UPDATE: BMO Capital Markets Reiterates Celgene at Outperform on Better PALACE-1 Study Results
In a report published Tuesday, BMO Capital Markets reiterated Celgene Corporation (NASDAQ: CELG) following PALACE-1 Study Results that came out better than expected and maintained its price target of $90.
BMO Capital Markets noted, "PALACE-1 results are better than expected, superior to that seen in phase 2 and suggest symptom benefits comparable to injectable anti-TNF agents. Improved efficacy with apremilast monotherapy vs. combination therapy with MTX should support switching vs. add-on use, a potential benefit given problems with MTX safety and efficacy to begin with. We are awaiting YE12 data on apremilast in psoriasis (PsO) and further detail on pricing to add apremilast revenues to our model but with ~600,000 eligible patients and premium pricing to $4-$6K/year DMARDS we believe that a $1B+ opportunity is emerging worth ~$5/share today. [Our] $90 price target is based on 16x our 2013 non-GAAP EPS estimate of $5.63, and mainatin an Outperform rating on the stock."
Celgene closed at $74.40 on Tuesday.
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Tags: BMO Capital Markets