up to 1,000 patients with amyotrophic lateral sclerosis (ALS) in an effort to gain a deeper understanding about the fundamental genetic causes of ALS. Under the terms of the agreements, Biogen Idec will fund the project at the laboratories of David Goldstein, Ph.D., Director of the Center for Human Genome Variation at Duke University, and Richard M. Myers, Ph.D., President and Director of the HudsonAlpha Institute for Biotechnology.
  • On July 17, 2012, Human Genome Sciences Inc announced that Glancy Binkow & Goldberg LLP is investigating potential claims against the board of directors the Company related to the proposed acquisition of the Company by GlaxoSmithKline PLC. The transaction is valued at approximately $3.6 billion or $14.25 per share.
  • On July 17, 2012, Shareholder rights firm Robbins Umeda LLP announced that it has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by members of the Board of Directors of Human Genome Sciences Inc in connection with their efforts to sell the Company to GlaxoSmithKline plc. On July 16, 2012, Human Genome Sciences announced that it had entered into a definitive merger agreement to be acquired by GlaxoSmithKline.
  • On July 17, 2012, Human Genome Sciences Inc announced that Ryan & Maniskas, LLP is investigating potential claims against the board of directors the Company concerning possible breaches of fiduciary duty and other violations of law related to the Company's efforts to sell Human Genome to GlaxoSmithKline plc in a transaction valued at approximately $3 billion.
  • On July 16, 2012, Reuters reported that Glaxosmithkline Plc is expected to announce an agreement to acquire Human Genome Sciences Inc for about $2.8 billion as soon as Monday, ending three months of its hostile pursuit of the U.S. biotechnology company.
  • On July 16, 2012, Glaxosmithkline Plc and Human Genome Sciences announced that the companies have entered into a definitive agreement under which GSK will acquire HGS for USD14.25 per share in cash.
  • On July 16, 2012, Levi & Korsinsky announced that it is investigating the Board of Directors of Human Genome Sciences Inc (Human Genome or the Company) for possible breaches of fiduciary duty and other violations of state law in connection with the sale of the Company to GlaxoSmithKline plc. Under the terms of the transaction, Human Genome shareholders will receive $14.25 per share of Human Genome stock they own. The transaction has a total approximate value of $3 billion.
  • On July 16, 2012, Gilead Sciences, Inc. announced that the U.S. Food and Drug Administration (FDA) has approved once-daily oral Truvada(emtricitabine and tenofovir disoproxil fumarate), in combination with safer sex practices, to reduce the risk of sexually acquired HIV-1 infection in adults at high risk.
  • On July 10, 2012, Dow Jones reported that Human Genome Sciences Inc said the U.S. Food and Drug Administration set a December 15 action date for its resubmitted biologics license application for the anthrax treatment raxibacumab.
  • On July 7, 2012, Reuters reported that Celgene Corporation is one of two companies discussing whether to bid for Human Genome Sciences Inc, which seeks an alternative to a hostile offer by British drugmaker GlaxoSmithKline Plc. Conventional wisdom among investors has been that Human Genome was unlikely to find another bidder, as Glaxo reaps 50% of the profit from the lupus drug Benlysta, to which Glaxo and Human Genome share the rights.
  • On July 5, 2012, Amgen, Inc. announced the completion of the acquisition of KAI Pharmaceuticals, a privately held company based in South San Francisco. The acquisition was initially announced April 10, 2012 and includes KAI's lead product candidate KAI-4169, which is a agent being studied initially for the treatment of secondary hyperparathyroidism in patients with chronic kidney disease who are on dialysis.
  • On July 5, 2012, Swedish Orphan Biovitrum AB announced that together with Biogen Idec Inc (Biogen) it has initiated two global pediatric clinical trials of the companies' long-lasting recombinant Factor VIII and Factor IX Fc fusion proteins (rFVIIIFc and rFIXFc) in hemophilia A and B. rFVIIIFc and rFIXFc are fully-recombinant clotting factors developed using Biogen's monomeric Fc-fusion technology, which makes use of a natural mechanism to recycle rFVIIIFc and rFIXFc in the circulation in the body.
  • On July 2, 2012, NPS Pharmaceuticals, Inc. announced that it has amended its license agreement with Amgen for royalties from sales of cinacalcet HCl (Sensipar/Mimpara).
  • On June 29, 2012, Biogen Idec Inc and Isis Pharmaceuticals, Inc. announced that they have entered into an exclusive, worldwide option and collaboration agreement under which the companies will develop and commercialize a antisense drug for the treatment of myotonic dystrophy type 1 (DM1), which is also known as Steinert disease.
  • On June 29, 2012, Glaxosmithkline Plc announced it has extended its tender offer to acquire all of the outstanding shares of Human Genome Sciences for USD13.00 per share in cash to 5:00 p.m New York City time on July 20, 2012.
