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
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.
Jun. 30, 2015, 8:24 AM
- CAR-T therapy-related stocks are poised to gap up at the open this morning as investors spread their enthusiasm over Juno's (NASDAQ:JUNO) deal with Celgene (NASDAQ:CELG).
- Previously: Juno up 53% after hours on 10-year Celgene deal (June 29)
- Related tickers: (NASDAQ:KITE) (NASDAQ:BLCM) (NASDAQ:CLLS) (NASDAQ:ZIOP)
Jun. 29, 2015, 4:54 PM
Jun. 29, 2015, 4:40 PM
- Juno Therapeutics (NASDAQ:JUNO) jumps 53% after hours on robust volume in response to its announcement of a 10-year collaboration with Celgene (NASDAQ:CELG) to develop and commercialize novel immunotherapies for the treatment of cancer and autoimmune diseases.
- Under the terms of the agreement, Celgene will make an upfront payment of ~$1B which includes an equity investment of ~$850M (9.1M shares at $93 per share). Celgene has the option of being Juno's commercialization partner for oncology and cell therapy autoimmune product candidates, including its CD19- and CD22-directed CAR-T product candidates, exclusive of B-Cell Maturation Antigen.
- Juno will be responsible for R&D in North America and will retain commercialization rights in these territories. Celgene will be responsible for development and commercialization in the rest of the world and will pay Juno royalties on net sales. Celgene has the right to select two programs, exclusive of CD19 and CD22, whereby the two firms will share equally in costs and profits in all territories except China. Under certain circumstances, Celgene may select a third program.
- Juno has the option of co-developing and co-commercializing certain Celgene-originated product candidates that target T cells. Costs and profits will be shared with Celgene on a 70/30 basis (70% - Celgene).
- The upfront payment consists of $150M in cash plus the purchase of 9,137,672 shares of Juno common stock at $93 per share. Under certain circumstances, Celgene could acquire up to a 30% stake in Juno.
- The companies will host a conference call at 5 pm ET today to discuss the deal.
Jun. 19, 2015, 9:58 AM| Jun. 19, 2015, 9:58 AM | 9 Comments
Jun. 17, 2015, 7:44 AM
Jun. 16, 2015, 2:12 PM
- Receptos (NASDAQ:RCPT) has jumped, +4.4%, to $182.35 on chatter that Wedbush has raised its price target on the stock to $348 and says a takeover is coming.
- The company has been subject to takeover speculation, including suitors like AstraZeneca (NYSE:AZN) talking about a $200/share bid, as well as Teva (NYSE:TEVA) and Gilead (NASDAQ:GILD) discussing $280/share bids.
Jun. 15, 2015, 5:34 PM
- Preliminary results from a Phase 2 clinical trial assessing Acceleron Pharma's (NASDAQ:XLRN) luspatercept in patients with lower risk myelodysplastic syndromes (MDS) show that three month's treatment with luspatercept increased hemoglobin levels and achieved transfusion independence in lower MDS patients. Longer term treatment produced sustained benefit for six months, possibly longer. The data were presented at the 20th Congress of the European Hematology Association in Vienna, Austria.
- Results from the 12-month extension study show that low transfusion burden patients (n=9) experienced a mean hemoglobin increase of ~2 g/dL (normal range: 13.5-17.5 g/dL for men and 12.0-15.5 g/dL for women) at one month which increased as high as 3.0 g/dL and was maintained for the six-month period for which data are available. In transfused patients, 43% achieved transfusion independence with several maintaining independence for more than six months.
- Also on a preliminary basis, data from a Phase 2 trial in beta thalassemia showed that 38% of patients treated with luspatercept experienced a mean increase in hemoglobin of at least 1.5 g/dL for at least nine weeks. In non-transfusion dependent patients who had iron overload (n=12), eight (67%) experienced reduced liver iron concentrations of 1-4.6 mg/g dry weight over a 16-week period. In transfusion dependent patients, 100% (n=10/10) who received luspatercept had more than a 40% reduction in transfusion burden while two of three with iron overload showed reduced liver iron concentration by 1.96 and 4.7 mg/g dry weight, respectively (reference value = ~1.8 mg/g dry weight).
- Luspatercept, being co-developed with Celgene (NASDAQ:CELG) is a protein therapeutic called a ligand trap. It promotes red blood cell formation by inhibiting members of the transforming growth factor beta superfamily, proteins that induce programmed cell death (apoptosis).
Jun. 10, 2015, 5:03 PM
- The FDA designates Agios Pharmaceuticals' (NASDAQ:AGIO) AG-120 an Orphan Drug for the treatment of acute myelogenous leukemia.
- AG-120, currently in Phase 1 development, is an inhibitor of the mutated form of the metabolic enzyme IDH1 (isocitrate dehydrogenase 1), present in a wide range of cancers. Normally, IDH enzymes help break down nutrients and generate energy for cells. When mutated, however, IDH creates a molecule that alters cells' genetic programming by which they remain in a primitive state and proliferate quickly. The company believes that inhibiting the mutated proteins may lead to clinical benefit for the subset of cancer patients whose tumors carry them.
- Agios retains the development and commercialization rights to AG-120 in the U.S. while Celgene (NASDAQ:CELG) owns the rights ex-U.S.
- Among the benefits of Orphan Drug status is a seven-year period of market exclusivity for the indication, if approved.
Jun. 9, 2015, 11:54 AM
- Proactiveinvestors' Philip Waller says if AstraZeneca (AZN -1.1%) doesn't get serious it will miss out on an attractive acquisition candidate that would boost its pipeline, something it needs to do if it hopes to achieve its previously announced goal of $45B in revenues by 2023.
