The 3 Biotechs That Could Make Celgene Even Richer
July 10, 2017
By Mark Terry, BioSpace.com Breaking News Staff
Celgene is one of the dominant players in the biotech industry, noted not only for a strong portfolio of oncology drugs, but for numerous strategic partnerships. Currently, the New Jersey-based company has 47 partnerships and collaborations. Keith Speights, writing for The Motley Fool, examines three of those partnerships that could generate billions of dollars of revenue for Celgene.
1. Acceleron Pharma
Headquartered in Cambridge, Mass., Acceleron focuses on the TGF-beta protein, which is involved in cellular growth and repair. Its lead product, luspatercept (ACE-536), is being studied in two Phase III clinical trials in partnership with Celgene for chronic anemias in myelodysplastic syndromes (MDS) and beta-thalassemia.
Speights writes, “Celgene thinks that luspatercept could potentially gain regulatory approval in 2019 (most likely for beta thalassemia first, since the late-stage study targeting this indication completes earlier than the MDS study). If approved, the big biotech projects peak annual revenue of at least $2 billion. Acceleron stands to receive tiered double-digit royalties in addition to milestone payments.”
Acceleron are currently trading for $32.67.
2. Bluebird bio
Also based in Cambridge, Mass., Bluebird bio focuses on lentiviral-based gene therapies, T-cell immunotherapies and gene editing. Bluebird and Celgene started working together in 2013, then expanded their collaboration in 2015. In 2016, Celgene pulled the trigger on an option for bb2121, which has shown promise in a Phase I clinical trial for multiple myeloma.
Celgene is hoping bb2121 can be approved by 2020, although it’s a long road from a promising Phase I to a successful Phase III and regulatory approval. If approved, Celgene expects $1 billion-plus in annual revenue, although BMO Capital’s analyst, Matthew Luchini, has projected peak sales of $3.6 billion for the drug.
Bluebird Bio are currently trading for $99.80.
3. Juno Therapeutics
Located in Seattle, Juno is an immuno-oncology company focused on CAR-T therapies. The company got banged up a bit in April when it announced it was killing its lead CAR-T oncology program, JCAR016, because of patient deaths. However, it seemed to come back swinging with positive interim data from another CAR-T program, JCAR017, which it presented at the ASCO meeting in June.
Celgene and Juno hooked up in 2015 to develop several of Juno’s pipeline candidates. Celgene also acquired approximately 9.1 million shares of Juno stock.
JCAR017 isn’t completely beyond concerns over patient safety, but the company feels it has a handle on the issues that plagued JCAR016. If JCAR017 is approved, which is possible by 2019, peak annual sales could exceed $1 billion.
Juno Therapeutics are currently trading for $29.11.
Speights notes that, “If we combine all three of these experimental drugs, Celgene could be looking at additional annual revenue of more than $4 billion in the next decade. That’s more than Celgene’s four top-selling drugs after Revlimid currently make.”
Of course, it’s possible that they won’t all be approved. Or that none of them will be approved. Because Acceleron’s candidate is in late-stage trials, it has the best odds, and Juno’s JCAR017, which carries the weight of earlier product failures, may be the riskiest. And, naturally, with 47 ongoing collaborations and partnerships, something is likely to take hold in the future.
Celgene are currently trading for $132.56.