Celgene Corporation (CELG) is diversifying its revenue stream by utilizing three other drugs in its pipeline, and CELG could see up to a $1.5 billion opportunity in Abraxane, a drug that recently received FDA approval for nonsmall cell lung cancer, says Ian Somaiya, Managing Director and Senior Research Analyst at Piper Jaffray & Co.
“The focus has always been on their lead drug Revlimid, with the company getting very little credit for three drugs they are either in the process of launching or expanding their label…Pomalidomide for myeloma was launched earlier this year; Abraxane, which received FDA approval for nonsmall cell lung cancer last year. And while we saw positive pancreatic cancer data earlier this year, where that translates into a much larger market opportunity for that drug going from 300 million or it’s hovering on today, so what could ultimately be a $1 billion to $1.5 billion opportunity over the next five to seven years,” Somaiya said.
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Celgene is also focusing on Apremilast, an oral drug for psoriasis and psoriatic arthritis that is more tolerable for patients and will drive a lot of interest in earlier-stage patients as well as doctors, who will be more comfortable with the safety profile of the drug, Somaiya says.
“Its safety profile is benign, and it will enable patients to tolerate the drug, so those patients that respond will stay on the drug for many, many years. And that’s going to drive a lot of interest in the drug, at least use of that drug in earlier-stage patients, the patients who are not on biologics today, which represent — about 25% of psoriasis patients are on biologics today, but the drug is used on the other 75% of patients where the biologic use has been absent,” Somaiya said.
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