Why Investors Should Love Celgene Corporation (CELG)’s Apremilast

Page 1 of 2

Celgene Corporation (NASDAQ:CELG) shareholders didn’t have to wait long for good news in 2013. On Jan. 7, the company announced positive results for two phase 3 studies of apremilast in treating psoriasis. Is apremilast really that big of a deal for Celgene investors? You bet. Here’s why.

All in the family
The clinical success of apremilast is yet another feather in the cap of Celgene’s research and development. It also reflects a continuation of the company’s long history with its granddaddy of drugs, Thalomid. While Thalomid certainly had its ups and downs over nearly 60 years, Celgene’s research with analogs of the drug paid off tremendously with Revlimid, Pomalyst, and now apremilast.

Celgene Corporation (NASDAQ:CELG)Despite being in the same family tree as the other drugs, apremilast works quite differently. It also belongs to another family of drugs called phosphodiesterase type 4, or PDE4, inhibitors. These drugs block the enzyme PDE4, which breaks down cyclic adenosine monophosphate, or cAMP. The problem with this is that cAMP is important in extracellular signaling known as signal transduction. In a nutshell, too much of a breakdown in cAMP by these PDE4 enzymes means that the human body isn’t a happy camper.

PDE4 inhibitors have shown potential for treating a variety of indications, including chronic obstructive pulmonary disease, asthma, depression, Alzheimer’s disease, and Parkinson’s disease. Celgene Corporation (NASDAQ:CELG)’s focus with apremilast, though, has been on treating inflammatory conditions. Apremilast increases cAMP levels, which then reduces inflammatory responses in cells.

Why investors should love it
So, why should investors love apremilast? Let us count the ways.

Celgene’s first New Drug Application, or NDA, for apremilast will be for psoriatic arthritis. The company expects to submit that NDA in the first quarter, followed by another for psoriasis in the second half of 2013. A combined Marketing Authorization Application, or MAA, for both indications will be submitted in Europe also in the second half of the year.

Psoriatic arthritis and psoriasis present a significant market potential. As many as 125 million people across the world have psoriasis, including up to 7.5 million Americans. Between 10% and 30% of those individuals also develop psoriatic arthritis.

Of course, this huge market already has several major drugs in the mix. AbbVie Inc (NYSE:ABBV)‘s Humira currently stands as the biggest player, followed by Enbrel from Amgen, Inc. (NASDAQ:AMGN) and Pfizer Inc. (NYSE:PFE) and two drugs from Johnson & Johnson (NYSE:JNJ): Remicade and Simponi. Can Celgene realistically expect to compete against these biologic juggernauts? I think it can.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!