The third reason behind Celgene's low valuation is a potential threat to the biotech's top drug Revlimid. Celgene is fighting a patent challenge over Revlimid from Dr. Reddy's Laboratories (RDY 1.67%). The hematology drug currently generates 63% of Celgene's total revenue.
Is BMY a good stock to buy?
Bristol-Myers has multiple top-selling drugs in its portfolio that generate billions in revenue. The company is a money-making machine that could bring in $50 billion in free cash over the next few years. Its low valuation and high dividend yield make it an all-around safe stock to just buy and hold.
What happened Celgene stock?
Celgene common stock ceased trading as of the close of trading today. On November 21, 2019, newly issued Bristol-Myers Squibb shares and CVRs will commence trading on the New York Stock Exchange, with the CVRs trading under the symbol “BMYRT.”
Can I still buy Celgene stock?
It's not too late to buy Celgene stock at all -- as long as you hold on to the Bristol-Myers Squibb stock you get when the acquisition closes.
Is Celgene a publicly traded company?
Celgene became a subsidiary of BMS and is no longer a publicly traded company on its own.
What happens to Celgene stock after merger?
Pursuant to the terms of the merger agreement, for each share of Celgene stock, Celgene shareholders received one share of Bristol-Myers Squibb stock along with $50 in cash and one tradeable contingent value right which will entitle the holder to receive a payment of $9.00 in cash if certain future regulatory ...
Why did BMS acquire Celgene?
Bristol-Myers Squibb to Acquire Celgene to Create a Premier Innovative Biopharma Company. Category: Corporate/Financial News.
What happened to Bristol Myers contingent value rights?
Because BMY failed to obtain timely FDA approval for one of those drugs by its target date at the end of 2020—the cancer drug Liso-cel—the company was able to avoid the entire payout to CVR holders, which was estimated to be around $7.4 billion.
What happened to Celgene CVR?
For CVR holders: Because the milestone of approval of liso-cel by December 31, 2020 was not met, the CVR agreement has automatically terminated in accordance with its terms, the security will no longer trade on the NYSE, and the CVRs are no longer eligible for payment.
How much did Bristol Myers pay for Celgene?
$74 billionThe moves follow Bristol Myers Squibb's massive 2019 purchase of Celgene for $74 billion—a deal that hasn't always worked out smoothly for investors, especially on the Celgene side of things.
Is Celgene now BMS?
NEW YORK--(BUSINESS WIRE)--Bristol-Myers Squibb Company (NYSE:BMY) announced today that it has completed its acquisition of Celgene Corporation (NASDAQ:CELG) following the receipt of regulatory approval from all government authorities required by the merger agreement and, as announced on April 12, 2019, approval by ...
What is Celgene known for?
Celgene Corporation is a pharmaceutical company that makes cancer and immunology drugs. Its major product is Revlimid (lenalidomide), which is used in the treatment of multiple myeloma, and also in certain anemias.
Who manufactures Revlimid?
Bristol Myers Squibb's Revlimid finally faces competition in the U.S. with Teva's generic launch. Sales of Bristol Myers Squibb's Revlimid crescendoed at $12.8 billion in 2021, the final year of exclusivity for the multiple myeloma treatment.
How much cash does Celgene have?
Celgene generated a solid free cash flow of more than $3 billion in the past 12 months. The company had nearly $8.9 billion in cash (including cash, cash equivalents, and marketable securities) at its disposal at the end of the first quarter of 2017. But it's how Celgene uses its capital that makes the stock one to hold for the long term.
Does Celgene have a blood cancer drug?
When it comes to several blood cancer indications, no other company comes close to matching Celgene's market position. The biotech's immunomodulatory imide (iMiD) drugs, particularly Revlimid and Pomalyst, are leading treatments for multiple myeloma and myelodysplastic syndromes (MDS). In addition, Celgene's Vidaza is used to treat MDS. Celgene also claims a stake in the markets for two other blood cancers, acute myeloid leukemia (AML) and mantle cell lymphoma.
Does Celgene have a research and development team?
Celgene doesn't just have a research and development team, it has an R&D ecosystem. The biotech is working on developing plenty of drugs on its own, but it has teamed up with many other companies as well. The following chart shows just how extensive this ecosystem is.
Revlimid-Dependent
Celgene has become dependent on the success of Revlimid, a blood cancer drug. In the third quarter of 2017, Revlimid accounted for nearly $2.1 billion in sales, out of Celgene's total sales of almost $3.3 billion. Revlimid 3Q sales represented nearly 64 percent of Celgene's total revenue.
Stock Price Takes A Big Hit
The chart above shows how analyst consensus revenue estimates for 2018 and 2019 have been reduced by about 4 and 6 percent, respectively, since the negative news hit the stock in late October. Yet Celgene's stock price has fallen by nearly 22.5 percent since then.
Favorable Deal Structure
The deal structure is favorable to Celgene, with a commitment of only $1.1 billion in upfront payments, another $1.25 billion in payments should the drug fedratinib receive approval milestones, and up to $4.5 billion should the drug reach global annual sales of $5 billion.
Domination in Blood Cancer Indications
Research and Development Ecosystem
- Celgene doesn't just have a research and development team, it has an R&D ecosystem. The biotech is working on developing plenty of drugs on its own, but it has teamed up with many other companies as well. The following chart shows just how extensive this ecosystem is. Celgene's collaboration partners include many up-and-coming biotechs. Experimental multiple myeloma dr…
Wise Use of Capital
- Celgene generated a solid free cash flow of more than $3 billion in the past 12 months. The company had nearly $8.9 billion in cash (including cash, cash equivalents, and marketable securities) at its disposal at the end of the first quarter of 2017. But it's how Celgene uses its capital that makes the stock one to hold for the long term. Rather th...
Never Say Never?
- Never is a strong word. Even legendary investor Warren Buffett, who firmly subscribes to the concept of buying and holding for the long run, sells some of his stock holdings when conditions change. There's always the possibility that something could happen (for example, a change in management) that leads the company down a path where the stock is no longer a good investm…