Celgene Corporation (CELG), Bristol-Myers Squibb Co (BMY): One Drug Dramatically Reshaping Pancreatic Cancer Treatment

Abraxane’s pancreatic cancer opportunity
Last November, Celgene reported that Abraxane when combined with current go-to pancreatic cancer drug gemcitabine significantly improved pancreatic cancer survival rates. Gemcitabine was previously sold by Eli Lilly & Co. (NYSE:LLY) as the blockbuster drug Gemzar prior to patent expiration and is now sold by generic manufacturers, including Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA).

In Celgene’s MPACT phase 3 study, Abraxane, coupled with gemcitabine, increased overall survival to 8.5 months, versus 6.7 months for gemcitabine alone. Progression-free survival was 5.5 months, compared to 3.7 months for gemcitabine.

Those results prompted Celgene to file a supplemental NDA with the FDA for the indication earlier this year. The FDA granted the application priority review status and approved the drug less than a year after Celgene presenting the data last fall. The company also has a filing pending for approval in Europe for the disease.

Importantly, the FDA approved Abraxane as a first-line treatment for pancreatic cancer, and the patient pool approved represents 95% of cancers of the pancreas.

The final take
Celgene already has a blockbuster in Revlimid, and Abraxane may have billion dollar potential. The drug’s winning ways may not be over given that the company is studying Abraxane as a treatment for metastatic melanoma.

In phase 3 data presented last November at the Society of Melanoma Research meeting, progression-free survival on Abraxane was 4.8 months versus 2.5 months for patients on dacarabzine. If the drug eventually gets approval for this indication, it will compete with Bristol-Myers Squibb Co (NYSE:BMY)’ Yervoy and Roche‘s Zelboraf. That could be another big market for Abraxane given that Yervoy generated $233 million in sales during Q2 and Zelboraf had sales of $245 million in 2012.

In the meantime, non-small-cell lung cancer and pancreatic cancer approvals offer significant revenue growth given Abraxane’s $6,000-$8,000 a month price tag.  Knowing the unmet need Abraxane addresses and the margin friendly pricing, you may find that Celgene’s tailwinds make it a profit-friendly investment over the coming year.

The article 1 Drug Dramatically Reshaping Pancreatic Cancer Treatment originally appeared on Fool.com and is written by Todd Campbell.

Todd Campbell has no position in any stocks mentioned. The Motley Fool recommends Celgene. 

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