Celgene's Phase 3 Study Of REMARC Likely To Be Successful, Says Jefferies

Success in Celgene Corporation CELG’s Phase III Revlimid Study for lymphoma isn't a sure thing. However, Jefferies analysts have analyzed the situation and concluded that, “REMARC is more likely than not to work.” Data for REMARC is expected during the summer.

Regardless of the study’s result –- for which they estimate a 65 percent chance of success -- the firm sees limited upside or downside ($1 to $3 to DCF, although the move in shares could be slightly larger) and “minimal readthrough to other lymphoma indications.”

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Consequently, Jefferies reiterated a Buy rating and $140 price target on shares. The company has a strong pipeline and robust long-term growth prospects, the report concluded, recommending investors to take advantage of the volatility the stock recently experienced due to macro and near-term catalyst worries.