And here's the reason for the nice run. NEJM will be upset, as they don't like advanced leaks of what they are publishing.
Headline: Celgene Shares Climb On Expected Positive Cancer-Drug Report
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NEW YORK -(Dow Jones)- Shares of Celgene Corp. rose Wednesday on
expectations a study showing the effectiveness of its Thalomid drug in
treating cancer will be published in Friday's edition of the New England
Journal Of Medicine.
Celgene (CELG) shares stood at $45.375, up $4.25 or 10%, on volume of
340,000 shares, about its daily average.
People close to the Warren, N.J. company expect the medical journal
to publish a study showing the effectiveness of Thalomid in treating
multiple myeloma, a blood-related cancer. The company didn't immediately
return a phone call seeking comment.
According to Steve Brozak, a biotech analyst with Vanguard Capital,
some 14,000 new cases of multiple myeloma are reported each year in the
U.S. and about 12,000 people die from the disease.
Results of the anticipated study, conducted by Dr. Bart Barlogie of
the University of Arkansas, are expected to contribute to increased
sales of Thalomid, which Brozak expects will total $23 million this year
and at least $100 million next year.
The drug - formerly sold overseas under the name Thalidomide to treat
morning sickness - gained U.S. approval last October to treat lesions
related to leprosy but has been overwhelmingly prescribed to cancer and
AIDS patients.
Analysts said Barlogie has made several presentations on Thalomid
over the last year. That includes one at a Nov. 4 meeting on
chemotherapy in New York, the same day the company's shares rose nearly
12%.
"He was visibly excited about the potential for multiple myeloma with
Thalidomide," Brozak said.
Celgene also told analysts on a November conference call that it
expected the study to be released sometime in November, said Prudential
Vector Healthcare Group analyst Caroline Copithorne.
Celgene's stock has run up from an October price of $26 on what
analysts call enthusiasm about various reported and upcoming Thalomid
studies in a range of therapeutic areas.
In a research note issued earlier Wednesday, Copithorne highlighted
data from three small clinical trials of Thalomid presented at a
rheumatology meeting in Boston. All of the trials suggest clinical
benefit, she said.
Copithorne expects Celgene will remain in the spotlight with upcoming
Thalomid presentations including one at a hematology meeting in
December. Her 12-month price target is $54.
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