From other sites
at CNBC.com (Mon, 6:40PM)
at Zacks.com (Mon, 6:25PM)
at CNBC.com (Mon, 1:26PM)
at CNBC.com (Fri, 6:00PM)
at Zacks.com (Thu, 4:33PM)
at Zacks.com (Wed, 5:10PM)
at CNBC.com (Nov 18, 2014)
at Zacks.com (Nov 14, 2014)
at CNBC.com (Nov 14, 2014)
at Zacks.com (Nov 13, 2014)
- CELG is suitable for the Enterprising Investor following the ModernGraham approach.
- According to the ModernGraham valuation model, the company is overvalued at the present time.
- The market is implying a 19.69% earnings growth over the next 7-10 years, which is well above the company's actual growth in recent years.
Update: Celgene Reports Good Earnings, Remains Attractive
- Celgene reported strong growth: Revenues are up 18.4%, earnings per share are up 41.9%.
- Celgene raised its EPS guidance for 2014, now fitting the estimate I used in my original article.
- I see my original thesis as confirmed: Celgene, which offers great growth, is trading below its intrinsic value.
Celgene Is A Great Stock, But I Can't Manage To Hold Onto It
- The company sports great financial efficiency ratios but I keep wanting to take profits as the market seems embroiled right now.
- I took profits from Visa and placed them into Celgene because I had a great profit in Visa.
- The stock appears fairly valued on 2015 earnings estimates and earnings growth potential and that's why I want to lock in profits on this gain too.
- The U.S. Food and Drug Administration authority approved the expanded use of Celgene's drug Otzela as an oral treatment for patients with moderate-to-severe plaque psoriasis.
- According to analysts' estimates compiled by Bloomberg, Otzela expects to generate $1.03 billion in sales by 2017.
- Celgene is consistently expanding its existing blockbusters labels to fuel the future growth of the company.
- Based on future growth expectations, Celgene seems to be undervalued.
- Today we will take a look at Celgene, one of the "Big Four" of biotech, and Jim Cramer's current favorite large biotech concern.
- The company has one of the deepest pipelines in biotech and has years of stellar growth ahead of it.
- Some of these drugs are highlighted in this article. Why I believe the stock has better than 80% upside over the next three years is highlighted below as well.
Restoring My Growth Portfolio With Restoration Hardware By Closing Out Celgene
- I felt Restoration Hardware was beaten down too much on the back of their recent earnings report and felt it was a good opportunity to buy the stock.
- To make this trade happen I had to sell my position in Celgene which is a great biotech company with great earnings growth expectations.
- After performing the analysis, I want to get back into Celgene at some point in the near future.
- Celgene measures up to the hype as a powerful growth stock story.
- Analysis, coupled with the underlying business narrative, indicates investors may enjoy the probability of asymmetric upside risk versus reward.
- Don't let the current P/E scare you; the shares are not expensive.
- Celgene will continue to benefit from the increasing demand for its key growth driver Revlimid.
- Celgene has good valuation metrics and strong earnings growth prospects; its PEG ratio is very low at 0.94.
- Celgene raised its 2014 outlook.
- Celgene has top-quality pipeline which should sustain long-term growth.
- All oral Otezla ready to take on psoriasis by end of year.
- Oral Otezla won’t entirely displace injected biologics, but safety and convenience should easily push it over the $1 billion mark.
- Early clinical data suggests oral antisense drug GED-0301 could be a Crohn’s disease winner.
- Progression free survival figures could result in Kyprolis/Revlimid/dexamethasone becoming standard of care for advanced multiple myeloma.
- Lack of adverse events alleviates cardiovascular event fears.
- Celgene also stands to gain from increased duration of Revlimid use.
Celgene: Constantly Adding Signature Drugs To Its Healthy Portfolio
- Celgene’s bag of signature drugs continued to drive its top and bottom line growth in the second quarter.
- Growth was primarily contributed by the strong performance of Celgene’s flagship drugs, Revlimid, Pomalyst, Abraxane etc.
- Launched in March, Otezla has paralleled with Humira as the top notch new branded treatment starts for PSA.
- Future revenue growth: introducing Otezla in other markets and researching on four other indications that can be treated by Otezla in order to earn higher revenue from this drug.
- The company has bright future prospects but it only offers return to its investors in the form of capital appreciation and not regular dividend income.
- We pitch two companies from the biotechnology sector, Gilead and Celgene, against one another in the latest installment of our Head-To-Head series.
- The article focuses on the relative strengths and weaknesses of Gilead and Celgene, based on business performance and sustainability/dividends/forecasts.
- It ends with discussion of the current valuations of the two companies, and details whether Gilead represents good relative value at current price levels.
- Celgene has been one of the great growth stocks of our era.
- The company has a bulging pipeline on which it is overtly bullish, and management has earned respect.
- Based on prospective earnings by 2017, the stock is undervalued.
- In addition, CELG could be an attractive takeover target.
