OMED also keeps "global co-development and U.S. co-commercialization rights for five of the six anti-CSC product candidates with 50/50 U.S. profit sharing, and royalties to be received in other territories."
CELG has an exclusive option on demcizumab subsequent to which OMED will "co-develop [the drug and] share global development costs on a 1/3 OMED and 2/3 CELG basis." (PR)
After opening higher, shares of Amgen (AMGN -2.9%) moved into negative territory this morning and have since traded notably lower on above average volume.
The weakness looks to be attributable to BofA/ Merrill Lynch. Here's what the firm had to say regarding a meeting with Celgene's (CELG +1.8%) management: "The most notable derivative commentary was around AMGN's Kyprolis. CELG is hearing increasing concerns from big myeloma centers on CV events."
They continue: CELG "has access to the event rate in ASPIRE and believes the full story has yet to fully play out." While BofA says CELG "was not tossing away Kyprolis" they did seem to suggest that "it could be reserved with Revlimid/Dexamethasone for high risk myeloma." ASPIRE combines Kyrpolis, Revlimid, and Dexamethasone.
Now, Cowen is apparently out defending AMGN, saying any CELG commentary might have been taken out of context.
Also down sharply are shares of Ligand Pharmaceuticals (LGND -5.7%) which receives tiered royalties tied to the use of Captisol technology in the drug.
Celgene's (CELG) twice-a-day pill Apremilast helped bring about notable and lasting reductions in the signs and symptoms of psoriatic arthritis in a late-stage trial of 527 patients who hadn't previously been treated for the disease. Subjects received the drug for a year.
"To be able to have a patient that can take a pill twice a day, I think this is going to be a game changer, not only for me as a physician, but for my patients," said Alvin Wells, the lead investigator in the trial.
The FDA is expected to decide whether or not to approve Apremilast in March. If authorized, the drug would compete with injected biotech medicines that are highly effective but whose side effects are potentially more serious.
Sales of Apremilast are forecast at $475M-1.5B over the next few years, depending on whom you ask.
Jefferies hikes its price target on Celgene (CELG -1.6%) to $185 from $161, calling the company's Q3 results "robust."
Analyst Thomas Wei says new data from MM-020 (Revlimid) "will support [the] long-term thesis of above-consensus market share and duration, a slightly delayed Q1 2014 regulatory submission for NDMM , and the launch of apremilast for psoriatic arthritis in H1 2014."
Jefferies raises Q4 and FY3 EPS estimates to $1.54 (from $1.44) and $5.99 (from $5.88), respectively.
"For Q3, 91 companies in the S&P 500 cut their earnings guidance while just 19 raised them—both records since FactSet began keeping count in 2006," Jack Hough notes.
Investors needn't fear though, as Barron's is out with a list of six companies who have not only raised their EPS estimates, but whose shares also boast "either recently raised price targets or recommendation upgrades."
The list: Allstate (ALL), Occidental Petroleum (OXY), J.M. Smucker (SJM), Snap-on (SNA), Celgene (CELG), and Capital One (COF).
Biotechs took a beating in the first three days of this week but they're rallying today, so investors need to decide whether they should be using the dip to buy or the bounce to sell.
Citi sees a mixed view for the sector: Given the scarcity of growth stocks in the overall market, the firm expects large-cap biotechs to bounce back but is far less sanguine about small- and mid-caps where valuations are broadly stretched and the Street is overly optimistic of the chances for pipeline success.
The firm's favorites include Gilead (GILD +4.7%) and Celgene (CELG +3.5%), and sees compelling risk/reward in Medivation (MDVN +3.9%) and Tesaro (TSRO +5.7%).
Stocks with major uncertain events looming, such as MDVN, or with significant revenue upside already built into valuation, such as PCYC, were among the most severely affected, Porges says, but "nothing changed in the environment to suggest that those events were any more or less likely to have positive outcomes yesterday, or to suggest that revenue potential was any more or less likely to be achieved than was previously expected."
Still, investors shouldn’t buy the sector willy-nilly; Porges recommends Celgene (CELG) and Gilead (GILD) among large caps, and notes that less-pricey stocks such as Amgen (AMGN) should hold up better, as should midcaps with earnings and products, such as Alexion (ALXN).
Cramer says biotech is a safe haven amid the uncertainty emanating from Washington, as pipelines are strong and the sector is not sensitive to the trajectory of the overall economy — this is a "double advantage", he says.
Celldex (CLDX +5.3%) — which is part of this week's billion dollar biotech price target bump club courtesy of Leerink and Cantor — gets a glowing recommendation as Cramer calls the company "just incredible."
Other companies getting a name drop: Celgene (CELG +2.4%), Immunogen (IMGN +2%), and Onyx (ONXX).
After pricing its IPO at $15 and upsizing its offering 5.58M shares from a prior 4.65M, Acceleron Pharma (XLRN) opened at $18.90 and is currently at $19.13, up 27.5%. That gives the drug developer a market cap of $509M.
Existing investor/partner Celgene (CELG -0.4%) bought 667K shares in a private placement coinciding with the IPO. The purchase raises Celgene's stake in Acceleron to 12.3%. Acceleron and Celgene teamed up in 2011 to develop the latter's ACE-536 drug, which aims to combat anemia.
Acceleron had $41.4M in revenue in 1H (up over 5x Y/Y), and net income of $14.7M. In addition to ACE-536, the company is working on cancer and kidney disease drugs.