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CELG

Celgene

$91.53

-0.23 (-0.25%)

, AMGN

Amgen

$177.43

1.32 (0.75%)

09:15
07/17/19
07/17
09:15
07/17/19
09:15

Amgen seen by Mizuho as 'most likely' buyer of Celgene's Otezla

In the wake of the recent announcement that Bristol-Myers (BMY) plans to divest Otezla as part of its deal to acquire Celgene (CELG), Mizuho analyst Salim Syed said he has received questions on who could be a realistic buyer. He believes the "most likely" buyer would be Amgen (AMGN), followed by Johnson & Johnson (JNJ), which he would label as a "likely" buyer. Syed identifies the "less likely, but possible" buyers as Eli Lilly (LLY) and Regeneron (REGN). The analyst, who said Otezla is worth anywhere from $5B-$10B depending on the view of sales and synergy potential, keeps a Buy rating and $103 price target on Celgene shares.

CELG

Celgene

$91.53

-0.23 (-0.25%)

AMGN

Amgen

$177.43

1.32 (0.75%)

BMY

Bristol-Myers

$44.45

0.25 (0.57%)

JNJ

Johnson & Johnson

$132.46

-2.21 (-1.64%)

LLY

Eli Lilly

$108.81

0.36 (0.33%)

REGN

Regeneron

$298.40

0.08 (0.03%)

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CELG Celgene
$91.53

-0.23 (-0.25%)

06/24/19
CANT
06/24/19
NO CHANGE
Target $100
CANT
Neutral
Celgene pushback surprising, but deal should still close, says Cantor Fitzgerald
Cantor Fitzgerald analyst Alethia Young said she was surprised by the FTC pushback around Otezla and its overlap in psoriasis related to Celgene's (CELG) oral TYK2 program BMS-986165 in psoriasis given that the latter has not yet reported Phase 3 data. After speaking to Bristol-Myers (BMY), Young said management was also disappointed in this FTC decision, which they said was not related to current asset Orencia marketed for rheumatoid arthritis, juvenile idiopathic arthritis, and psoriatic arthritis. Though timelines are delayed, she still sees "a high likelihood" that the deal closes, but potentially 4-6 months behind schedule. Young, who sees many players in Inflammation & Immunology that could leverage oral Otezla with their existing salesforce, added that Bristol may not lose much in value from this divestiture if the process is competitive. She keeps a Neutral rating and $100 price target on Celgene shares.
06/25/19
WBLR
06/25/19
NO CHANGE
WBLR
Outperform
Bristol-Myers sentiment suffered 'double hit' yesterday, says William Blair
William Blair analyst Matt Phipps said Bristol-Myers (BMY) suffered a "double hit to sentiment" yesterday with the news of both the CheckMate-459 trial failure in first-line hepatocellular carcinoma and delay of the closing of its Celgene (CELG) deal due to the required Otezla divestiture. He had previously modeled Opdivo sales in the front-line setting of over $1B and Otezla sales growing to $3B before loss of exclusivity in 2028 and decreased his out-year EPS estimates by over $1.00 due to yesterday's news. However, although near-term sentiment is dampened, he still sees a long-term opportunity, said Phipps, who keeps an Outperform rating on Bristol-Myers shares.
05/20/19
05/20/19
DOWNGRADE

Hold
Bristol-Myers downgraded to Hold from Buy at Argus
As previously reported, Argus analyst David Toung downgraded Bristol-Myers (BMY) to Hold from Buy, saying he has "serious concerns" about the company's growth prospects after its announced acquisition of Celgene (CELG). The analyst contends that Celgene's pipeline is not sufficient to offset the expected decline in revenues from its Revlimid, which will lose exclusivity in 2026. Toung adds that Bristol-Myers' "patent cliff" is also notable with loss of exclusivity expected for Opdivo in 2028, Eliquis in 2026, and Orencia in 2021. While the stock trades at 10.5-times forward earnings multiple - a discount to the 12-times peer group average - the analyst believes the valuation is appropriate.
05/28/19
GSCO
05/28/19
INITIATION
Target $54
GSCO
Buy
Bristol-Myers initiated with a Buy at Goldman Sachs
Goldman Sachs analyst Terence Flynn started Bristol-Myers Squibb with a Buy rating and $54 price target. Bristol-Myers is trading at a "significant discount to the group," Flynn tells investors in a research note. The analyst says his call is based on valuation, and he sees potential for multiple expansion whether or not the Celgene (CELG) acquisition closes.
AMGN Amgen
$177.43

1.32 (0.75%)

