Is Celldex Therapeutics (CLDX) Stock the Next Clovis Oncology (CLVS)?

- February 25, 2017

A BNL Member emailed our biotech specialist Liam Hunter a question about diversification and CLDX stock:

“Liam, I am new to investing with about $20,000 to start. I plan to add $6,000/year over the next 10 years which exceeds Brian’s “Retire A Millionaire” plan. I bought two stocks, one is Celldex Therapeutics, Inc (NASDAQ:CLDX). I know it is a high risk stock, but I also think it could go a lot higher. Would you own CLDX and do you think Glembatumab is a real drug?”

Liam’s take on CLDX stock

A picture is worth a 1000 words, and the following pretty much illustrates the entire story with Celldex Therapeutics, Inc (NASDAQ:CLDX) over the last few years.

Strong data with Glembatumab vedotin (CDX-011) allowed CLDX stock to rise from $2 to nearly $40 in just two years. Then, realization set in that Celldex needed a lot more data on Glembatumab vedotin to take it to market, and the attention turned to the company’s most mature candidate, Rintega.

Rintega ended up failing its Phase 3 trial in treating glioblastoma multiforme, brain cancer, patients. That, coupled with the stoppage of other trials forced CLDX stock owners to step back and consider that maybe they rushed into thinking that Celldex was the next Celgene.

The rest is history, with CLDX stock giving back all of its gains and essentially no hope or promise baked into Celldex valuation that Glembatumab vedotin will be a success.

With that said, if Glembatumab vedotin were to be successful in its Phase 2 trial, a trial that is large enough to support an FDA approval, then CLDX stock would end up following the pattern of one Clovis Oncology (NASDAQ:CLVS).

As seen, CLVS stock surged in 2013 behind data. It then fell in late 2015 because of data, and has since bounced nearly 400% off its lows thanks to data. Sarepta Therapeutics (NASDAQ:SRPT) is another like CLVS stock.

In April to July 2016 sentiment was lowest with no hope for CLVS stock owners. That’s where CLDX stock owners find themselves today. Can it be turned around? Does Celldex Therapeutics and Glembatumab vedotin have a realistic chance to right the wrong? To answer this very specific BNL Member question, BNL Members can continue to read.

As always, my analysis and opinions are for BNL Members only.

Biotech Hunter: CLDX stock

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  1. […] couple weeks ago I published a post explaining why Celldex Therapeutics Inc (NASDAQ:CLDX) could become the next Clovis Oncology. I used the […]

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