Celgene Corporation (CELG) Settles REVLIMID Patent Litigation


After the market closed this afternoon, Celgene Corporation (NASDAQ:CELG) announced that they have reached a settlement with Watson Laboratories, Inc., Natco Pharma Ltd. and Arrow International Limited regarding their recent REVLIMID patent litigation. As a part of the settlement, Celgene Corporation (NASDAQ:CELG) will allow for generic lenalidomide to enter the market prior to the April 2027 patent expiration, and has agreed to license their patents to Natco, which will allow them to sell generic lenalidomidein the U.S. starting in 2026, among other benefits.

“We believe strongly in our patent estate for REVLIMID®, and that this settlement appropriately recognizes the strength of our patents. This settlement provides clarity around the future of REVLIMID®, and we will continue to focus on developing our many important pipeline assets, which provide great potential promise to patients with unmet medical needs,” said Bob Hugin, Chairman and CEO of Celgene Corporation. “We remain confident in the strength of our patents, and will continue to vigorously defend them.”

Shares of Celgene Corporation (NASDAQ:CELG) are trading up $8.86 or 7.97% in the after hours, following this news. The stock increased 0.27% or $0.3 during the last trading session, hitting $111.14. About 2.83 million shares traded hands. CELG has declined 5.14% since May 19, 2015 and is downtrending. It has underperformed the S&P500 by 2.88%.

From a total of 9 analysts covering Celgene Corporation (NASDAQ:CELG) stock, 8 rate it a “Buy”, 0 a “Sell”, and 1 a “Hold”. This means that 89% of the ratings are positive. The highest target price is $190 while the lowest target price is $134. The mean of all analyst targets is $149.78 which is 34.77% above today’s ($111.14) stock price. Celgene Corporation was the topic of 15 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Wells Fargo maintained shares on December 4 with a “Outperform” rating. Cowen & Co maintained shares with a”Outperform” rating and a $150 target share price in their report from an August 12. UBS maintained CELG stock in a recent report from November 6 with a “Buy” rating. Finally, Raymond James initiated the stock with a “Strong-Buy” rating in a report they issued on a September 1.

The institutional sentiment increased to 0.99 in Q2 2015. It’s up 0.09, from 0.9 in 2015Q2. The ratio improved, as 69 funds sold all their Celgene Corporation shares they owned while 447 reduced their positions. 76 funds bought stakes while 434 increased their total positions. Institutions now own 636.33 million shares which is 3.02% more than the previous share count of 617.70 million in 2015Q2.

Oaktop Capital Management Ii L.P. holds 50.66% of its total portfolio in Celgene Corporation, equating to 2.09 million shares. Birchview Capital Lp owns 732,553 shares representing 44.79% of their total US portfolio. Moreover, Fcg Advisors Llc has 20.25% of their total portfolio invested in the company, equating to 366,782 shares. The New Jersey-based Selkirk Management Llc has a total of 17.39% of their portfolio invested in the stock. Obermeyer Wood Investment Counsel Lllp, a Colorado-based fund reported 1.09 million shares owned.

Since May 15, 2015, the stock had 0 insider buys, and 6 selling transactions for a total of $17.19 million in net activity. Kaplan Gilla sold 15,000 shares worth $1.84M. Casey Michael D sold 15,000 shares worth $1.83M. Daniel Thomas O sold 25,578 shares worth $3.35 million. Mario Ernest sold 19,442 shares worth $2.56 million. The insider Karsen Perry A sold 47,173 shares worth $5.42M.

Celgene Corporation , together with its subsidiaries, is an integrated biopharmaceutical firm engaged primarily in the discovery, development and commercialization of therapies for the treatment of cancer and inflammatory diseases through gene and protein regulation. The company has a market cap of $87.08 billion. The Company’s primary commercial stage products include REVLIMID (lenalidomide), ABRAXANE, POMALYST/IMNOVID, VIDAZA, azacitidine for injection (generic version of VIDAZA), THALOMID (sold as THALOMID or Thalidomide Celgene outside the United States), OTEZLA (apremilast) and ISTODAX (romidepsin). It has 55.97 P/E ratio.