This biotech is growing at double-digit rates, just settled a major patent litigation suit, and 16 of its 19 analysts rate the stock a ‘buy’ or ‘strong buy’.
Celgene (CELG)
From Wong’s BioTech Stock Report
Celgene’s (CELG) core business has three franchises, hematologic malignancy, solid tumors and inflammation and immunology, with each franchise anchored by a key product, REVLIMID, ABRAXANE and OTEZLA respectively. REVLIMID is built on thalidomide, a storied drug that laid the foundation for a revolution in treating multiple myeloma.
ABRAXANE is the latest iteration of the taxane class of drugs that is a cornerstone for treating solid tumors. And currently, ABRAXANE is the only branded taxane on the market. Moving away from oncology, OTEZLA is a first in class p38 MAP kinase inhibitor that is approved to treat psoriasis and psoriatic arthritis. OTEZLA is the only recently approved disease modifying oral agent for psoriasis and is positioned between the inexpensive low efficacy generic drugs and the injectable biologic agents.
On this backdrop, Celgene has established a broad collection of collaborations, many of which include cutting edge science to reinforce its leadership in these core areas as well as expand into allied fields such as inflammatory bowel disease with the recent acquisition of Receptos. The combination of oral antisense GED-0301 and ozanimod in Crohn’s and ulcerative colitis could add another $4-6 billion in opportunity. Most under-appreciated is Celgene’s emerging immunooncology platform, with potential best-in-class antibodies from Sutro and best-in-class bi-specifics from Zymeworks. Target price is $143.
Nadine Wong, Wong’s BioTech Stock Report, www.biotechnav.com, 503-659-1355, December 24, 2015