Analyst Christopher Raymond says Celgene provided an increasingly positive efficacy profile in both multiple myeloma and MDS for Revlimid at the American Society Clinical Oncology (ASCO) meeting.
The company notes in both trials, the primary endpoint of time-to-progression was reached. Also impressive, an updated complete response data improved with additional follow-up.
Raymond views the Celgene story as incrementally more positive and now applies a 50 times multiple to his 93 cents 2006 earnings per share estimate, discounted back 15% per year and yielding a new $42 price target. However, he still believes Revlimid is not without risk and keeps a neutral rating.