Celgene Corp. (CELG) was once a biotech darling, with its stock rising by approximately 150 percent over the past five years. But the shares have fallen off a cliff in recent months, down by nearly 32 percent since October 19. The stock has been hit by multiple rounds of bad news regarding its drug pipeline amid concerns about its growth outlook.
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.”
Is Bristol Myers 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.
Why is Bristol Myers stock cheap?
The drug mix up 28 percent of revenue in the first half of 2021, the first half of Bristol Myers Squibb's overall revenue, so that's a big chunk that it's going to lose and that explains why Bristol Myers Squibb looks so cheap right now. It does have some pipeline candidates that could make up for the loss of Revlimid.
What did BMS acquire from Celgene?
By erasing one of the industry's most active partners, the $74 billion deal promises to shake up biotech for years to come. Love it or hate it, Bristol-Myers Squibb's purchase of Celgene set the tone for 2019, and promises to shake up the life sciences ecosystem for years to come.
Is Merck a buy Zacks?
- MRK - Stock Price Today - Zacks....(Delayed Data from NYSE)Zacks RankDefinitionAnnualized Return1Strong Buy25.08%2Buy18.56%3Hold10.15%4Sell5.79%2 more rows
Is Pfizer stock a buy Zacks?
Zacks' proprietary data indicates that Pfizer Inc. is currently rated as a Zacks Rank 3 and we are expecting an inline return from the PFE shares relative to the market in the next few months.
Is Bristol Myers Squibb a buy sell hold?
Bristol-Myers Squibb has received a consensus rating of Hold. The company's average rating score is 2.45, and is based on 6 buy ratings, 4 hold ratings, and 1 sell rating.
Is BMY undervalued?
That said, BMY stock looks undervalued at its current levels of $55. Going by our Bristol Myers Squibb Valuation of $79 per share, based on $7.52 expected adjusted EPS and around 10x P/E multiple for 2021, there is an upside potential of 45% from its current levels.
Is BBY a good stock to buy?
BBY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 13.72. This compares to its industry's average Forward P/E of 22.59. Over the last 12 months, BBY's Forward P/E has been as high as 16.78 and as low as 10.83, with a median of 13.51.
What drugs did Celgene make?
Products. As of 2019, Celgene focused on oncology and immunology. Cancer drugs include Revlimid (lenalidomide) and Pomalyst (pomalidomide) and the immunology drug Otezla (apremilast) accounted for around 90% of the company's total revenue as of 2019.
Who did Bristol Myers buy?
Turning Point Therapeutics(NASDAQ:TPTX) today announced a definitive merger agreement under which Bristol Myers Squibb will acquire Turning Point Therapeutics for $76.00 per share.
What does Bristol Myers make?
Bristol Myers Squibb manufactures prescription pharmaceuticals and biologics in several therapeutic areas, including cancer, HIV/AIDS, cardiovascular disease, diabetes, hepatitis, rheumatoid arthritis, and psychiatric disorders.
What happened
Shares of cancer-treating biopharmaceutical company Celgene (NASDAQ: CELG) sold off on Thursday, closing down 8.6% after yet another high-profile shareholder of Bristol-Myers Squibb (NYSE: BMY) -- the even bigger Big Pharma company that's trying to buy Celgene -- announced that it opposes Bristol-Myers going through with the deal.
So what
Wellington, the largest holder among the three firms named, owns only about 7.7% of Bristol-Myers stock, according to data from S&P Global Market Intelligence. Combined with Dodge & Cox's 2.6% stake, that's still barely 10% of Bristol-Myers' shares now on record opposing the sale -- not enough to scuttle the deal.
Now what
That being said, there's still six weeks to go before Bristol-Myers shareholders are scheduled to vote on this deal. With opposition continuing to mount and plenty of time to organize more opposition before April 12, it's impossible to totally discount the risk that this deal could fall through.
How much did Celgene pay upfront?
IMAGE SOURCE: GETTY IMAGES. The disappointment caused a sharp drop-off in Celgene's shares because Celgene had paid more than $700 million upfront for the drug, and it will now be forced to take up to $500 million in writedowns this quarter alone. On October 26, Celgene reported additional bad news when it released its third-quarter financials.
Is Bluebird Bio a CAR T?
Additionally, bluebird bio plans to update investors on its experimental CAR-T for use in multiple myeloma. Undeniably, question marks remain. The psoriasis market is more competitive than ever, and that could continue crimping demand for Otezla. There's also been pushback against Celgene for price increases on its best-selling drug, Revlimid.
Is Celgene's third quarter bad?
On October 26, Celgene reported additional bad news when it released its third-quarter financials. Weaker-than-anticipated growth for its psoriasis drug Otezla resulted in management reducing the high end of its sales guidance for the year. The company also cut its 2020 forecast to reflect GED-0301's failure and the slowdown in Otezla.
Who is Todd Eb?
In 2003, Todd founded E.B. Capital Markets, LLC, a research firm providing action oriented ideas to professional investors. Todd has provided insight to a variety of publications, including SmartMoney, Barron's, and CNN/fn. Follow @ebcapital
Growth Not All That Bad
Despite all the bad news around its growth outlook, analysts still expect Celgene's earnings to grow by nearly 13.7 percent in 2018 to $8.46 a share, and then accelerate to about 19.6 percent in 2019, and 19.5 percent in 2020.
Analyst Still See Forecast Higher Prices
Currently, 55 percent of analysts have a buy or outperform rating on the stock, while 45 percent have a hold or underperform rating. Still, the average price target on the stock is about $118.60, and that represents a 28 percent upside from the stock's current price of $92.60.
Risks Remain
But risk still remains, and not all are bullish on Celgene. In fact, some point to the significants risks stemming from the company's recent $16 billion spending spree .
The company could be about to get back on track following some high-profile stumbles
Todd has been helping buy side portfolio managers as an independent researcher for over a decade. In 2003, Todd founded E.B. Capital Markets, LLC, a research firm providing action oriented ideas to professional investors. Todd has provided insight to a variety of publications, including SmartMoney, Barron's, and CNN/fn. Follow @ebcapital
Why it's tumbled
Celgene has had a tough 12 months. The failure of a promising Crohn's disease drug in phase 3 trials and slowing sales growth for its psoriasis drug, Otezla, forced management to lower its long-term sales outlook for 2020 to at least $19 billion from $21 billion or more.
It's not all bad news
These stumbles have overshadowed what's been a very successful year in terms of growing revenue and boosting profitability.
Catalysts are coming
Celgene's solid quarterly performance has it guiding for $15.2 billion in revenue this year, up from $15 billion previously, and adjusted EPS of at least $8.75.
That's not all
In addition to those promising drugs, the company could file JCAR17 for approval in non-Hodgkin's lymphoma and other B-cell cancers in 2019, and it could win label expansions for its existing drugs, too.