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Analysts’ Recommendations for Celgene in August 2017

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Recent approval

In August 2017, the FDA approved Celgene’s (CELG) and Agios Pharmaceuticals’ (AGIO) Idhifa for the treatment of adult individuals with relapsed or refractory acute myeloid leukemia (or AML). These individuals also have an isocitrate dehydrogenase-2 (IDH2) mutation as detected by any FDA-approved test.

The FDA approval of Idhifa was based on results from study AG221-C-001, a multicenter, single-arm, two-cohort clinical trial. In the clinical trial, 23% of the patients on Idhifa therapy demonstrated complete response/complete response with partial hematologic improvement rate (or CR/CRh) along with the median duration of 8.2 months.

Among patients who achieved CR/CRh, 85% could reach it within six months of initiating Idhifa. In the trial, 1.9 months was the median time to first response and 3.7 months was the median time to best response of CR/CRh.

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Analysts’ recommendations

Of the 27 analysts covering Celgene (CELG) in August 2017, 12 analysts recommended a “strong buy” while ten analysts recommended a “buy.” Four analysts recommended a “hold,” and one analyst recommended a “sell.”

Around 81% of the analysts recommended some form of a “buy” rating. Celgene had a consensus 12-month target price of $150.17, which represents ~9.9% growth potential from the current price.

Peers’ ratings

Twenty-two analysts were analyzing Pfizer (PFE) in August 2017. One analyst recommended a “strong buy,” and ten analysts suggested a “buy.” Ten analysts tracking Pfizer suggested a “hold,” and one analyst recommended a “strong sell.”

Around 50% analysts tracking Pfizer in August 2017 recommended some form of a “buy” rating. Pfizer had a consensus target price of $37.60, which represents ~11.8% growth potential from the current price.

Twenty-four analysts were tracking Amgen (AMGN) in August 2017. Four analysts recommended a “strong buy,” and six analysts recommended a “buy.” Fourteen analysts recommended a “hold,” and none of the analysts recommended any form of a “sell” rating.

Around 42% of the analysts covering Amgen in August 2017 recommended some form of a “buy” rating. Amgen had a consensus target price of $187.21, which represents ~7.7% growth potential from the current price.

The iShares NASDAQ Biotechnology ETF (IBB) has ~9.4% of its total portfolio holdings in Celgene.

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