|Bid||0.00 x 1800|
|Ask||0.00 x 36100|
|Day's Range||25.40 - 25.44|
|52 Week Range||9.59 - 29.55|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
It's not a secret that every investor will make bad investments, from time to time. But serious investors should think...
With sector weakness since early April shaving 8%-10% off the iShares NASDAQ Biotechnology ETF (IBB) and the SPDR S&P Biotech ETF (XBI) for example, potential takeover targets in fact are now more attractive. Large pharma and biotech companies need to build out their product pipelines, and many have the buying power to make acquisitions. "The appetite for M&A is still high," says Jared Holz, of the healthcare sector trading desk at Jefferies.
Gene therapy continues to be in focus given the recent spate of deals and acquisitions. We highlight four stocks, which have promising gene therapy candidates in their pipeline.
Investing in biotech stocks has its up days and its down days. For investors in Biogen (NASDAQ:BIIB) -- and more importantly millions of Alzheimer's patients around the world -- yesterday was a down day. On Thursday, Biogen stock plunged more than 30% on the cancelation of stage 3 clinical trials for a blockbuster Alzheimer's medication.Source: Shutterstock The massive drop was truly an unsettling surprise for BIIB shareholders as the drug was seen as a multi-billion blockbuster and game-changing medication for treating the disease. It really did come out of nowhere. The question now is whether to cut bait or fish. Was the drop enough to get investors excited about Biogen stock again?Given its huge revenue drivers, now cheaper price and still large pipeline, the answer is a resounding yes.InvestorPlace - Stock Market News, Stock Advice & Trading Tips What Happened at Biogen?Biotech stocks trade based on expectations. Something positive happens and then investors send the stock skyward and wait for the next big event to occur. It's all about what's coming down the runway. Expectations build upon that. This is true for large biotech stocks as well.For Biogen, the expectation build-up had to do with its Alzheimer's drug candidate aducanumab. The drug was in the class of monoclonal antibody medications. Basically, aducanumab was designed to break down the beta-amyloid plaques that can build up in the brain. These amyloids interfere with communication between brain cells and cause Alzheimer's and mild dementia. Back in 2014, BIIB saw some serious success with aducanumab during an early-stage study. It actually seemed to reduce the build-ups. * 7 Retail Stocks That Will Continue to Rebound in 2019 Thanks to this very positive early trial, Biogen decided to skip over smaller phase 2 studies and move the medication into larger and more advanced stage 3 testing. The idea was that Biogen could skip through the process and land a Food and Drug Administration (FDA) approval much faster. And there was a good chance for that considering how well it did early on.For Biogen stock, this would have been a major win on several fronts.For starters, there have not been any new Alzheimer's therapies approved in more than 15 years. meanwhile, the Alzheimer's Association pegs more than 5.8 million Americans currently living with the disease. Biogen was looking at a potential blockbuster with huge revenue implications. And it potentially needs that revenue to fill the coming declines in its multiple sclerosis portfolio.Unfortunately for BIIB and Alzheimer's patients, they'll have to wait a bit longer.Biogen and its partner Eisai reported that they would discontinue two late-stage trials for the drug after doing a futility analysis. An independent data-monitoring committee came to the conclusion that aducanumab was "unlikely to meet the primary endpoints" in either study.With expectations for the company to score a major blockbuster, investors abandoned Biogen stock. BIIB fell 30% -- or $90 per share -- and had its worst day of trading in nearly 2 decades. Biogen Stock May Be Worth SnaggingBiogen stock's loss was tremendous and goes to show just how much investors were valuing the drug as part of BIIB's future prospects. But perhaps, investors have taken Biogen down too much on the news.For starters, Biogen isn't a fly by night clinical-stage biotech stock. It's just the opposite. The firm has a portfolio of some pretty big blockbusters already. Thanks to winners like Spinraza and Tysabri, BIIB's portfolio managed to see a 10% jump in sales last year to more than $13.45 billion. Moreover, that portfolio managed to generate more than $5.3 billion in free cash flows and impressive earnings.And it's using those profits in a smart way. The key is that Biogen has been building a full pipeline to create a multi-franchise neurology portfolio. This includes its recent buyout of retinal degeneration specialist Nightstar Therapeutics (NASDAQ:NITE). So yes, losing Alzheimer's does stink, but the biotech's rich pipeline and cash flows give it plenty of wiggle room to buy or develop a pipeline. According to CFO Jeff Capello, adding up cash flows, cash on hand and its ability to leverage up and "you get a $37 billion number, which gives us a lot of capacity to add to the business."It's a song and dance we've heard plenty of times before. But Biogen has the firepower to make it work. It can buy a pipeline successfully.For that pipeline potential and drugs already producing revenues, Biogen stock is going for dirt cheap. After yesterday's 30% haircut, you can now snag the biotech firm at just 8.7x free cash flows and a trailing P/E of just 10.50. That's bargain-basement pricing for a biotech leader. For example, Amgen (NASDAQ:AMGN) can be had for a P/E of 14, while Gilead Sciences (NASDAQ:GILD) is closer to 16. Nibbling at Biogen StockGiven the steep drop and perhaps overreaction that sent Biogen stock into extreme value territory, investors with a longer-term timeline may want to consider snagging some of the firm's shares. * 7 Beaten-Up Stocks to Buy as They Reverse Course The lost of the Alzheimer's drug does hurt, but BIIB still has plenty in the tank to get it through. And with today's valuations, there's a decent margin of safety associated with shares. The time to start buying could be now.Disclosure: At the time of writing, Aaron Levitt held a long position in the iShares NASDAQ Biotechnology Index (IBB) -which holds GILD, BIIB and AMGN. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks That Will Continue to Rebound in 2019 * 5 Stocks To Buy for the Happiest Employees * 7 ETFs for a Millennial Portfolio Compare Brokers The post Biogen Stock Fell Too Far on Unfortunate News appeared first on InvestorPlace.
