Shares of biotech giant Celgene (CELG) may be worth $200 per share if peak sales of late-stage assets, including luspatercept, ozanimod, and GED301 are met, said analyst Ying Huang.
LUSPATERCEPT: Luspatercept is an experimental drug in clinical trials for the treatment of anemia in beta thalassemia and myelodysplastic syndromes. It is being developed by Acceleron Pharma (XLRN) in collaboration with Celgene. In late June, Acceleron announced preliminary results from the ongoing Phase 2 study of luspatercept in patients with beta-thalassemia during an oral presentation at the 22nd Congress of the European Hematology Association, EHA. “With beta-thalassemia patients now remaining on study for over two years, we continue to be highly encouraged by luspatercept’s long-term efficacy results and safety profile,” said Habib Dable, CEO of Acceleron. “Combined with the rapid completion of enrollment in the BELIEVE Phase 3 trial, the program’s momentum continues to build alongside our enthusiasm to potentially transform the treatment of beta-thalassemia patients globally.”
TRANSFUSION INDEPENDENCE: According to a note out earlier, from BofA Merrill analyst Ying Huang, patients frequently become transfusion dependent in the treatment of myelodysplastic syndromes, MDS, and beta-thalassemia, “presenting substantial economic and social burdens.” Luspatercept is a novel treatment in these conditions and will reduce transfusion dependency, according to the analyst. “Based on review of available clinical data, we anticipate clinically meaningful responses in Phase 3 studies anticipated mid-2018,” said Huang.
POTENTIAL $1.8B IN SALES: Peak sales for luspatercept may be as high as $1.8B assuming ” 25%-30% peak penetration, $78,000 annual cost, and 77% probability of FDA approval,” said Huang. “The combined peak sales of late-stage assets including luspatercept, ozanimod and GED301 could reach $8.6B if all Phase 3 trials are successful in 2018,” added the analyst. In a best case scenario Celgene may be worth $200 per share, according to the research note. BofA Merril reiterated its Buy rating on Celgene shares.
