Meanwhile, Biotech Giant Celgene is Getting Destroyed

Anyone interested in one of the world’s largest and most successful biotech companies getting tossed into the sewers? Anyone?

Celgene had plans, scheming all around in those laboratories, producing a wonderful revenues arc.

Look where that got them.

Here’s the short of it.

Reports Q4 revenue miss; lowers FY17 revenue slightly below consensus; lowers 2020 long-term financial targets following GED-0301 setback.

Mizuho is optimistic.

Mizuho finds it encouraging that management was forthright in admitting where it made mistakes in its projections and saying that GED-301 caused the company to “take pause” and assess risks where it may not have previously in its 2020 guidance. They believe there will be a rebuilding process with investors in the months to come to pave the path forward and restore confidence / credibility, but today was a good first step. They are in the process up updating their model / PT, but they note that CELG has essentially retraced all its gains in the last 12 months. Their thinking is here that momentum players have exited the stock (if not all, then mostly), and this stock is now one for value investors to relook at.

But even with this sudden drop, the shares aren’t cheap, trading 44x earnings and 9x sales. Back in 2012, the shares traded 6.3x sales, according to Exodus.

The stock is down nearly 40% from the highs with no stop in sight.