06/07/19
GUGG
06/07/19
DOWNGRADE
GUGG
Neutral
Guggenheim downgrades Mirati to Neutral following near-tripling of stock
As previously reported, Guggenheim analyst Michael Schmidt downgraded Mirati Therapeutics (MRTX) to Neutral from Buy, noting that the shares have nearly tripled since data were presented at the European Society for Medical Oncology, or ESMO, meeting in October. While Schmidt said Amgen's (AMGN) KRAS inhibitor Phase I data presented at the American Society of Clinical Oncology meeting validates MRTX849's potential mechanism of action, he sees a "lot of upside" priced in at the current valuation despite the remaining development risks. He also believes investor expectations have significantly increased ahead of Mirati's own Phase I data presentation in the second half of the year.
06/05/19
HCWC
06/05/19
NO CHANGE
Target $117
HCWC
Buy
Mirati Therapeutics price target raised to $117 from $84 at H.C. Wainwright
H.C. Wainwright analyst Edward White raised his price target for Mirati Therapeutics (MRTX) to $117 from $84 saying the positive data for Amgen's (AMGN) AMG 510 bode well for Mirati's MRTX849. The analyst believes the AMG 510 data "somewhat derisks" the development of MRTX849/ He raised his estimate for probability of success for MRTX849 to 20% from 10% and keeps a Buy rating on Mirati Therapeutics.
06/05/19
LEHM
06/05/19
NO CHANGE
Target $123
LEHM
Overweight
Mirati Therapeutics price target raised to $123 from $85 at Barclays
Barclays analyst Gena Wang raised her price target for Mirati Therapeutics (MRTX) to $123 from $85 saying Amgen's (AMGN) AMG510 data support KRAS G12C as a validated target, and the "impressive" data provide proof of concept for potentially single agent activity in non-small cell lung cancer. The analyst continues to believe that Mirati's MRTX849 could have a more favorable profile based on the preclinical results, including "longer half-life and good tissue penetration." She reiterates an Overweight rating on Mirati Therapeutics.
07/15/19
PIPR
07/15/19
NO CHANGE
PIPR
Piper reiterates Overweight on Cytokinetics after completion of trial enrollment
Piper Jaffray analyst Edward Tenthoff reiterated an Overweight rating and $14 price target on Cytokinetics (CYTK) after Amgen (AMGN) completed enrollment of more than 8,200 Heart Failure patients in its Phase III GALACTIC-HF trial of omecamtiv mecarbil. The analyst anticipates an interim GALACTIC-HF efficacy analysis in 2020, with final data likely in 2021.
BMY Bristol-Myers
$44.45

0.25 (0.57%)

07/11/19
RAJA
07/11/19
NO CHANGE
RAJA
Death of drug rebate rule a win for PBMs and distributors, says Raymond James
After multiple media outlets, including Politico, reported that the Trump Administration has decided to withdraw the drug rebate rule, Raymond James analyst Chris Meekins called the news "a win" for pharmacy benefit managers and drug distributors and "a slight negative" for the pharmaceutical makers. The cost of the proposal to the government was ultimately too high with little guarantee that list prices would go down, said Meekins. However, President Trump hinted something "major" on drug pricing was coming over the next week during his kidney care speech and the analyst thinks the President is planning to move forward with an executive order on pricing. Publicly traded pharmaceutical distributors include McKesson (MCK), Cardinal Health (CAH), Amerisource (ABC) and Patterson (PDCO). Owners of pharmacy benefit managers include CVS Health (CVS), UnitedHealth (UNH), Anthem (ANTM) and Cigna (CI). Publicly traded large cap drugmakers include AstraZeneca (AZN), Bristol-Myers (BMY), Eli Lilly (LLY), GlaxoSmithKline (GSK), Johnson & Johnson (JNJ), Merck (MRK), Novartis (NVS), Pfizer (PFE), Roche (RHHBY) and Sanofi (SNY).
05/30/19
GUGG
05/30/19
NO CHANGE
GUGG
Buy
Array BioPharma could be seen as target after 'de-risking' data, says Guggenheim
Guggenheim analyst Michael Schmidt said Array Biopharma (ARRY) may be perceived by investors as a theoretical acquisition target following the disclosure of Phase 3 interim results of Braftovi/Mektovi in BRAF+ colorectal cancer, which he views as positive and a "de-risking event." 67% of announced acquisitions in oncology with a comparable market cap to Array had what he would consider major pipeline de-risking events in the 6 months prior to their deal announcements, Schmidt tells investors. Merck (MRK) and Pfizer (PFE) "seem to have most bandwidth for a deal," said Schmidt, who added that those two along with Bristol-Myers (BMY), AstraZeneca (AZN) and Roche (RHHBY) scored highest as possible large cap theoretical acquirers of Array in his analysis. Schmidt raised his price target on Array Biopharma shares to $38 from $37, though his analysis suggests a potential $40-$50 acquisition price if the company were to be bought.
JNJ Johnson & Johnson
$132.46

