Celgene 3Q15: Focus on Inflammation and Immunology Drugs



Inflammation and immunology segment

Through 2Q15 and 3Q15, Celgene (CELG) has been actively launching its inflammation drug, Otezla, for psoriasis and psoriatic arthritis. The company has witnessed a rapid uptake of the drug in the US psoriasis market, despite competition from AbbVie’s (ABBV) Humira, Novartis’s (NVS) Cosentyx, and Amgen’s (AMGN) Enbrel. This trend is expected to boost Celgene’s revenues and profit margins in 3Q15.

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Expectations for 2020

The diagram above shows that by 2020, Celgene is expected to earn more than $4 billion from its inflammation and immunology, or I&I, segment, where $2.3 billion could be earned from existing products, mainly Otezla. To know more about Celgene’s I&I drug portfolio, please refer to Celgene’s Growing Inflammation and Immunology Pipeline.

New opportunities

Announced on July 14, 2015, Celgene completed the $7.2 billion acquisition of Receptos in August 2015. This acquisition added Ozanimod, a drug in late-stage research, with projected peak sales between $4 billion and $6 billion. The drug is currently in phase III trial for relapsing multiple sclerosis (or RMS) and ulcerative colitis (or UC), and in phase I trial for Crohn’s disease. Celgene expects the drug to enter the US market for RMS in 2018, and for UC in 2019.

Celgene is also exploring the Crohn’s disease market with a drug called GED-0301. Expected to launch in 2019, GED-0301 is currently in its phase III clinical trial. If successful, this drug is expected to be one of the company’s blockbuster therapies.

Additionally, Celgene has its I&I drugs CC-220 for lupus, Sotatercept for renal anemia/bones, and RPC 4046 for eosinophilic esophagitis in phase II clinical trials.

Celgene accounts for 3.7% of the Health Care Select Sector SPDR Fund’s (XLV) total holdings.


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