Wednesday, January 13, 2016

Seeking Alpha: Celldex Therapeutics Down, But Definitely Not Out

It's been a rough six months for biotech in general, but Celldex (NASDAQ:CLDX) has been hit worse than most. The shares are down almost 50% over the six months that have passed since I last wrote about the company. Given the large move down after the company announced it wouldn't be pursuing early approval for Rintega, it's clear that investors were disappointed they'd have to wait at least a year longer to see the drug hit the market. I also wonder if some investors starting feeling some "immuno-oncology fatigue" and began worrying that some of Celldex's approaches (including a cancer vaccine and an ADC) might be out of step with the hotter prospects in the developing IO field.

This plunge in the share price looks like an opportunity. It certainly may be true that the biotech boom is over, and that valuations across the sector are going to come under even more pressure. Outside of that, though, I believe Celldex has a solid, deep, and undervalued pipeline that could generate well over $1 billion in annual revenue down the road.

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Celldex Therapeutics Down, But Definitely Not Out

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