CELG

Celgene Corp

Healthcare


Presented:02/22/2017
Price:$119.27
Cap:$95.68B
Current Price:$108.24
Cap:$77.04B

Presented

Date02/22/2017
Price$119.27
Market Cap$95.68B
Ent Value$98.81B
P/E Ratio48.09x
Book Value$8.48
Div Yield0%
Shares O/S802.20M
Ave Daily Vol4,230,654
Short IntN/A

Current

Price$108.24
Market Cap$77.04B
Celgene Corp. is an integrated global biopharmaceutical company engaged primarily in the discovery, development and commercialization of therapies for the treatment of cancer and inflammatory diseases through gene and protein regulation. Its targeting areas include intracellular signaling pathways, protein homeostasis and epigenetics in cancer and immune cells, immunomodulation in cancer and autoimmune diseases and therapeutic application of cell therapies. The company's products include Revlimid, Vidaza, Thalomid, Pomalyst/Imnovid, Abraxane, and Istodax. Celgene was founded by David Stirling and Sol Barer in 1986 and is headquartered in Summit, NJ.

Publicly traded companies mentioned herein: Biogen Inc (BIIB), Celgene Corporation (CELG), Sanofi SA (SNY)

Highlights

The presenter believes Celgene’s (CELG) ozanimod (an oral, selective S1P 1 and 5 receptor modulator) is an underappreciated asset that could take share in the relapsing multiple sclerosis (RMS) segment of the MS market. He is long the stock at $119 and sees the potential for management to raise guidance when the company reports Q1 2017 results (projected report date: April 27, 2017). Celgene acquired the rights to ozanimod when it bought Receptos (a $7.2 billion, 2015 deal); more recently, the drug met the primary endpoint [reducing annualized relapse rate (ARR)] in its SUNBEAM study versus Biogen’s Avonex. With the regulatory filing expected in 2H 2017 and overall expectations low, there is the potential for a guidance revision and the presenter thinks 2020 revenue expectations could jump by over $1 billion to $22+ billion. In this scenario, he believes 2020 EPS could fall in the $13.50-13.75 realm, and the stock should react favorably to the news.

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Idea Discussion

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