Celgene (NASDAQ: CELG): This Overvalued Biotech is in Danger of Plummeting as Much as 30%

As the stock market recovered in 2009 through 2011, almost every sector posted impressive gains. Those steady-as-she goes increases continued for most stocks well into 2012 and 2013, but major biotech stocks simply took off like a rocket. Many of them surged more than 100% over the past two years, creating tens of billions of dollars in profits for investors.

Leading biotechs adroitly refilled their drug pipelines (through both acquisitions and internal R&D), which set the stage for steady, solid sales growth. Thirty-nine new drugs were approved by the FDA in 2012, a rate that had not been seen since the mid-1990s. That flurry of approvals helped fuel sales growth in subsequent years, even though the number of new approvals dropped to 26 in 2013, according to Goldman Sachs (NYSE: GS).  (more)

Please share this article