Hmmm. This is selling at 40 X's the 2014 earnings and over 10 X's revenues. It would appear that this is quite ahead of itself, much like many of the biotechs. So Sanofi's stake has some thinking of a buyout. Just how much premium from here can be justified to a board of directors versus riding out the partnerships on a variety of compounds? It will be awfully hard to pass up a short position should this move up any more
I did end up "going for it" at $278 before it hit $283. It was just getting too far in front of itself. Closed short position today. There could be more downside to $230-$235 but I am satisfied with my gain
So Cramer promotes REGN along with his other biotech favorites Gilead, Biogen and Celgene. But look at the comparison: GILD 19X's forward earnings, 8 X's sales, BIIB 22 X's forward earnings, 9 X's sales, CELG 17 X's forward earnings, 9 X's sales AND then there is REGN. 41 X's forward earnings, 17 X's sales. So REGN warrants a valuation that is double these other companies who also have robust pipelines?