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The Zacks Analyst Blog Highlights: Celgene, Amgen, Exelixis, Alexion and Vertex

Zacks Equity Research
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For Immediate Release

Chicago, IL – January 12, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Celgene, Inc. CELG, Amgen, Inc. AMGN, Exelixis, Inc. EXEL, Alexion Pharmaceuticals, Inc.’s ALXN and Vertex Pharmaceuticals Inc. VRTX.

Here are highlights from Thursday’s Analyst Blog:

Can Biotech Keep Last Year’s Momentum Alive?

The year 2017 has been better than expected for the biotech sector. The NASDAQ Biotechnology index was up 18.7% in 2017. While drug pricing issue, competition and a slowdown in growth of key drugs are expected to remain a hangover in 2018 as well, approval of new drugs and strategic acquisitions by several big wigs in 2017 are likely to boost investors’ sentiments. Thus 2018 needless to say, holds promise for generating stellar returns.

The slowdown in mature products compelled industry majors to undertake acquisitions to bolster pipelines. Gilead acquired erstwhile Kite Pharma and added Yescarta to its kitty. The company also inked an agreement to acquire Cell Design Labs. Gilead currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recently, Celgene, Inc. inked a deal to acquire Impact Biomedicines for an upfront amount of $1.1 billion. The acquisition will add a late-stage candidate, fedratinib, a highly selective JAK2 kinase inhibitor, to Celgene’s pipeline.  The candidate is being developed for the treatment of myelofibrosis and polycythemia vera. Celgene was on the look-out of new deals and acquisitions given a lackluster 2017, having suffered a few pipeline setbacks and weakness in Otezla sales. Celgene currently carries a Zacks Rank.

Acquisitions and mergers will keep investors focused in the space in 2018.  In addition, new drug approvals and label expansion of existing drugs will boost the top line of prominent biotech companies.

Amgen, Inc. looks poised for growth with several blockbuster drugs in its portfolio. Amgen’s new drugs — Prolia, Xgeva, Vectibix, Nplate and Sensipar — are performing well. The company recently won the FDA approval for the supplemental Biologics License Application (sBLA) of Xvega to expand the drug’s label for the treatment of multiple myeloma. Amgen carries a Zacks Rank #3.

Exelixis, Inc. is another biotech which looks poised for growth in 2018. The recent FDA approval of the label expansion of lead drug Cabometyx for the treatment previously untreated advanced renal cell carcinoma is expected to drive growth. The drug has performed impressively since approval in 2016. Exelixis currently carries a Zacks Rank #1.

Alexion Pharmaceuticals, Inc.’s blockbuster drug, Soliris, continues to perform well and the FDA approval of the drug for generalized myasthenia gravis will further boost sales. Among new products, while Strensiq is gaining momentum, the company redefined its strategy for Kanuma. Alexion carries a Zacks Rank #3.

Another big biotech, Vertex Pharmaceuticals Inc. is taking measures to strengthen its already dominant position in the cystic fibrosis market (CF). Vertex has two CF drugs — Kalydeco & Orkambi — in its portfolio with blockbuster potential.  The company has developed another CF corrector tezacaftor (VX-661) — in combination with ivacaftor.  Regulatory applications are under review in the United States (PDUFA Date: Feb 28, 2018) and the EU.  A potential approval would further bolster demand.  Vertex currently carries a Zacks Rank #1.

Medical - Biomedical and Genetics Industry 5YR % Return


While the threat of biosimilars loom large on key drugs of most companies, we expect investors to remain focused on this dynamic sector eying new drug approvals and important data read-outs.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancef or information about the performance numbers displayed in this press release.

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Alexion Pharmaceuticals, Inc. (ALXN) : Free Stock Analysis Report
Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report
Celgene Corporation (CELG) : Free Stock Analysis Report
Amgen Inc. (AMGN) : Free Stock Analysis Report
Exelixis, Inc. (EXEL) : Free Stock Analysis Report
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