Receptos Continues To Reward
Stephen Simpson, CFA
Stephen Simpson, CFA
Multiple Observations On Celgene's Latest Licensing Deals, And Its Valuation
DoctoRx • 75 Comments
DoctoRx • 75 Comments
Celgene: A Pre-Earnings Discussion Based On Recent News
DoctoRx • 39 Comments
DoctoRx • 39 Comments
Aug. 20, 2015, 2:35 AM
- Yesterday was the 11th anniversary since Google's (GOOG, GOOGL) initial public offering, and there's no doubt the company has had a remarkable run (Class A shares +1,277%).
- Although the online advertising giant has given a massive return to investors, there are still 13 stocks that outperformed Google since 8/19/2004:
- Alexion Pharmaceuticals (NASDAQ:ALXN); Amazon (NASDAQ:AMZN); Apple (NASDAQ:AAPL); Celgene (NASDAQ:CELG); Gilead Sciences (NASDAQ:GILD); Intuitive Surgical (NASDAQ:ISRG); Keurig Green Mountain (NASDAQ:GMCR); Monster Beverage (NASDAQ:MNST); Netflix (NASDAQ:NFLX); Priceline (NASDAQ:PCLN); Regeneron Pharmaceuticals (NASDAQ:REGN); salesforce.com (NYSE:CRM); Vertex Pharmaceuticals (NASDAQ:VRTX).
Aug. 11, 2015, 8:47 AM
- The waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR) pertaining to Celgene's (NASDAQ:CELG) bid for Receptos (NASDAQ:RCPT) expired yesterday. This satisfies one of the conditions for the closing of the transaction, expected this quarter.
- Celgene's offer will expire at midnight ET on Monday, August 24, unless extended.
Aug. 5, 2015, 8:45 AM
- The Federal Trade Commission grants early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act) in connection with Celgene's (NASDAQ:CELG) 10-year collaboration agreement with Juno Therapeutics (NASDAQ:JUNO), making it effective on July 31.
- Celgene will make an initial investment of $1B, consisting of an upfront payment of $150M and the purchase of 9,137,672 common shares of Juno at $93 per share.
- JUNO is up 2% premarket on light volume. CELG is up a fraction.
- Previously: Juno up 53% after hours on 10-year Celgene deal (June 29)
Aug. 4, 2015, 4:52 PM
- Celgene (NASDAQ:CELG) prices five series of senior unsecured notes representing an aggregate of $8B. $1.0B will mature in 2018 and bear annual interest of 2.125%, $1.5B will mature in 2020 and bear 2.875%, $1.0B will mature in 2022 and bear 3.550%, $2.5B will mature in 2025 and bear 3.875% and $2.0B will mature in 2045 and bear 5.000%. Each series' actual price produced yields slightly higher that the stated rates.
- Proceeds will help fund the Receptos acquisition.
Aug. 4, 2015, 8:12 AM
- As permitted under its 2009 Collaboration and Option Agreement with GlobeImmune (NASDAQ:GBIM), Celgene (NASDAQ:CELG) exercises its option to exclusively license GI-6207, a product candidate developed with GlobeImmune's proprietary Tarmogen platform. GI-6207, the second Tarmogen-derived product candidate licensed to Celgene, targets cancers that express carcinoembryonic antigen (CEA). It is currently in Phase 2 development for medullary thyroid cancer (MTC) at the National Cancer Institute. Top-line results are expected in H2 2016.
- CEA is over-expressed in various human epithelial cancers, including MTC. Preclinical studies showed that GI-6207 could induce an immune response to CEA as well as therapeutic anti-tumor responses. In an earlier Phase 1 trial of monotherapy GI-6207, 20% (n=5/25) of subjects receiving the drug experienced stable or decreased levels of CEA and stable disease.
- Under the terms of the agreement, GlobeImmune will receive an option exercise payment of $1.9M, regulatory- and sales-based milestones and royalties on commercial sales.
- There are ~500K new cancer cases each year in the U.S. characterized by the over-expression of CEA.
- Update: GBIM is up 46% premarket on light volume. CELG is up a fraction.
Aug. 3, 2015, 8:42 AM
- Celgene Corporation (CELG) announces plans to offer senior unsecured notes under a shelf registration statement with the Securities and Exchange Commission. The offering is subject to market and other conditions.The interest rate, the maturity dates and other key terms of the offering will be determined at the time of pricing.
- The company anticipates that the net proceeds will finance a portion of the acquisition of Receptos (RCPT) and the remainder for general corporate purposes. This may include further development of Celgene's clinical and pre-clinical programs, capital expenditures, general corporate development activities, meeting working capital needs, share repurchases and repayment of some or all of Celgene's outstanding commercial paper.
- J.P. Morgan, Citigroup, Deutsche Bank, and Merrill Lynch, Pierce, Fenner & Smith Incorporated are acting as joint book-running managers and representatives of the several underwriters. Previously: Celgene to buy Receptos for $7.2B (July 14 2015)
Jul. 23, 2015, 8:24 AM
- Celgene (NASDAQ:CELG) Q2 results ($M): Total Revenues: 2,277.8 (+21.6%); Net Product Sales: 2,254.1 (+22.2%); U.S. Product Sales: 1,350.3 (+25.8%); International Product Sales: 903.8 (+17.2%).
