Two Analysts Don't See Celgene's Weak Trial Results As A Huge Setback

Shares of Celgene CELG have been volatile since the company announced weak Phase III trial results for OTEZLA Wednesday morning.

The stock was trading in the red during the pre-market session, but has since rebounded. Wells Fargo and Deutsche Bank gave their opinions on the update.

Analyst Brian Abrahams is not very concerned about the trial results. According to Abrahams, missing the primary endpoint may have, “only an incremental negative effect.”

Abrahams further commented that this news items shouldn’t have a significant impact on the stock price.

Related: Citi Sees Plenty Of Q2 Earnings Beats Ahead In Biotech Sector

Robyn Karnauskas of Deutsche Bank is also not largely concerned about the test results.

“Signal may have been seen patients with early disease. But MRIs and radiographs need to be analyzed to further understand trend. Therefore, we can expect a reasonable delay in understanding the path forward with AS Co did see an efficacy signal in pre-specified subgroup of patients with early disease.”

Shares of Celgene were last trading 1.9 percent higher to $87.37.