Is It Time to Buy Celgene Stock?

TL;DR

Celgene, a major biotech company, is trading at a discounted price due to some temporary setbacks, but has a strong pipeline of potential blockbuster drugs.

Transcript

Shannon Jones: Turning our attention to the last stock, this has been one of my favorites. It's rare, Todd, to have a large-cap biotech player go on sale. One of my favorites is Celgene, ticker CELG. Many large-cap biotech companies right now are ridiculously cheap. Celgene is actually down 33% on the year, for some reasons which are very much warr... Read More

Key Insights

• ™️ Celgene's stock is currently trading at a discounted price compared to other major biotech players.
• 😀 The company faced significant setbacks with Phase III failures and an FDA refuse to file notice.
• 🪛 Generic competition for Celgene's main revenue driver, Revlimid, is a major concern.
• ❓ Celgene has a promising pipeline, including potential blockbuster drugs like bb21217, Ozanimod, and Fedratinib.
• 📰 The upcoming ASH conference could provide important insights and news for Celgene's future.
• 🤨 Experts see Celgene's growth potential despite the challenges, with the company continually raising its full-year guidance.
• ⏳ Celgene's current stock price reflects its all-time lows, presenting a potential opportunity for investors.

Questions & Answers

Q: What are some reasons behind Celgene's stock drop?

Celgene experienced a Phase III failure and a refuse to file notice from the FDA for one of its highly anticipated assets. These setbacks led to a significant decline in stock value.

Q: How has Celgene managed the impending generic competition for Revlimid?

Celgene structured an agreement with Natco Pharma to limit their volume, ensuring that they have no incentive to offer discounts. However, other generic competitors like Mylan and Dr. Reddy's Laboratories pose a challenge.

Q: What potential developments are expected from Celgene in the near future?

Celgene has several drugs in its pipeline, including bb21217, the successor to Revlimid, which could be presented at the upcoming ASH conference. The company also plans to launch five new drugs over the next few years, including Ozanimod for multiple sclerosis and Fedratinib for myelofibrosis.

Q: How confident are the experts in Celgene's future success?

Despite the setbacks, experts believe Celgene has a strong pipeline and potential for growth. They consider it a core holding and see a path to reaching $20 billion in revenue and beyond.

Summary & Key Takeaways

• Celgene's stock has dropped 33% this year and is currently trading at $69 a share, making it an attractive option compared to other biotech players.

• The company faced failures in Phase III studies and received a refuse to file notice from the FDA, causing setbacks and embarrassment.

• The impending generic competition for Celgene's main revenue driver, Revlimid, is a major concern.