Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nasdaq  >  Celgene Corporation    CELG

CELGENE CORPORATION

(CELG)
  Report  
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Celgene : Deal Faces Antitrust Delays

share with twitter share with LinkedIn share with facebook
share via e-mail
0
06/25/2019 | 02:48am EDT

By Joseph Walker

Bristol-Myers Squibb Co. said its $74 billion merger with Celgene Corp. would be delayed as the company works to allay concerns of federal regulators by selling off Otezla, Celgene's anti-inflammatory drug that had global sales of $1.6 billion last year.

Bristol-Myers now expects to complete the deal at the end of this year or early 2020, the company said Monday. It had previously expected the merger to close in the third quarter of this year.

The company hopes the planned divestiture of Otezla will resolve the U.S. Federal Trade Commission's anticompetitive concerns about clearing the merger.

The divestiture came as a surprise to analysts, who said it was the latest signal that regulators are taking a tougher stance in their scrutiny of pharmaceutical industry mergers.

The delay appeared to create uncertainty among investors about the merger being completed, analysts said. Celgene's stock fell 5.5% to $93.47 Monday; shares of Bristol-Myers declined 7.4% to $45.68.

Brian Skorney, an R.W. Baird analyst, said Bristol-Myers's plan to divest itself of Otezla signaled the company had found a way to resolve the FTC's concerns and increased the probability of the deal closing.

"It's feedback on what the FTC wants, and it seems like this is the major thing to come from the FTC discussions," Mr. Skorney said in an interview.

Otezla is used to treat forms of psoriasis, a skin-disease in which an overreaction by the immune system causes itchy rashes to form on the body. Bristol doesn't currently sell psoriasis medicines, but has an experimental drug for the disease in late-stage trials.

Historically, antitrust regulators would only raise concerns about drugs in overlapping disease areas if both products were already on the market, Mr. Skorney said. That now appears to be changing.

Earlier this month, Roche Holding AG said the FTC had requested additional information regarding its planned takeover of Spark Therapeutics Inc.

Analysts speculated that the FTC's concerns were related to overlap between Roche's hemophilia treatment Hemlibra and an experimental gene therapy for the disease being developed by Spark.

"Both of these deals have gotten more scrutiny than people expected," said Mr. Skorney. "How does that impact how pharma acquirers look at deals going forward?"

Otezla was Celgene's third-largest drug by sales last year and represented about 10.6% of the company's total revenue.

It is uncertain how long the drug will retain market exclusivity; R.W. Baird estimates that it could lose patent protection after 2023. Otezla could fetch $6 billion to $10 billion in a sale, Mr. Skorney said.

Separately, New York-based Bristol Myers said Monday that its late-stage study of cancer immunotherapy Opdivo didn't meet the main goals in a study probing its use in a common liver cancer but showed an improvement in the overall survival of patients treated with the drug compared with Bayer AG's Nexavar, which is the current standard of treatment.

Kimberly Chin and Dave Sebastian contributed to this article.

Write to Joseph Walker at joseph.walker@wsj.com

Stocks mentioned in the article
ChangeLast1st jan.
BRISTOL-MYERS SQUIBB COMPANY -1.63% 43.33 Delayed Quote.-16.64%
CELGENE CORPORATION -0.78% 90.2 Delayed Quote.40.74%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on CELGENE CORPORATION
07/19CELGENE : Says FDA Approves Otezla for Oral Ulcers in Behcet's Disease
DJ
07/19CELGENE : FDA Approves OTEZLA® (apremilast) for the Treatment of Oral Ulcers Ass..
BU
07/16ZYMEWORKS : Says Celgene Selects Lead Oncology Therapeutic Candidate Under Colla..
DJ
07/01BRISTOL-MYERS SQUIBB COMPANY : Announces Extension of the Expiration Date for Ex..
AQ
06/26Facing Challenges, Firms Seek Deals -- WSJ
DJ
06/25GLOBAL MARKETS LIVE : AbbVie, Bristol-Myers Squibb, Linde, Amazon…
06/25CELGENE : Deal Faces Antitrust Delays
DJ
06/24BRISTOL MYERS SQUIBB : Myers, Celgene Shares Both Lower as Merger Faces Delays
DJ
06/24BRISTOL MYERS SQUIBB : Antitrust Concerns Delay Bristol-Myers' $74 Billion Merge..
DJ
06/24Bristol-Myers' Celgene Deal Can Still Be a Winner -- Heard on the Street
DJ
More news
Financials (USD)
Sales 2019 17 084 M
EBIT 2019 9 778 M
Net income 2019 6 598 M
Debt 2019 1 600 M
Yield 2019 -
P/E ratio 2019 10,4x
P/E ratio 2020 8,72x
EV / Sales2019 3,82x
EV / Sales2020 3,04x
Capitalization 63 614 M
Chart CELGENE CORPORATION
Duration : Period :
Celgene Corporation Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends CELGENE CORPORATION
Short TermMid-TermLong Term
TrendsBearishNeutralBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 20
Average target price 99,60  $
Last Close Price 90,20  $
Spread / Highest target 33,0%
Spread / Average Target 10,4%
Spread / Lowest Target -6,87%
EPS Revisions
Managers
NameTitle
Mark J. Alles Chairman, President, CEO & COO
David V. Elkins Chief Financial Officer & Executive Vice President
Joseph S. Camardo Senior Vice President-Global Medical Affairs
Jay T. Backstrom Chief Medical Officer
Rupert J. Vessey President-Research & Early Development
Sector and Competitors
1st jan.Capitalization (M$)
CELGENE CORPORATION40.74%63 614
JOHNSON & JOHNSON0.98%345 980
PFIZER-2.02%237 451
ROCHE HOLDING LTD.8.73%230 263
ROCHE HOLDING10.69%230 263
NOVARTIS24.78%216 273