Celgene (NASDAQ: CELG )
admittedly does not leap off the page as a cheap stock, at least not
with a cursory glance. The shares are up about 40% over the past year
(and more than 100% over the past two years) and trade at more than nine
times sales and 11 times book, not to mention more than 16 times
forward earnings.
Look closer, though, as this oncology-focused bio/pharma not only has
a deep early stage pipeline of oncology drugs, but meaningful label
expansion opportunities for approved drugs. Celgene is also preparing to
launch its first immunology drug and the Street's expectations are
quite a bit lower than those of management. A patent challenge to the
company's lead drug is definitely a serious matter, but the shares
appear undervalued even amid an ongoing bull market in the health care
space.
Continue here:
Is the Market Undervaluing Celgene?
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