Earnings, positive trial results, and rating changes dominated healthcare news on Thursday, with shares of Celgene, Pfizer, and Tenet Healthcare getting a move.
Celgene (NASDAQ:CELG): Current Price $97.49
Earlier this month, shares of Celgene were on the rise, and analysts at Jefferies, Stifel Nicolaus, and Piper Jaffray were all lifting their price targets. Piper Jaffray upgraded the biotech company to Overweight from Neutral and RBC upgraded its rating on Celgene to Outperform from Sector Perform, increasing its price target to $100 from $90. The slew of positives assessments were in response to Celgene’s updated guidance for the year. On January 7, the company said it expected income for 2012 to be at the higher end of its previous estimate.
But Celgene reported lackluster earnings results on Thursday, sending shares down close to 1 percent, below their 20-day, 50-day, and 100-day simple moving averages.
For the three-month period, the company’s net earnings fell 36 percent to $263.1 million, or 61 cents a share, as the result of restructuring and acquisition-related charges. However these additional expenses came as the company prepared to enter its “next phase of growth” with the launch of new treatments. And there is evidence of growth already: revenue for the quarter rose 13.3 percent to $1.45 billion thanks to strong sales of cancer drugs.
It appears that future growth will be strong as well, given Celgene’s drug pipeline. The company expects to file for regulatory approval of its arthritis drug Apremilast and Pomalyst, its treatment for multiple myeloma, this year.
The company forecast revenue of $6 billion for 2013.