UPDATE: Celgene (CELG) Remains Buy at Deutsche Bank - Correct

Deutsche Bank maintained a Buy rating on Celgene (NASDAQ: CELG) and lowered its price target to $95.00 (from $190.00). (note the stock was recently split) Comments follows phase 2 OTEZLA trial data.

"Celgene’s Apremilast trial for ankylosing spondylitis (AS) did not achieve its primary endpoint. As a reminder, this drug is approved for psoriatic arthritis and we expect approved in psoriasis after FDA review. Data will likely be presented next year.," said analyst Robyn Karnauskas. "Co did see an efficacy signal in pre-specified subgroup of patients with early disease. The patients were stratified by if they had disease for less than 5 years or more than 5 years. Co needs to wait for 52 weeks and radiograph data at 104. MRIs were done at baseline and at 52 weeks."

"We think expectations were relatively low heading into this event for success. Additionally, we do not model any sales for ankylosing spondylitis and viewed the event as upside to Apremilast numbers," added the analyst. "Our sense was there was a modest assumption for spondylitis in the guidance. In speaking to mgmt however, there is no change to the guidance range for 2015 and 2017 for the product. We think consistent safety is important for the launches of psoriatic arthritis and psoriasis. This is another large study of close to 500 people where safety continues to remain positive"

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 $85.72 yesterday.

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