Celgene Corporation (NASDAQ:CELG) and Acceleron Pharma Inc (NASDAQ:XLRN) joined forces to develop a blood disorder drug and their collaboration seems to have paid off.
The biotechs both saw shares jump after positive results from a trial of their blood disorder drug.
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The Phase 3 double-blind study found that the drug Luspatercept was able to lower the rate of transfusions needed in patients with transfusion-dependent beta-thalassemia, a type of inherited blood disorder where abnormal hemoglobin production leads to anemia.
"For decades, the management of beta-thalassemia in adults has been limited to transfusions and iron chelation. Reduction of transfusion burden represents an important step forward for patients with this rare and debilitating blood disease," said Jay Backstrom, chief medical officer for Celgene, in a press statement.
Celegene shines on its own
While collaboration worked well for the company, its own drugs can stand on their own two feet as well.
The New Jersey-based biotech reported positive results in its late-stage trial of a treatment for breast cancer, seeing a reduced risk of the disease worsening or death.
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In a trial of more than 900 patients, the double-blind study looked at the drug combination of TECENTRIQ plus ABRAXANE in triple negative breast cancer.
An estimated 266,000 American women are diagnosed with invasive breast cancer annually, according to the American Cancer Society.
Between 10% to 20% of breast cancers fall into the triple negative breast cancer category, a type that can be difficult to treat as it is not sensitive to hormone therapy.
An analyst weighs in
Oppenheimer analysts had expected positive results from the study and the data supported that prediction.
Analyst Leah Rush Cann stated that the biotech has a “favorable risk-reward trade-off” at its current stock price.
Cann estimated total revenue to grow at a compound annual growth rate of nearly 16% to US$26.9bn in 2022.
The analyst maintained a Buy rating on the shares with a price target of US$163.
Shares of the Celgene were up slightly to US$84.57 in Tuesday afternoon trading while shares of Acceleron were up more than 2% to US$48.38.
--Updated to add analyst commentary, updated share price--
Contact Lenore Fedow at lenore@proactiveinvestors.com
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