Celgene Could Achieve 2020 Targets, BTIG Upgrades To Buy

Although Celgene Corporation’s 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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