  • On June 29, 2012, Human Genome Sciences Inc (HGS) announced statement regarding the extension by GlaxoSmithKline plc of unsolicited tender offer to acquire all the outstanding common shares of HGS at a price of $13.00 per share in cash and GSK's statement that approximately 375,526 shares of HGS common stock have been tendered into their offer.
  • On June 27, 2012, Gilead Sciences, Inc. announced it has submitted a New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA) for marketing approval of elvitegravir, an integrase inhibitor for the treatment of HIV-1 infection in treatment-experienced adults.
  • On June 15, 2012, GlaxoSmithKline plc announced that it has received a renewed invitation from Human Genome Sciences Inc' to participate in its strategic alternatives review process which started in April.
  • On June 15, 2012, Human Genome Sciences Inc announced that, in connection with its ongoing strategic alternative review process, it had previously set a bid date of July 16, 2012 for the submission of definitive proposals to acquire all outstanding common shares of HGS. In this regard, HGS sent a letter to GlaxoSmithKline once again inviting GSK to participate in the ongoing process according to the same procedures previously established and to provide, by no later than July 16, 2012, GSK's final bid terms, including a response to a draft agreement which will be provided to all interested bidders.
  • On June 12, 2012, Amgen, Inc. announced the completion of the acquisition of more than 99% of the shares of Mustafa Nevzat Pharmaceuticals, a privately held Turkish company.
  • On June 12, 2012, Reuters reported that Britain's healthcare cost watchdog has had second thoughts about using Amgen, Inc's new bone drug Xgeva, or denosumab, and now says it does not believe it should be offered on the state health service to prostate cancer patients.
  • On May 29, 2012, Reuters reported that A Human Genome Sciences shareholder has filed a lawsuit against the board and requested a Maryland court to temporarily restrain the Company from using a poison pill in response to GlaxoSmithKline's hostile $2.6 billion takeover offer.
  • On May 23, 2012, Reuters reported that GlaxoSmithKline plc said it would not proceed with its $2.6 billion offer for Human Genome Sciences, Inc., unless the company dropped a "poison pill" shareholder rights plan imposed to block the deal.
  • On May 17, 2012, Human Genome Sciences announced that Board of Directors has adopted a Stockholder Rights Plan and declared a dividend of one share purchase right for each share of HGS's common stock held of record at the close of business on May 29, 2012.
  • On May 9, 2012, GlaxoSmithKline plc announced that it will not participate in Human Genome Sciences strategic alternatives review process and will instead commence a tender offer this week to acquire all of the outstanding shares of HGS for USD13.00 per share in cash.
  • On May 2, 2012, Gilead Sciences, Inc. announced that the first patient has been dosed in a Phase 3 clinical trial evaluating the efficacy and safety of GS-1101 (formerly CAL-101).
  • On May 1, 2012, Biogen Idec Inc updated its guidance for fiscal 2012, now the Company expects revenue growth to be in the mid-single digits versus fiscal 2011, Non-GAAP diluted EPS to be above $6.15 and GAAP diluted EPS to be above $5.54. The Company reported revenue of $5.049 billion in fiscal 2011.
  • On April 27, 2012, Amgen, Inc. announced that the U.S. Food and Drug Administration (FDA) has issued a Complete Response Letter for the supplemental Biologics License Application (sBLA) for XGEVA (denosumab) to treat men with castration-resistant prostate cancer (CRPC) at high risk of developing bone metastases.
  • On April 25, 2012, Amgen, Inc. and Mustafa Nevzat Pharmaceuticals (MN) announced an agreement under which Amgen will acquire 95.6% of shares in MN, a privately held Turkish pharmaceutical company, for an amount that values MN at USD700 million.
  • On April 25, 2012, Reuters reported that Human Genome Sciences which rebuffed an unsolicited $2.6 billion takeover bid by GlaxoSmithKline plc, said on April 24, 2012 it was reviewing strategic alternatives, including the sale of the Company.
  • On April 24, 2012, Amgen, Inc. announced that its Board of Directors declared a $0.36 per share dividend for the second quarter of 2012. The dividend will be paid on June 7, 2012, to all stockholders of record as of the close of business on May 16, 2012.
  • On April 24, 2012, Amgen, Inc. announced that it continues to expect 2012 total revenue to be in the range of $16.1-$16.5 billion, and adjusted earnings per share (EPS) to be in the range of $5.90-$6.15, excluding certain expenses related to acquisitions and cost-savings initiatives, non-cash interest expense associated with our convertible notes and certain other items.
  • On April 24, 2012, Biogen Idec Inc announced that detailed positive data from CONFIRM, the second Phase 3 clinical trial of oral BG-12 (dimethyl fumarate) in people with relapsing-remitting multiple sclerosis (RRMS), will be presented in three platform presentations at the 64th Annual Meeting of the American Academy of Neurology (AAN) in New Orleans.

Technical Overview


The stock has a market capitalization of $29.26B and is currently trading at $66.42 with a 52 week range of $51.70 - $80.42. The stock's year-to-date performance has been -1.75%. It is currently trading above 20 and 50 SMA, but below 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: Celgene