Getting Bearish On Celgene The Stock, Not The Company
- Financial efficiency ratios are deteriorating.
- The stock is fairly valued based on 2015 earnings estimates and earnings growth potential.
- The company missed top line estimates, but beat on the bottom line when they reported first-quarter earnings back on 24 Apr '14.
Celgene Asserts More Revlimid Patents, Seeks New Ones To 2031
- Celgene's current suit against Actavis asserting 18 patent awaits Markman decision.
- On the day of the Markman hearing, Celgene filed a new suit against Actavis, asserting 4 more patents.
- Celgene is also already seeking patent protection that could extend the Revlimid franchise to 2031.
- A Markman hearing in Celgene's Revlimid patents case took place Thursday.
- Markman process defines what Celgene's Revlimid patents cover.
- This article reviews the issues addressed at the hearing and provides my expected outcome.
Celgene: Do The Revlimid Polymorph And Use Patents Matter?
- The compound, or composition of matter, patent for Revlimid (US 5,635,517) expires in October 2019.
- Celgene has a polymorph patent for Revlimid (US #7,465,800) that expires in 2027.
- Given the Lipitor (atorvastatin) precedent, the Revlimid polymorph patent, even if upheld, will likely not prevent introduction of generic Revlimid in 2020.
- Two method of use patents (7,189,740 and 7,968,569), which expire in 2023, may become the battle ground for extending exclusivity for Revlimid beyond 2019.
- Using Celgene's guidance and current P/E, should approach $160 per share by end of 2014.
- Using Celgene's guidance and current P/E, should approach $345 per share by end of 2017.
- Expect strong earnings growth from sales of Revlimid and new products Pomalyst and Ortezla.
Addressing Revlimid Patents Questions From Celgene's Q1 2014 Call
- On Celgene's Q1 2014 call Thursday, analysts asked questions regarding Revlimid patent issues.
- The questions related to the upcoming Markman hearing and a patent application filed by the generic.
- In the linked video I discuss and expand upon the company's answers to those questions.
Fri, Nov. 14, 12:00 PM| 41 Comments
Fri, Sep. 26, 1:12 PM
- Moderately-traded biotech Angios Pharmaceuticals (AGIO +19.6%) jumps on a 10x surge in volume. Shares have quadrupled since the low of $15.77 on November 18, 2013.
- In November, the company will present clinical data from a Phase 1 trial of AG-120, an orally available inhibitor of the mutated IDH1 protein, being developed to treat hematologic malignancies and solid tumors.
- Collaboration partner Celgene (CELG +0.3%) has a 15% stake in the company.
Fri, Apr. 25, 3:27 PM
- "It's Time ... We Think," is the title of a report from the team at Piper Jaffray, upgrading Celgene (CELG +1.1%) to Overweight.
- Noting significant cooling in biotech and even a massive beat from Gilead which barely moved the stock, Piper acknowledges it's a tough environment for high multiple names. But trading at 20x P/E with 20% sustainable EPS growth means Celgene is either going to soon be considered a value play or see multiple stabilization.
- "We believe the valuation now reflects a conservative 2024 Revlimid patent expiry and excludes meaningful contribution from the advancing pipeline ... [Celgene] is attuned to delivering shareholder value and we believe will fight aggressively to lift the Revlimid polymorph patent overhang and deliver sustainable EPS growth."
- Celgene's gain today comes as the biotech sector slips about 4%.
Thu, Jan. 30, 2:44 PM
- Amid a strong showing for top-tier biotech stocks, Celgene (CELG -2.2%) is in the red after missing Q4 earnings, offering underwhelming guidance and from critical editorial correspondences published in the New England Journal of Medicine.
- Two correspondences raised concerns about Abraxane benefits, toxic effects, incremental cost and the effect of pancreatic tumor location on the drug’s efficacy; however, Citigroup would buy CELG on today's weakness, seeing the drug as a strong seller and the NEJM story as a non-event.
- Alexion Pharma (ALXN +22%), on the other hand, reported a strong Q4 with solid guidance; Brean Capital praises ALXN as "highly committed to developing a portfolio of drugs for diseases that are both rare and severe."
- Also: VRTX +5.5%, BIIB +4.8%.
Tue, Jan. 28, 9:12 AM
- Deutsche's Robyn Karnauskas makes a big call on big-cap biotechs, boosting price targets for Biogen (BIIB) to $415 from $340, Celgene (CELG) to $190 from $170, and Gilead (GILD) to $132 from $95. The $132 PT for Gilead is a new Street high "by a nautical mile," says Notable Calls, and Karnauskas sees upside all the way to $165.
- "We view large-cap biotech as fundamentally stable yet providing attractive growth," she writes, citing more diversified businesses, pipelines, new product launches, strong balance sheets, and strong free cash flow. "Therefore, we are changing our valuation methodology to 2015 PE multiples from DCF for Gilead, Celgene, and Biogen. Our '15 EPS estimates are higher than consensus and we think near-term franchise success could drive re-rating."
