Celgene To See Major Upside In 2017, Says Canaccord

Canaccord Genuity reiterated its Buy rating and $156 price target on

Celgene CorporationCELG

. In the report published Friday, the analysts stated their positive outlook for the near-term data readouts for Revlimid from REMARC and Otezla in Atopic Dermatitis. Additionally, they expect 2017 holds major upside due to Phase 3 data for ozanimod in MS, and endoscopic data for GED-0301 in Ulcerative Colitis.

"Management maintained an appropriately measured view into Phase 3 REMARC data for Revlimid, which we believe is appropriate given the cooperative group nature of the study. Importantly, REMARC is one of five Revlimid + Rituxan or R2 studies in Lymphoma, and any potential shortcomings for REMARC would not necessarily be translatable to the other four Celgene-sponsored studies. Importantly, we note that Revlimid is already used off label in the US in NHL, suggesting only upside from the results of REMARC," wrote Canaccord.

According to the analysts, the company's management maintained a positive view for Otezlas value proposition and "pre-biologic" positioning and acknowledged that this paradigm may ultimately extend beyond psoriasis. The analyst believes any indication where Otezla shows meaningful efficacy vs. a biologic alternative represents upside due to lower pricing and oral dosing.

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