Deutsche Bank Upgrades Celgene (CELG) to Buy; Sees Big Opportunity for Apremilast

April 5, 2013 7:54 AM EDT Send to a Friend
Get Alerts CELG Hot Sheet
Price: $112.82 --0%

Rating Summary:
    22 Buy, 8 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 19 | Down: 38 | New: 50
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Deutsche Bank upgrades Celgene (Nasdaq: CELG) from Hold to Buy, moving its price target from $105 up to $143.

Deutsche comments, "Although we were concerned about Revlimid being the sole driver, we have warmed to revenue diversification with Abraxane & Pomalyst. Apremilast, being developed for psoriasis & psoriatic arthritis (PsA), is really the one asset where consensus expectations are below co. guidance. We too were somewhat concerned after initial checks on Apremilast. However, after a further survey of 100 dermatologists & rheumatologists, who suggest Apremilast is a blockbuster, we are encouraged."

A 10 percent share for Apremilast equals a $3.5 billion drug. Deutsche assumes: "1) a slow launch 5-6 years 2) ~10% total share mostly coming from MTX or biologic failures 3) 40% discount in price to biologics ($13K)."

For an analyst ratings summary and ratings history on Celgene click here. For more ratings news on Celgene click here.

Shares of Celgene closed at $115.95 yesterday.


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