Citi sees $25 to $58 incremental 1st line upside + psoriasis upside Mar 2 at AAD psoriasis
High Leverage to EPS Could Boost the Stock – We project that Revlimid sales in 1st line myeloma will have an 82% operating margin. Assuming 12-24 months treatment duration and 30%-50% market share, the potential boost to EPS can reach $3.31-$7.71. If we attribute a 10x multiple to 2016 EPS ests (the current multiple) discounted back by 10% to 2013, the potential boost to the stock is in the range of $25-$58 per share.
So we’re still sticking with Celgene as our TOP PICK LIVE, despite the stock having had a good move. And it’s really based on the expectation that the Apremilast Phase 3 data in psoriasis will provide upside surprise. And that data should be coming out as a late breaker or at the (AAD) meeting on March 2nd and then into the MM020 data which is going to be in early Q2.