-2.21 (-1.64%)

07/12/19
FBCO
07/12/19
INITIATION
Target $156
FBCO
Outperform
Johnson & Johnson assumed with an Outperform at Credit Suisse
Credit Suisse analyst Matt Miksic assumed coverage of Johnson & Johnson with an Outperform rating and $156 price target. In a research note to investors, Miksic cites key drivers to the rating, including continued growth in Immunology, driven by Stelera and Tremfya, sustainable growth in Oncology driven by Imbruvica, Darzelex and Erleada, an "attractive" pipeline of filings in the 2019-2023 timeframe with greater than$1B potential each, and "stable" growth and cash flows in Medical Devices and Consumer.
07/11/19
JEFF
07/11/19
NO CHANGE
Target $40
JEFF
Buy
Australia implants decision a 'big positive' for Establishment, says Jefferies
After Australia's Therapeutic Goods Administration proposed to cancel or suspend use of textured breast implants, concluding that these devices are associated with a higher rate of anaplastic large cell lymphoma, or ALCL, Jefferies analyst Raj Denhoy called the decision a "big positive" for Establishment Labs (ESTA). The decision is still in the proposal stage, but Establishment is the only manufacturer with products approved in Australia that is not on the list, which proposes to ban implants from Allergan (AGN), J&J's (JNJ) Mentor and other manufacturers, according to Denhoy. He keeps a Buy rating and $40 price target on shares of Establishment Labs.
07/12/19
WELS
07/12/19
NO CHANGE
Target $29
WELS
Outperform
Australia implant ban 'excellent news' for Establishment Labs, says Wells Fargo
Wells Fargo analyst David Maris believes Australia's proposal to ban, suspend or impose strict restrictions on a number of textured implants from Allergan (AGN), Johnson & Johnson (JNJ) and other smaller manufacturers is "excellent news" for Establishment Labs Holdings (ESTA). The move by Australia's regulatory body Therapeutic Goods Administration will help solidify Establishment's reputation for safety as the company's Motiva brand is the only listed company without any restricted brands, Maris tells investors in a research note. Further, Australia is a highly regulated and developed market, so the ban could help shift market share in other geographies outside of the county as well, contends the analyst. Maris reiterates an Outperform rating on Establishment Labs with a $29 priced target. The stock closed yesterday up $1.54 to $22.44.
07/12/19
RAJA
07/12/19
NO CHANGE
RAJA
Outperform
DOJ investigation of J&J 'not new news,' says Raymond James
Raymond James analyst Jayson Bedford said that "technically" it is not "new news" that the DOJ is investigating Johnson & Johnson's communications around the alleged cancer risks of its talcum powder products as J&J previously disclosed an inquiry in its latest 10-Q filing. He notes J&J has responded to a Bloomberg article on the investigation by stating that there have been no new developments, though this risk was "clearly" underappreciated by investors. Though Bedford still thinks J&J has a strong case, today's reaction is an indication that the talc issue will remain "top-of-mind" and a headline risk, he added. Bedford has an Outperform rating on Johnson & Johnson shares.
LLY Eli Lilly
$108.81

0.36 (0.33%)

05/30/19
WELS
05/30/19
NO CHANGE
WELS
U.S. generic data continues to show challenging environment, says Wells Fargo
Wells Fargo analyst David Maris says that according to April IQVIA data, Teva (TEVA) U.S. generic sales were down 19% in April year over year, while brands sales were down 15%. Additionally, according to IQVIA data, Teva recently ceded its second place U.S. prescription market share place to competitor Eli Lilly (LLY) for its migraine drug, Ajovy, he points out. For Mylan (MYL), Maris says the monthly trends also paint a negative picture, with IQVIA U.S. generic sales in April down 36%. Nonetheless, the analyst believes Teva and Mylan shares seem to be reflecting an "aggressively negative outlook" given the current earnings multiples, and setting aside the worst-case outcomes in the opioid and price fixing cases, these may be at or nearing attractive valuations. However, for now, he remains on the sidelines, and within generics, continues to recommend Outperform-rated Amphastar (AMPH).
06/11/19
LEHM
06/11/19
UPGRADE
LEHM
Equal Weight
Novo Nordisk upgraded to Equal Weight from Underweight at Barclays
Barclays analyst Emmanuel Papadakis upgraded Novo Nordisk (NVO) to Equal Weight from Underweight and raised his price target for the shares to 325 kronor from 275 kronor. The analyst views competitor updates at the American Diabetes Association conference, specifically from Eli Lilly (LLY), as "underwhelming."
06/11/19
JPMS
06/11/19
NO CHANGE
JPMS
Overweight
Eli Lilly Rewind data missed 'fairly high' expectations, says JPMorgan
JPMorgan analyst Chris Schott is not surprised by the weakness yesterday in shares of Eli Lilly as he believes the Rewind data came in below "fairly high" expectations. However, the analyst ultimately sees the data confirming a cardiovascular benefit for Trulicity and supporting "continued strong Trulicity/GLP-1 uptake." Further, Schott sees the tirzepatide data at the American Diabetes Association conference as continuing to highlight a potentially best in class efficacy profile for the product. Lilly remains the analyst's top pick in his pharma coverage.
REGN Regeneron
$298.40

