3 Biotech Stocks That Look Like Apple Did in the 1980s
June 22, 2017
By Mark Terry, BioSpace.com Breaking News Staff
What investor wouldn’t like to have gotten in on Apple just before it exploded in the 1980s? David Saito-Chung, writing for Investor’s Business Daily, examines three biotech stocks that have had recent action similar to Apple’s in the mid-200s and early part of the 2010s.
1. Celgene
Headquartered in Summit, NJ, Celgene focuses on cancer and severe, immune and inflammatory conditions. It has a number of successful drugs on the market, including Abraxane, Istodax, Otezla, Pomalyst and Revlimid. It also has a deep pipeline, with more than 300 clinical trials ongoing for hematological and solid tumor cancers, including multiple myeloma, myelodysplastic syndromes, chronic lymphocytic leukemia (CLL), non-Hodgkin’s lymphoma (NHL), triple-negative breast cancer and pancreatic cancer.
Celgene’s market value is around $103 billion. Saito-Chung notes that when a stock breaks out, it generally is already close to its 52-week or all-time highs and is likely to be trading above the 50- and 200-day moving averages. In the case of Celgene, it ran 5 percent higher to 132.38.
Saito-Chung writes, “The Street sees first-quarter profit at the Summit, NJ firm rising 24 percent to $1.78 a share. Celgene has posted EPS increases of 17%, 23%, 28%, 36% and 27% in the prior six quarters.”
Celgene is currently trading for $132.83.
2. Regeneron Pharmaceuticals
Based in Tarrytown, NY, Regeneron Pharmaceuticals has six drugs on the market with a pipeline that includes products for asthma, pain, cancer and infectious diseases. Its products include Arcalyst, Dupixent, Eylea, Kevzara and Praluent.
On June 11, the company announced with partner Sanofi positive results from two Phase IIIb/IV clinical trials of cholesterol medication Praluent in patients with diabetes. When given on top of maximally tolerated doses of statins, it showed significantly lower levels of low-density lipoprotein cholesterol (LDL-C).
Regeneron has a market value of about $55 billion. Saito-Chung writes, “Regeneron (97 Composite Rating, 94 EPS Rating) is extended from a first-stage bottoming-base entry at 453.06 as shares have soared more than 13 percent so far this week to 521.71. However, notice on a weekly chart how the stock may run into some upside resistance in the 550 to 590 price level.”
Regeneron is currently trading for $522.02.
3. Vertex Pharmaceuticals
Located in Boston, Mass., Vertex Pharmaceuticals is focused on viral infections, inflammatory and autoimmune disorders, and cancer. Its marketed products include Incivek for hepatitis C and Kalydeco for cystic fibrosis. The company recently presented nine data sets from various studies of Orkambi and Kalydeco at the 40th European Cystic Fibrosis Society (ECFS) Conference.
Saito-Chung writes, “Vertex (98 Composite, 79EPS) surged 5 percent to 133.30 in fast turnover and is moving further past a recent handle on a long base, giving a solid entry at 122.06 (10 cents above the May 2 intraday high). In the handle, the stock sloped lower along the intraday lows and corrected no more than 7 percent.”
Vertex is currently trading at $134.83.