Celldex Therapeutics: Breakthrough Drugs At A Bargain Price : Seeking Alpha
Celldex Therapeutics: Breakthrough Drugs At A Bargain Price
Updated March 7, 2013
Disclosure: I am long CLDX. (More...)
Celldex Therapeutics (CLDX), presents one of the few values left in an overbought market. With around 80 million shares outstanding, the present market cap of near $700 million is a bargain that will not last much longer as the rest of Wall Street finally catches on.
I remember the days when I first got in the stock, when 100,000 shares traded daily was the norm and institutional interest was scant. Recently, Celldex just raised $90 million in its recent equity offering, and the stock actually traded up as a result. All signs are bullish.
The company has management that came over from Medarex, which was acquired by Bristol-Meyers for a song at $2.4 Billion. Yervoy, its lead drug candidate, is projected to be a blockbuster as sales continue to consistently grow.
Celldex's pipeline drugs are wholly owned and available for partnering. Additionally, that also makes it an ideal "bolt-on" acquisition target for big pharma.
The first drug to focus on is Rindopepimut, an immunotherapy treatment that targets EGFRvIII. As it's not found at significant levels in normal tissues but expressed in 30ish% of primary glioblastoma, it's an ideal target that has produced promising results to date. The drug candidate has shown consistent benefit for patients across three phase 2 studies- that's no fluke! It's currently in a global phase 3 trial in patients with newly diagnosed glioblastoma with results due in a couple years. In the near term, "Rindo" is also in a phase 2 combination study with Avastin in patients with glioblastoma that have relapsed and have few other options. Results from this trial should read out toward the end of the year! Also, a small phase 1 trial is being conducted at Stanford in children with pontine gliomas with results reading out toward the end of the year as well. Given the FDA's newly created category of "breakthrough s