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Why Celgene’s Otezla Is Expected to See Strong Demand Trends in 2017

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Otezla demand trends

In 2016, Celgene’s (CELG) Otezla witnessed a solid rise in demand, mainly due to the company’s strategy of directly communicating with plaque psoriasis patients through an effective DTC (direct-to-consumer) advertising campaign.

Celgene’s marketing efforts have translated into increasing brand awareness, which has subsequently led to more physicians prescribing Otezla to patients. Patients have also been staying with Otezla therapy longer due to its high efficacy and safety profile. Increased patient compliance has also helped drive Otezla’s demand in 2016.

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Market share

Based on Symphony prescriber-level data collected from July 2014 to December 9, 2016, it’s clear that Otezla has been increasing its share in the psoriasis market at a rate faster than AbbVie’s (ABBV) Humira, Amgen’s (AMGN) Enbrel,  and Johnson & Johnson’s (JNJ) Stelara.

In 2016, Celgene has also been actively working to improve payer access for the drug in the US. Around 90% of new patients are switching from a non-biologic therapy to Otezla. This highlights the success of Celgene in convincing payers to allow patients access Otezla without facing constraints related to prior therapies. With its targeted efforts, for 2017, Celgene has managed to expand access to Otezla for around 70–100 million commercial patients in the US.

Notably, the Vanguard Total Stock Market ETF (VTI) has about 0.39% of its total portfolio in CELG. For more on the access provisions for Otezla in the US, please refer to Market Realist’s “Will Access and Label Expansion Drive Celgene’s Otezla Growth?

In the next part of this series, we’ll analyze Celgene’s strategy for expanding Otezla’s addressable market.

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