With Solid Growth And Strong Pipeline, Argus Is Positive On Celgene's Long-Term Prospects

In a report issued Tuesday, Argus analyst David Toung shared a look into Focus List-selected Celgene Corporation CELG, reiterating a Buy rating and $155 price target.

The expert argued that the company has not only managed to generate robust growth from its pharmaceuticals portfolio, but that a strong new product pipeline should support future growth – and investors will get an insight on it in the September 29 New York meeting.

While multiple myeloma drug Revlimid continues to be the No. 1 revenue contributor, plaque psoriasis and psoriatic arthritis treatment Otezla, with its triple-digit growth rate, might soon become another growth driver, Toung added.

The analyst then went into valuation. Trading at 14.9 times Argus’ 2017 EPS estimate, on par with its peers, the stock look quite attractive, especially when taking into account Celgene’s growth prospects.

A few events, catalysts and growth drivers to watch going forward include:

• The September 29 investors meeting in New York
• The results from a clinical study of GED 0301 for Crohn’s disease, expected in October.
• Revlimid sales.
• Pomalyst/Imnovid sales.
• Otezla sales.
• Abraxane sales.
• The results of studies evaluating the combination of Abraxaneand “other immune-oncology drugs, as a treatment for non-small-cell lung cancer and triple-negative breast cancer.”