When biotech stocks become as big as some of the second-tier drug stocks, it represents billions of dollars worth of value when these move 5% or 10%. That is exactly what we are seeing on Monday in shares of Gilead Sciences Inc. (NASDAQ: GILD) and Celgene Corp. (NASDAQ: CELG). Positive drug news is the culprit on each.
Celgene Corp. (NASDAQ: CELG) is surging by 9% to $78.00, versus a 52-week high of $81.24. With a prior market cap of $30.2 billion, this is more than $3 billion of added market value. The news is that a late-stage trial showed that Abraxane significantly improved the lifespan of pancreatic cancer patients. The company did not offer a formal number, but this was for a combination therapy.
Gilead Sciences Inc. (NASDAQ: GILD) is up more than 10% to $72.00, a new 52-week high, and we would note that the market cap was $49.2 billion before this news. The value add is close to $5 billion in additional market capitalization. The news behind the move is that a combination of its Hepatitis C therapies cured the virus in 100% of patients in a trial. This news was part of the American Association for the Study of Liver Diseases in Boston.
With the value being added to the market in these two stocks, the market is indicating the potential for a blockbuster drug status on each bit of news.
JON C. OGG
Filed under: 24/7 Wall St. Wire, Biotech, Healthcare Tagged: CELG, GILD