June 30, 2015 | 11:51 AM by Fahad Khalid | fkhalid@jaguaranalytics.com

Celgene (CELG) & Juno Therapeutics (JUNO) Street Takeaways

Celgene (CELG) & Juno Therapeutics (JUNO) – Street Takeaways after CELG announces 10-year immuno-oncology deal and $1B investment in Juno Therapeutics :

Leerink analyst Howard Liang –
Very positive on the deal, for both parties. Juno gains substantial upfront funding while still maintaining itself as an independent company, and Celgene gains access to one of the most extensive CAR-T pipelines in the industry.
Rating (JUNO) is outperform, target $74
Rating (CELG) is outperform, target $150

Cantor Fitzgerald analyst Mara Goldstein –
Positive on the collaboration. Although expensive, suggests that the deal solidifies Celgene’s presence in the oncology market. Appreciates Celgene’s aggressiveness in pursuing targets that will potentially add to its long term growth. Questions remain over CAR-T’s likelihood of commercial success, but prefers to see Celgene ahead, rather than chasing behind the technology’s potential. Positive on Celgene shares. The company has increasingly diversified its portfolio with the launches of Abraxane, Pomalyst and Otezla, which, in addition to Revlimid, should drive near-term growth. The company’s robust phase 2 pipeline presents future growth opportunities.
Reiterates buy rating (CELG) and target $145

Cowen analyst Eric Schmidt –
Positive on deal for Celgene; does not see the payment as particularly aggressive considering the candidates and technology that Celgene will get access to. Remains unclear how Celgene and Juno will get access to Kite Pharm’s (KITE) and bluebird bio’s (BLUE) important IP in the space.
Rating (CELG) is outperform, target $146

UBS analyst Matthew Roden –
Cautiously positive on the deal. Given that the companies have not yet specified candidates, it remains difficult to evaluate deal, but if CAR-T technology emerges as important, Celgene will benefit. Positive on Celgene; noting that the company’s numerous and innovative pipeline collaborations offer the potential for long-term value generation.
Rating (CELG) is buy, target is $130.

Bernstein analyst Geoffrey Porges –
Cautious on the deal. Given the limited validation for CAR-T cell approaches and numerous competitors in the immuno-oncology space, sees the deal as expensive and risky for Celgene. Companies disclosed very little information about specific products, making it near impossible to evaluate whether spending $1B is justifiable. Remains optimistic on Celgene’s long-term oncology prospects. Expects Revlimid patent protection through 2026 in U.S., and believes Abraxis diversifies the portfolio and offers revenue growth opportunity. Cautious on I&I franchise given strong competition in space and limited GED0301 data thus far.
Rating (CELG) is outperform, target is $154

#CELG#JUNO
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