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Celgene (CELG): what causing the price drop?

2:39 pm ET, 21 May 2018

Celgene is down another 5% today.   What's driving the stock price 'free fall'? What's the CELG stock price forecast?  

The news today is that Celgene's (CELG) business development head George Golumbeski ended his nine-year stint at the company.  His departure was the latest in a management shakeup led by Mark Alles, the CEO. 

The company is highly dependent on Revlimid for growth. It faces stiff competition due to the presence of several companies in its target markets.

Celgene’s stock has lost 27% of its value in the last six months compared to the industry’s ~10% decline. The failure of the RELEVANCE study hit the stock. The stock was also hit earlier after a phase III trial, REVOLVE, (CD-002) on the candidate GED-0301 in Crohn’s disease and the extension trial, SUSTAIN (CD-004), was discontinued. 

Celgene suffered yet another setback when it received Refusal to File letter from the FDA regarding its New Drug Application (“NDA”) for multiple sclerosis candidate ozanimod. The key issues for the refusal to file centered on the completeness of the clinical pharmacology and the non-clinical portions of the NDA. The candidate is being developed for the treatment of patients with relapsing forms of multiple sclerosis. 

While Revlimid sales continue to be impressive, the company’s depends on it for growth. Lower-than-expected sales of the drug could adversely impact the company’s growth prospects.

The analysts are still bullish on Celgene.  Per Finstead, price target upside is 66.73% (visit Finstead and type "CELG price target upside").  For the latest news on Celgene, enter "CELG news" on Finstead).  

Top 6 Biotech Stocks For Traders

1:48 am ET, 08 Jan 2018

biotech

Biotech stocks are a risky business—certainly not suitable for retirement investing.  If you’re up for some speculative biotech trades, we are presenting the top 6 among our freshest picks of biotech stocks for the coming 12 months. 

Incyte (INCY)

Now is a good entry point for this drugs development and sales firm. Stocks recently hit a 52-week low. The pipeline of products includes profitable Jakafi for treating bone marrow disorder. 

Alexion Pharmaceuticals (ALXN)

A global biotech firm with a strong balance sheet and new drugs in development. Specializes in life-changing therapies for patients affected by rare diseases. 

Celgene Corporation (CELG)

A stable company showing steady growth in revenue in recent quarters in this high-risk sector. Celgene specializes in cancer and inflammatory diseases, developing its own drugs and collaborating with other large drug producers. Good investing opportunity thanks to a sharp stock decline of over 30% in October 2017. 

Gilead Sciences, Inc. (GILD)

Gilead is a leader in HIV treatment, with a successful hepatitis C product, and is growing steadily around 30% in the last five years. Revenues and operating profit have both increased over 4 years. 

Enzo Biochem, Inc. (ENZ)

Enzo offers a range of therapies that include cardiovascular and infectious diseases plus diabetes and cancer. Its stocks have been on an upward trend since March 2016, forming several new bases since then. 

Vertex Pharmaceuticals (VRTX)

Vertex focuses on cystic fibrosis treatments, and its growth prospects lie in its pipeline. Analysts are excited about its growth prospects, with predictions way ahead of other biotech firms. Vertex has the potential to grow its earnings by 65% annually in the next few years. 

Over the last year, INCY returned -4.90%. This return is lower than Biotechnology sector (78.04%), Healthcare industry (50.71%), and S&P 500 (20.90%) returns.

Over the last year, ALXN returned -11.93%. This return is lower than Biotechnology sector (78.04%), Healthcare industry (50.71%), and S&P 500 (20.90%) returns.

Over the last year, CELG returned -11.70%. This return is lower than Biotechnology sector (78.04%), Healthcare industry (50.71%), and S&P 500 (20.90%) returns.

Over the last year, GILD returned -2.28%. This return is lower than Biotechnology sector (78.04%), Healthcare industry (50.71%), and S&P 500 (20.90%) returns.

Over the last year, ENZ returned +18.10%. This return is lower than Medical Laboratories & Research sector (22.24%), Healthcare industry (46.89%), and S&P 500 (20.90%) returns.

Over the last year, VRTX returned +96.93%. This return is higher than Biotechnology sector (78.04%), Healthcare industry (50.71%), and S&P 500 (20.90%) returns.

Celgene Corporation (CELG) Stock Guide

Updated at: 12:16 pm ET, 13 Nov 2020

Before we start: if you're looking for CELG stock price, you can quickly find it out by visiting Finny and typing "CELG quote". If you're looking for a quick scoop on CELG stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "CELG". You'll get all this info in one place. Or you can just type "CELG news" to get the latest stock news.

Looking to buy or sell Celgene Corporation (CELG)? Interested in getting the full scoop on CELG, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this CELG stock guide, we'll address key questions about CELG, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. CELG buy or sell? What is CELG Finny Score?
2. What are the reasons to buy CELG? Why should I buy CELG stock?
3. What are the reasons to sell CELG? Why should I sell CELG stock?
4. What are CELG key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Analysis

1. CELG buy or sell? What is CELG Finny Score?

#{finnyScore:null}Our quantitative analysis shows 1 reason to buy and 1 reason to sell CELG. CELG doesn’t have an assigned Finny Score, because we don’t have sufficient data points to score the stock.

2. What are the reasons to buy CELG? Why should I buy CELG stock?

Here are the reasons to buy CELG stock:

  • Revlimid continues to generate impressive data in approved and potential new indications, and growth should be bolstered by expanded duration of use and novel combinations.
  • Celgene's acquisitions contribute to its positive moat trend. Pharmion solidified Celgene's strategic focus on blood-related cancer therapies, Abraxis moves the firm into the broader oncology market, and Receptos and Nogra build more immunology exposure.
  • Celgene's pipeline has produced new products beyond Revlimid; the firm launched multiple myeloma drug Pomalyst in 2013 and oral immunology drug Otezla in 2014.
  • CELG profitability is improving. The YoY profit margin change was 3.87 percentage points. See CELG profitability chart.

3. What are the reasons to sell CELG? Why should I sell CELG stock?

Let's look at the reasons to sell CELG stock (i.e., the bear case):

  • Revlimid side effects delayed first-line and maintenance setting approval in Europe, and the drug's expansion into lymphoma looks less certain.
  • Takeda and J&J's Velcade vies with Revlimid in the first-line setting, and while combination of the two therapies is effective, cost may become an increasing issue as Velcade's patents expire (2017 U.S. and 2019 Europe).
  • Despite efforts to diversify in oncology and immunology, we think Revlimid will remain close to 50% of Celgene's sales when generics begin to launch, setting the firm up for a massive patent cliff.
  • CELG stock price ($108.24) is close to the 52-week high ($110.41). Perhaps now is a good time to sell? See CELG price chart.

Key Stats

4. What are CELG key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for CELG:

Metrics CELG
Price $108.30
Average Price Target / Upside N/A
Average Analyst Rating N/A
Forward Dividend Yield 0.00%
Industry Drug Manufacturers - Major
Sector Healthcare
Number of Employees 8,852
Market Cap $00
Forward P/E Ratio N/A
Price/Book Ratio N/A
Revenue (TTM) N/A
YoY Quarterly Revenue Growth N/A
Profit Margin N/A

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