Introduction
Celgene (CELG) is back to 2014 levels, closing Friday at $96.14. It first reached this price in August 2014. Yet I just want to sit with it. Even with CELG down to safer valuations, among non-dividend-paying biotechs, I currently prefer Regeneron (REGN) at $333 and Vertex (VRTX) at $161. These companies mostly do internal product development rather than lots of M&A activity and have more focused pipelines than CELG.
They also are more conservative in discussing their pipeline and avoid making multi-year projections as CELG continues to do.
In this article, I'd like to discuss a recent example of what I see as undue aggressiveness on CELG's part, and then tie it to a brief, updated view of CELG as an investment I'm staying neutral on. Then a brief discussion of where I see the biotech sector (IBB) right now builds on the prior points.
