Morgan Stanley picks three biotechs worth buying: Biogen (BIIB), Celgene (CELG) and Gilead Sciences (GILD). The latter "offers 15-20% upside and the most attractive combination of fundamental positive drivers... 2012 events have the potential to meaningfully improve long-term cash flow visibility, driving multiple expansion and positive EPS revisions.”
Shares of microcap drug developer EntreMed (ENMD +23%) soar on the back of partner Celgene's (CELG -1.4%) acquisition of fellow cancer-therapy developer Avila Therapeutics. The company derives most of its revenue from royalty payments on sales of Celgene's drug Thalomid.
Celgene (CELG) to acquire privately-held biotech firm Avila Therapeutics for $350M in cash, plus up to $190M for milestones related to AVL-292, as well as up to $380M in potential milestone payments contingent upon the development and approval of candidates generated from the Avilomics platform. (PR)
Celgene (CELG +1.1%) states it expects 2011 revenue of $4.8B and EPS of $3.79, slightly below a consensus of $4.83B and $3.80. The drugmaker is also establishing 2012 revenue guidance $5.4B-$5.6B and EPS guidance of $4.70-$4.80, largely above a consensus of $5.4B and $4.52.
Lagging biotechs Amgen (AMGN -0.2%) and Celgene (CELG -2%) may dive into deal-making this year in seeking to return to the industry’s high-growth roots, Bloomberg speculates. Investors in the space have rewarded strategic acquisitions and companies that continue to develop innovative therapies, rather than dividend-paying low-growth stocks.
Celgene (CELG -1.5%) is trading lower this morning after a European panel recommended changes to the product label for Revlimid in the EU. The Committee for Medicinal Products for Human Use is urging the company to provide more complete information on the risk of secondary cancers from using the drug in the wake of several new studies.
Celgene (CELG +4.4%) gains after it agrees ahead of schedule to extend its exclusivity agreement with Agios from three to four years. Under the terms of the new agreement, Celgene has an exclusive option to drug candidates generated by Agios' cancer metabolism research for a $20 million payment, and it will retain the option to extend the period further in the future.
Celgene (CELG +6.9%) shares rise on speculation that a positive resolution of a European regulatory review of its Revlimid cancer drug could be imminent. Analysts say the EU advisory panel meeting this week may support the drug's overall risk/benefit ratio after clinical data suggested increased risk of secondary malignancies in long-term users.
The biotech industry looks ripe for more gains after posting a second consecutive year of profits and seeing M&A activity heat up, says Karvy Global Services. Crunching the numbers reveals 8 stocks with implied upside potential based on quarterly results and analyst recommendations. Picks: HITK, CELG, DNDN, WX, TEVA, ILMN, CRL, BIIB.