Celgene Could Achieve 2020 Targets, BTIG Upgrades To Buy

Although Celgene Corporation’s (NASDAQ: CELG) financial targets for 2020 are higher than consensus expectations, the company may be able to achieve them through new commercial products, label expansion and M&A, BTIG’s Dane Leone said in a report. He upgraded the rating on the company from Neutral to Buy, while establishing the price target at $138.

Celgene has announced its 2020 revenue and EPS targets for 2020 at +$21 billion and +$13, representing upside to the consensus estimates of ~$20 billion and ~$12.47, respectively. Analyst Dane Leone considers the targets as achievable via new commercial products, label expansion and M&A.

Ozanimod Prospects

Pivotal trial data for Ozanimod for treatment of relapsing Multiple Sclerosis is expected to be released in 1H17, and could support approval in 2018. “The current ‘best-in-class’ S1P data-set, the +$17bn size of the market for MS drugs along with the +$3bn annual sales of Gilenya, all support our expectation for ~$1.5bn in Ozanimod sales during 2020E,” Leone wrote.

Other Prospects

The analyst expects data from the AUGMENT, RELEVANCE and ROBUST studies for Follicular Lymphoma and Diffuse Large B-Cell Lymphoma [DLBCL] to support additional Revlimid revenues of ~$1.1 billion by 2020. He added that phase 1 data from the CC-122 DLBCL Study is expected in 2H16 and could “represent a +$2.5 billion revenue opportunity for front-line use.”

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