Juno Therapeutics: What The Celgene Potential Acquisition Foretells

Summary

  • Celgene Corporation is in the discussion to acquire Juno Therapeutics.
  • Highly favorable M&A environment foretells more acquisitions to come in 2018.
  • It's prudent to take some profits while keeping the rest of one's shares for further upsides.

One, which I mention several times elsewhere, is the need for patience if big profits are to be made from investment. Put another way, it is often easier to tell what will happen to the price of a stock than how much time will elapse before it happens. - The Father of Growth Investing (Philip Fisher)

On Jan. 16, 2017, the bioscience market has reacted with enthusiasm from the news that Celgene Corporation (NASDAQ:NASDAQ:CELG) is in discussion to acquire Juno Therapeutics (NASDAQ:NASDAQ:JUNO). The aforesaid development came a week after the New Jersey-based pharmaceutical giant announced the acquisition of the private firm, Impact BioMedicine. As follows, Juno’s shares traded $23.65 higher at $68 (for over 51% gains for subscribers of Integrated BioSci Investing (“IBI”). At IBI, a good number of our stocks have been acquired over the years. The most notable firm is the leading CAR-T innovators, Kite Pharma (NASDAQ:KITE) that delivered over 82% profits. It was acquired by Gilead Sciences (NASDAQ:GILD) in late 2017. Moreover, it is highly likely that Celgene (NASDAQ:CELG) will be bought out. Furthermore, we also feature other potential M&A candidates for 2018. Of note, the purchasing of companies that delivered the robust run-up is one question. The other inquiry is how should you manage your holdings that deliver substantial gains due to the news leak about an upcoming M&A? In this report, we'll elucidate several viable strategies.

Figure 1: Juno Therapeutics stock chart. (Source: StockCharts)

Fundamentals Analysis

Prior to diving into the portfolio strategy analysis, we wish to provide investors a rundown of the pertinent theme in bioscience - one that is fostering a highly favorable M&A environment that, in and of itself, will play an important role this year. In prior research, we mentioned that large pharmaceutical companies are facing the patent expirations of

Author’s Notes: We’re honored that you took the time out of your busy day to read our market intelligence. Founded by Dr. Hung Tran, MD, MS, CNPR, (in collaborations with Dr. Tran BioSci analyst, Ngoc Vu, and other PhDs), Integrated BioSci Investing (“IBI”) marketplace research is delivering stellar returns since inceptions. To name a few, Nektar Therapeutics (NASDAQ:NKTR) procured more than 280% profits; Spectrum Pharmaceuticals (NASDAQ:SPPI) delivered over 150% gains; Kite Pharma netted 82%. Exelixis Inc (NASDAQ:EXEL) earned greater than 50% capital appreciation. Our secret sauce is extreme due diligence coupled with expert data analysis. The service features a once-weekly exclusive in-depth Integrated BioSci Alpha-Intelligence article (in the form of research, reports, or interviews), daily individual stocks consulting, and model portfolios.

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Disclosure: I am/we are long ALPN. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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