Merrill raises Celgene's price target to $78

Celgene Corp. was reiterated by Merrill Lynch analyst Thomas McGahren at a buy rating and the price target was raised to $78 from $65 after the FDA approved Revlimid for the treatment of myelodysplastic syndrome in patients with the 5Q- chromosomal abnormality ahead of the Jan. 7 PDUFA date. The price target increase is mainly due to reduced regulatory risk and modest increases to Revlimid and earnings per share estimates, Merrill said. Revlimid was approved on the basis of positive phase 2 data showing that nearly two-thirds of transfusion-dependent patients with MDS 5Q- became transfusion independent. Revlimid is expected to launch early in the first quarter of 2006. On Dec. 28, shares of the Summit, N.J., biotechnology company were up $3.37, or 5.86%, at $60.85 on volume of 16,136,970 shares versus the three-month running average of 2,245,500 shares.

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