- Net Income: 356.2 (-40.4%); EPS: 0.43 (-40.3%); CF Ops: 284.0 (-45.0%).
- Key Product Sales: Revlimid: 1,444.0 (+19.0%); Abraxane: 244.2 (+13.4%); Pomalyst/Imnovid: 234.5 (+45.7%); Vidaza: 152.1 (+0.1%).
- 2015 Guidance: Net Product Sales: $9.0B - 9.5B (unch); Revlimid Sales: $5.6B - 5.7B (unch); Abraxane Sales: $1.0B - 1.25B (unch); EPS: $2.17 - 2.46 from $2.97 - 3.19; Non-GAAP EPS: $4.75 - 4. 85 from $4.60 - 4.75.
Jul. 23, 2015, 7:32 AM
- Celgene (NASDAQ:CELG): Q2 EPS of $1.23 beats by $0.04.
- Revenue of $2.28B (+21.9% Y/Y) beats by $20M.
- Shares +0.9% PM.
Jul. 22, 2015, 5:30 PM
- ABB, ABC, ADS, AEP, ALK, AMAG, AOS, ASPS, BCC, BHE, BKU, BMS, BMY, BSX, CAB, CAM, CAT, CELG, CFX, CLFD, CMCSA, CMS, COR, CS, CSL, CY, DAN, DFRG, DGX, DHR, DLX, DNKN, DOW, DPS, DST, EQM, EQT, FAF, FCX, FIS, FNB, GM, GMT, GNTX, GPI, GPK, HBAN, HERO, HUB.B, IMAX, IQNT, IVC, JNS, KKR, KMB, LAZ, LLY, LUV, MAC, MCD, MHO, MINI, MJN, MMM, MNRO, MRGE, NDAQ, NEO, NUE, NWE, ORI, PDS, PENN, PHM, PRLB, PTEN, QSII, R, RCI, RS, RTN, SCHL, SFE, SHPG, SNA, SQNS, STC, STM, SYNT, TCB, TROW, UA, UAL, UNP, USG, UTEK, VAC, VRX, WAB, WCC, WIT, WM, WRLD, XRS
Jul. 22, 2015, 12:43 PM
- Celgene (CELG +1.5%) reports Q2 results tomorrow before the open. Consensus view is EPS of $1.19 (+65%) on revenues of $2.3B (+23%).
Jul. 16, 2015, 12:31 PM
- UniQure (QURE -0.1%) initiated with Outperform rating by Cowen & Co.
- Axovant Sciences (AXON +2.7%) initiated with Market Outperform rating and price target of $36 (103% upside) by JMP Securities.
- Walgreens Boots Alliance (WBA +1.6%) upgraded to Outperform from Neutral by Credit Suisse. Price target raised to $110 (15% upside) from $90.
- Celgene (CELG +3.1%) maintained with Buy rating by Nomura. Price target raised to $165 (22% upside) from $146. Receptos (RCPT -0.3%) downgraded to Neutral from Buy with a $232 (predictable) price target.
Jul. 15, 2015, 12:45 PM
Jul. 15, 2015, 10:36 AM
- Celgene's (CELG +9.5%) $7.2B deal for Receptos (RCPT +10.3%) is “a great acquisition at a great price," Nomura analysts say, as ozanimod could enable CELG's inflammation and immunology franchise to double peak sales to $10B and reduce reliance on Revlimid to drive future growth, and the acquisition price of less than 2x peak sales is a steep discount relative to recent comparisons.
- Wedbush analyst Liana Moussatos sees plenty of potential upside to justify a rival bidder stepping in for RCPT, noting that she had estimated the company could be valued at $348/share, or ~$10.9B, in a buyout, substantially more than CELG's $232 offer.
- The deal is boosting some biotech names (IBB +1.9%), including PTC Therapeutics (PTCT +11.7%), Celsion (CLSN +7.1%) and Arena Pharmaceuticals (ARNA +6.7%).
Jul. 15, 2015, 9:15 AM
Jul. 14, 2015, 5:39 PM
Jul. 14, 2015, 5:15 PM
- Celgene (NASDAQ:CELG) agrees to acquire Receptos (NASDAQ:RCPT) for ~$7.2B in cash, or $232/share, representing a 12% premium to today's closing price.
- CELG says the deal will significantly enhance its inflammation and immunology portfolio, diversify its revenue beginning in 2019 and beyond, and build upon its growing expertise in inflammatory bowel disease.
- The acquisition adds Ozanimod, a drug under trial to treat ulcerative colitis and relapsing multiple sclerosis; annual sales of the drug are expected to peak at $4B-$6B.
- CELG also says it expects Q2 adjusted EPS of $1.23 vs. $1.13 analyst consensus estimate, and net product sales +22% Y/Y to $2.25B; raises FY 2015 EPS guidance to $4.75-$4.85 from a prior $4.60-$4.75.
- CELG +4.4% AH, RCPT halted until 5:30.
Celgene Corp. is an integrated global biopharmaceutical company engaged primarily in the discovery, development and commercialization of therapies for the treatment of cancer and inflammatory diseases through gene and protein regulation. Its targeting areas include intracellular signaling... More
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