Celgene Corporation is off to an incredibly strong start to the trading session this morning and for good reason. The company announced that it has entered into an agreement with Lannett Company, which is causing excitement among investors and sending the stock toward the top. Today, we’ll talk about what we’re seeing from both CELG and LCI, the agreement that was signed, and what we’ll be watching for moving forward.
What We’re Seeing From CELG And LCI
As mentioned above, Celgene Corporation is having a strong day in the market today after the company announced that it has entered into an agreement with Lannett Company, another stock that is doing pretty well. Currently (11:11), CELG is trading at $99.87 per share after a gain of $1.70 per share (1.73%) while LCI is trading at $22.65 per share after a gain of $0.12 per share (0.55%) thus far today.
Celgene Corporation Enters Into An Agreement With Lannet Company
Now, we get to the agreement. Earlier this morning, CELG and LCI made a joint announcement informing investors that they have entered into a settlement and license agreement. This agreement will resolve the patent dispute between the two with relation to the thalidomide product by CELG.
According to the terms of the agreement, LCI will be permitted to manufacture and market a generic thalidomide product in the United States starting on August 1, 2019, or earlier under certain circumstances. Currently, the company has an application under review with the FDA for the generic version of the treatment under four different dosage strengths. CELG and LCI have agreed not to disclose the other terms of the agreement.
Currently, Celgene Corporation has approval from the FDA to market Thalomid as part of a combination therapy for patients with newly diagnosed multiple Myeloma as well as a treatment for an inflammatory skin disorder caused by leprosy. The active ingredient in the treatment is thalidomide, the drug that Lannett Company is working to get approved as a generic.
Ultimately, Thalomid is an incredibly important treatment for CELG, as in the year 2016 alone, it generated sales in the amount of $21.7 million. In a statement, Arthur Bedrosian, CEO At LCI, had the following to offer:
“I congratulate my staff and colleagues for showing the courage and resolve in successfully tackling such a complex project as thalidomide… We believe our thalidomide will be the first entrant in the U.S. generic market.”
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on both CELG and LCI. In particular, we’re interested in following the sales of Thalomid leading up to and following Lannett’s ability to start marketing their generic version of the treatment. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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