Morgan Stanley Looks Over Celgene's Quarter
In a report published Friday, Morgan Stanley analysts maintained an Equal-Weight rating on Celgene Corporation (NASDAQ: CELG), while raising the price target from $109 to $110, after the company's quarterly results reflected in-line Revlimid and weakness across the rest of the portfolio.
The company announced quarterly revenue of $2.08B, short of expectations. However, the EPS was higher, at $0.01, with the beat being driven by
Revlimid (+$10M) sales were roughly in-line with consensus, while Abraxane (-$19M), Pomalyst/Imnovid (-$13M), and Otezla (-$12M) missed expectations.
Celgene reiterated its total revenue guidance for 2015 at $9.00-$9.50B, while projecting non-GAAP EPS at $4.60-$4.75, Revlimid sales of $5.60-$5.70B, Abraxanesales of $1-$1.25B, and operating margins at ~52 percent.
In the report Morgan Stanley noted "tidbits from the call":
- -$22M of the-$27M top-line f/x headwind was from Revlimid. The q/q f/x impact on Revlimid was -$10M
- The unhedged to-pline f/x impact was -5.8 percent
- The company said Revlimid sales may reach or exceed the upper end of the guidance range ($5.6-$5.7B)
- R&D is expected to increase through the year on account of "increasing collaboration and clinical costs"
- 85 percent of the $7.3B cash balance is ex-US
- Mgt. expects Abraxane sales to meet the lower end of range ($1-$1.25B)
- Mgt. indicated that Revlimid in "newly diagnosed MM had similar trends in Germany to what it saw in the early US launch."
- Early data indicate "Otezla persistence is similar to psoriasis analogues in the space"
- Otezla has received incremental share by "patients transitioning more quickly from methotrexate - a positive sign
- On GED-0301, Mgt. highlighted the presentations at DDW with a sub-analysis on patient reported outcomes and response by baseline level of disease activity
Latest Ratings for CELG
|Nov 2016||Oppenheimer||Initiates Coverage On||Outperform|
|Nov 2016||Standpoint Research||Downgrades||Buy||Hold|
|Nov 2016||Mizuho||Initiates Coverage On||Buy|
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