- GILD +2.7%, CELG +1.3% premarket
- Related ETFs: IBB, XBI, BIB, BBH, FBT, PBE, BIS
Wed, Jan. 8, 10:46 AM
- Nomura's Ian Somaiya (formerly at Piper) is out with a number of healthcare initiations.
- Gilead (GILD +1.7%) is the firm's top biotech pick for 2014 as the company is "set to dominate the HCV market." GILD started at Buy. Price target is $118.
- Neurocrine Biosciences (NBIX -3.2%) started at Buy. Somaiya sees peak sales of $700M for NBI-98854. Price target is $23.
- Celgene (CELG +1.2%) started at Buy. "Revlimid for multiple myeloma, is less than a third of the way to realizing its peak sales potential," Somaiya says. Price target is $236.
- Biogen (BIIB +4.1%) initiated at Buy. Tecfidera, is "a blockbuster ... treatment for MS, with estimated peak sales of $9B," Somaiya notes. Price target is $368.
- Alexion (ALXN +1.5%) initiated at Buy. Price target $150.
- Pharmacyclics (PCYC +1.9%) will "transform the treatment paradigm and disease course of CLL and mantle cell lymphoma MCL." Shares started at Buy. Price target is $137.
- Other initiations: Incyte (INCY +5.9%) started at Buy. Synageva BioPharma (GEVA +3.7%) started at Buy. BioMarin (BMRN +1.2%), Amgen (AMGN), and Infinity Pharmaceuticals (INFI +2.8%) started at Neutral.
Tue, Jan. 7, 8:02 AM
- Epizyme (EPZM) rallies 32% (low volume) in premarket action.
- Monday evening, the company reported that it has achieved the "POC milestone in the EPZ-5676 DOT1L inhibitor clinical program," an event which triggers a $25M payment from partner Celgene (CELG).
- Objective responses in patients with translocations of the MLL-r observed in the fourth dose cohort of an ongoing Phase 1 study were the triggering event.
- Additionally, the company says "a development candidate milestone has been achieved for one of the three HMT targets included" in the GlaxoSmithKline (GSK) partnership, triggering another $4M milestone payment.
- 2013 end-of-year cash now seen at $145M versus $115M previous. (PR)
Dec. 10, 2013, 8:30 AM
- Credit Suisse upgrades Celgene (CELG) to Outperform from Neutral in a move analyst Ravi Mehrotra says "is as much about relative growth as revenue and EPS upgrades."
- Mehrotra sees 2017 total sales and EPS of $13B and $16 (up from $11B and $13.57).
- The new estimates are largely attributable to an increase in the projection for Revlimid sales, which are now seen at $7.6B, up from $6.8B. The more upbeat assessment is due to "lengthening of treatment duration and increasing penetration in the first-line setting."
- CAGR projections from 2013-2017: 19% top-line and 28% bottom-line.
- Price target hiked to $210 from $165.
- CELG +1.3% premarket
Dec. 6, 2013, 3:16 PM
- Citi is out with some bullish commentary on Celgene (CELG +0.9%).
- Analyst Yaron Werber went out and conducted a "detailed analysis," before ultimately determining that "Revlimid/dex is set to dominate the myeloma market over the long-term."
- Not only does Werber think the "tailwind" for Revlimid/ Pomalyst is "much greater than appreciated," the analyst also says the company's pipeline should "further sustain its dominance" in myeloma.
- Price target hiked to $204 from $182.
- Related from last month: BofA note spooks Amgen
Dec. 4, 2013, 8:27 AM
- After nearly doubling on Tuesday, shares of OncoMed Pharmaceuticals (OMED) add another 7% in premarket trading.
- Today's catalyst looks to be Jefferies, where analyst Thomas Wei is out with a $46 target (from $27).
- Wei likes the Celgene (CELG) deal and says it "validates demcizumab and [the] cancer stem cell platform [and] relieves OMED of any near-term financing risk."
- For more on the CELG deal, see here
Dec. 3, 2013, 8:02 AM
- OncoMed Pharmaceuticals (OMED) announces a development and commercialization agreement with Celgene (CELG).
- The deal includes demcizumab and "up to six anti-cancer stem cell product candidates."
- OMED gets $177.25M upfront ($22.25M equity investment).
- 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)
- OMED +60% premarket.
- OncoMed Pharmaceuticals (OMED) announces a development and commercialization agreement with Celgene (CELG).
Nov. 21, 2013, 3:20 PM
- 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.
Oct. 16, 2013, 10:50 AM
Oct. 10, 2013, 11:57 AM
- 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%).
- ETFs: IBB, XBI, FBT, PBE, BBH, BIB, BIS.
Sep. 26, 2013, 10:43 AM
- 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).
- ETFs - IBB, XBI, FBT, PBE, BBH, BIB, BIS
Sep. 19, 2013, 2:36 PM
- 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.
- S-1, IPO preview
CELG vs. ETF Alternatives
Other News & PR