0.08 (0.03%)

06/18/19
06/18/19
DOWNGRADE

Fly Intel: Top five analyst downgrades
Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. InterContinental (IHG) downgraded to Underweight from Equal Weight at Barclays with analyst Vicki Stern stating downside risks from a macroeconomic slowdown are not reflected in the stock at current valuation levels. 2. Freshpet (FRPT) downgraded to Hold from Buy at SunTrust with analyst William Chappell saying his positive view of the company's fundamental story and outlook have not changed, but he cannot recommend for new investors to buy the stock at its current levels. 3. Regeneron (REGN) downgraded to Hold from Buy at Argus with analyst Jasper Hellweg noting that while the company has a "strong pipeline" with new recent indications for multiple products, its primary revenue driver Eylea is facing several competitive threats. 4. Oracle (ORCL) downgraded to Neutral from Outperform at Macquarie with analyst Sarah Hindlian telling investors that her checks suggest that closing the fourth quarter "was a struggle," with partners saying they had to rush to discount orders up until the final days. 5. J.B. Hunt (JBHT) downgraded to Neutral from Buy at UBS with analyst Thomas Wadewitz citing his increasing conviction that after a period of strong freight and unusually strong pricing in 2018, the downturn in freight will persist through 2019 amid "falling truckload and intermodal contract rates" for 2020. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.
06/21/19
STFL
06/21/19
DOWNGRADE
Target $74
STFL
Hold
AnaptysBio downgraded to Hold from Buy at Stifel
Stifel analyst Derek Archila downgraded AnaptysBio (ANAB) to Hold from Buy as he is less confident etokimab will be meaningfully differentiated from Sanofi (SNY) and Regeneron's (REGN) Dupixent after the latter companies reported results from their Phase 2 study for REGN3500, an antiIL-33 antibody, in asthma. REGN3500 did numerically worse than Dupixent as a monotherapy and the combination of REGN3500/Dupixent did not confer a benefit over Dupixent alone, noted Archila. He lowered his view on the odds of success for etokimab to 50% from 55% and also cut his market share assumptions following the competitors' data. Archila cut his price target on AnaptysBio shares to $74 from $124.
06/18/19
06/18/19
DOWNGRADE

Hold
Regeneron downgraded to Hold at Argus on mounting threats to Eylea
As previously reported, Argus analyst Jasper Hellweg downgraded Regeneron (REGN) to Hold from Buy, saying that while the company has a "strong pipeline" with new recent indications for multiple products, its primary revenue driver Eylea is facing several competitive threats. The analyst notes that Novartis (NVS) could launch a biologic designed to treat Eylea's key indication of wet age-related macular degeneration by the end of Q2 and also notes that the drug's patents are set to expire in 2022 in China and Japan, 2023 in the U.S., and 2024 in Europe. Hellweg adds that he will return his Regeneron rating to Buy if the company demonstrates that it can offset the impact of reduced Eylea sales, which accounted for over 75% of total revenue in Q1.
06/21/19
JEFF
06/21/19
NO CHANGE
JEFF
Buy
Jefferies reiterates Buy on AnaptysBio, says Regeneron data 'best case'
Jefferies analyst Biren Amin says that while the selloff this morning in AnaptysBio (ANAB) shares suggests that its etokimab has lower odds after Regeneron's (REGN) REGN3500 data, the data from Regeneron are actually a "best case scenario." The combo of REGN3500 and Dupixent did not offer any additional benefit, says the analyst, who viewed that arm as the greatest long-term risk to etokimab. Also, not all antibodies are built the same, Amin tells investors in a research note titled "Don't Throw The Baby Out With Bathwater; A Lesson To Be Learned From AMG-317." He notes that AMG-317 failed in asthma, and targets IL-4, and yet Dupixent has seen success. The analyst reiterates a Buy rating on AnaptysBio and awaits the company's data in the second half of the year. The stock in early trading is down 15%, or $9.82, to $57.20.

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