Biogen's pending acquisition of gene therapy player Nightstar Therapeutics only offers a "modest pipeline boost," an analyst said Tuesday. Nightstar is working on therapies for eye diseases.
Biogen Inc (NASDAQ: BIIB ) announced Monday a deal to buy gene therapy biotech Nightstar Therapeutics PLC (NASDAQ: NITE ) for $800 million. The Analysts Baird analyst Brian Skorney maintained a Neutral ...
Stocks that moved substantially or traded heavily on Monday: Children's Place Inc., down $9.78 to $84.82 The children's clothing retailer reported weak fourth-quarter results and issued a weak forecast. ...
Nightstar Therapeutics soared early Monday after Biogen pledged to spend $800 million to buy the gene therapy firm. The smaller biotech is working on gene therapies in rare eye diseases.
Nightstar Therapeutics stock was soaring on Monday following news that Biogen (NASDAQ:BIIB) is acquiring it.Source: Biogen via YouTubeThe deal will have Biogen spending a total of $877 million to acquire Nightstar Therapeutics (NASDAQ:NITE). This will have the company paying $25.50 in cash for each share of Nightstar Therapeutics stock.The offer price of $25.50 per share for Nightstar Therapeutics stock represents a 70% premium to the stock's 30 trading day volume-weighted average price. It is also a 68% premium over the stock's closing price from Friday.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBiogen notes that all issued and to be issued shares of Nightstar Therapeutics stock will be acquired by Tungsten Bidco Limited. This is a newly-incorporated company and wholly-owned subsidiary of BIIB."I am proud of Nightstar's achievements, delivering two proof-of-concept programs and building a world class organisation," Chris Hollowood, Chairman of Nightstar Therapeutics, said in a statement. "We look forward to seeing the next chapter of Nightstar's journey under Biogen's ownership, as it works to achieve its ultimate ambition of delivering transformational treatments to patients."Biogen and Nightstar Therapeutics are expecting the acquisition deal to close during mid-2019. However, it will first have to get regulatory approval and complete other customary closing conditions. Among these is approval from holders of Nightstar Therapeutics stock for the deal. The acquisition does not need approval from shareholders of BIIB. * 7 Top-Rated Stocks to Buy for March Nightstar Therapeutics is getting its financial advice for the deal from Centerview Partners and Jefferies LLC. The company's legal advice concerning the matter is coming from Arps, Slate, Meagher & Flom LLP.Nite stock was up 66% and BIIB stock was down 2% as of noon Monday. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 Retail Stocks Ready to Break Out * 7 Strong Buy Stocks the Street Loves * 10 Best Stocks to Buy and Hold Forever As of this writing, William White did not hold a position in any of the aforementioned securities.Compare Brokers The post NITE, BIIB: Nightstar Therapeutics Stock Soars on Biogen Buy appeared first on InvestorPlace.
Becoming the latest players in the health care space to consolidate, Biogen Inc. (BIIB) announced on Monday morning it is buying London-based gene therapy company Nightstar Therapeutics PLC (NITE) for $800 million. According to the terms of the all-cash deal, the Cambridge, Massachusetts-based biotech company will pay $25.50 per share of Nightstar, which represents a 68% premium to its closing price of $15.16 on Friday. Warning! GuruFocus has detected 5 Warning Sign with TSX:ATD.B. Click here to check it out.
Nightstar shares were up 66% to $25.16 in trading Monday. Biogen's offer for Nighstar is $25.50 a share. Nightstar makes gene therapy treatments for choroideremia, a rare, inherated eye disease that leads to blindness.
Biogen Inc (NASDAQ: BIIB ) is the latest biotech company to jump onto the gene therapy bandwagon . What To Know Biogen, which focuses on developing therapies for neurological and neurodegenerative diseases, ...
Biogen Inc said on Monday it will buy Nightstar Therapeutics Plc for about $800 million in cash as the company looks to tap into a potentially lucrative gene therapy market. Biogen's offer of $25.50 per ...