$56.98
0.45 (+0.80%)
Celgene Corp (CELG)
CAPS Rating:
A biopharmaceutical company primarily engaged in the discovery, development and commercialization of innovative therapies designed to treat cancer and immune-inflammatory related diseases.
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Just as Obama enthusiasm for stem cell stocks is senseless, Obama pessimism for pharmaceuticals is overblown. I don't believe his policies will fundamentally change the business model or profitability of mid-to-large cap biotechs, and I see this as another opportunity to green thumb some quality companies at depressed prices.
Agreed. Obama is talking about opening up Generic competition for BioTech companies, using the same 20 year patent protection system the pharma. industry has. I believe this is a case of the street throwing the baby out with the bathwater. Celgene's growth is driven by two blockbuster drugs, Revlimid and Vidaza whom grew at a respective rate of 49 and 56 percent year over year. Suppose Obama does allow for generic competition based on 20 year patent rules. Vidaza and Revlimid are protected until 2024 and 2026 respectively. The question is weather or not the proposed patent changes justify the 20% decline in stock price over the past five days. Or is this another case of the market throwing the baby out with the bath water? I'm betting on the later.