- The target is San Diego, CA-based Receptos (RCPT +0.3%), a clinical stage biopharmaceutical firm with two promising drugs in development: RPC1063 for relapsing multiple sclerosis and inflammatory bowel disorders and RPC4046 for eosinophilic esophagitis.
- The company has already approached Receptos about a $200 per share bid but it was rejected as were higher bids of ~$280 per share from (TEVA -0.3%) and Gilead Sciences (GILD +1.2%). Receptos is reportedly holding out for $350 per share which would value it at ~$11B or a 124% premium to its current valuation.
- An AZN spokesperson says, "We wouldn't comment on market rumour or speculation."
Jun. 9, 2015, 9:05 AM
- Acceleron Pharma (NASDAQ:XLRN) will host a conference call and live webcast on June 15 at 10:00 am ET to review the highlights of two oral presentations on the luspatercept Phase 2 clinical trials in myelodysplastic syndromes and beta thalassemia given at the 20th Congress of the European Hematology Association.
- Fast Track-designated Luspatercept, being co-developed with Celgene (NASDAQ:CELG), is a protein therapeutic called a ligand trap. It promotes red blood cell formation by inhibiting members of the transforming growth factor beta (TGF-beta) superfamily, proteins that induce programmed cell death or apoptosis.
Jun. 3, 2015, 4:58 PM
- The collaboration between Celgene (NASDAQ:CELG) and bluebird bio (NASDAQ:BLUE) that began in March 2013 to develop and commercialize CAR-T therapies has a new focus. The companies will now direct their efforts on developing product candidates targeting B-cell maturation antigen (BCMA) for the next three years. BCMA is a cell surface protein that is expressed in normal plasma cells and in most myeloma cells, but is absent in other normal tissues.
- The companies will work together on the initial anti-BCMA candidate, known as bb2121, as well as next-generation anti-BCMA product candidates. A Phase 1 study of bb2121 will commence in early 2016.
- The rights to all other CAR-T programs developed by bluebird under the collaboration will remain with bluebird.
- Under the terms of the amended collaboration, bluebird will receive an upfront payment of $25M to fund the development of the lead anti-BCMA candidate through a Phase 1 study and the development of next-generation anti-BCMA candidates through Phase 1 trials. Celgene will have the option to develop and commercialize each product candidate worldwide and bluebird has the option to share equally in the development and commercialization of each candidate in the U.S. Celgene will pay bluebird development and regulatory milestone payments as well as royalties on net sales.
- BLUE is down 2% after hours on average volume. CELG is unchanged.
May 21, 2015, 9:30 AM
- Alongside Goldman's list of 50 stocks appearing most as top holdings at hedge funds is its list of the 50 top shorts.
- New additions this quarter: Baxter Intl (NYSE:BAX), UPS, Marriott (NASDAQ:MAR), NextEra (NYSE:NEE), Ford (NYSE:F), National Oilwell Varco (NYSE:NOV), McDonald's (NYSE:MCD), M&T Bank (NYSE:MTB), CenturyLink (NYSE:CTL), Amgen (NASDAQ:AMGN), Pioneer Natural (NYSE:PXD), Duke Energy (NYSE:DUK), Seagate (NASDAQ:STX), AbbVie (NYSE:ABBV), Cisco (NASDAQ:CSCO).
- The full list (in order of $ value of short interest): AT&T (NYSE:T), Disney (NYSE:DIS), IBM, Verizon (NYSE:VZ), Intel (NASDAQ:INTC), Kinder Morgan (NYSE:KMI), Exxon (NYSE:XOM), Pfizer (NYSE:PFE), J&J (NYSE:JNJ), Deere (NYSE:DE), Caterpillar (NYSE:CAT), Exelon (NYSE:EXC), GE, Boeing (NYSE:BA), Halliburton (NYSE:HAL), Fox (NASDAQ:FOXA), Comcast (NASDAQ:CMCSA), UTX, Regeneron (NASDAQ:REGN), Merck (NYSE:MRK), salesforce.com (NYSE:CRM), AbbVie (ABBV), Conoco (NYSE:COP), Wal-Mart (NYSE:WMT), Eli Lilly (NYSE:LLY), Celgene (NASDAQ:CELG), Schlumberger (NYSE:SLB), AutoZone (NYSE:AZO), Wells Fargo (NYSE:WFC), Emerson (NYSE:EMR), McDonald's (MCD), Reynolds (NYSE:RAI), Target (NYSE:TGT), Accenture (NYSE:ACN), Coca-Cola (NYSE:KO).
May 18, 2015, 9:53 AM
- The FDA designates luspatercept for Fast Track review for the treatment of patients with transfusion-dependent and non-transfusion-dependent beta thalassemia.
- Beta thalassemia is genetic disorder caused by mutations in the HBB gene, which provides instructions for making beta-globulin, a protein subunit of hemoglobin. Sufferers are anemic and have increased risk of developing abnormal blood clots.
- Luspatercept is a protein therapeutic called a ligand trap. It promotes red blood cell formation by inhibiting members of the transforming growth factor beta (TGF-beta) superfamily, proteins that induce programmed cell death or apoptosis. It is being co-developed by Acceleron Pharma (XLRN +1.1%) and Celgene (CELG). A Phase 2 trial in beta-thalassemia is in process.
- Fast Track status provides for more frequent interactions with the FDA review team and a rolling review of the New Drug Application (NDA).
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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