AstraZeneca plc (ADR) (AZN), Pfizer Inc. (PFE): Celldex Therapeutics, Inc. (CLDX) Is Still a Buy

There has been a significant rally in the share price of Celldex Therapeutics, Inc. (NASDAQ:CLDX) recently. The stock is still showing positive momentum due to strong data on its drug trials. This positive data makes the company an attractive target for big pharmaceutical players like Pfizer Inc. (NYSE:PFE) and AstraZeneca plc (NYSE:AZN) . I believe that the positive momentum will continue and that Celldex Therapeutics, Inc. (NASDAQ:CLDX) is still a buy despite recent rallies.

Celldex Therapeutics, Inc. (NASDAQ:CLDX)

Celldex is a biopharmaceutical involved in the development and commercialization of novel oncology therapeutics. The company focuses on the treatment of cancer and other difficult to treat ailments with its antibody precession targeted immunotherapy platform. It currently has seven candidates in various stages of clinical development. The lead candidate is Rindopepimut, which is a targeted immunotherapeutic for the treatment of front-line glioblastoma. The drug is currently undergoing two clinical trials, ReACT trial in Phase and Act IV Registration trail in Phase III. Another major candidate is CDX-011, which is currently in late stage Phase II for treatment of breast cancer.

Quarterly Results

The market was expecting Celldex Therapeutics, Inc. (NASDAQ:CLDX) to report EPS of $-0.25 but the company missed by 8%, blaming the earnings miss on higher than expected R&D expense. Royalty payments also saw an increase and were responsible for the higher than expected revenues of $3.65 million. All earnings misses result in a negative market sentiment, but this earnings miss doesn’t impact the long term valuations of the stock because the long term value of the company is tied to its pipeline.

CDX-301

Celldex released positive data for its candidate CDX-301 on Feb 14. The market has responded positively to this announcement, and the stock has appreciated approximately 40% since then. According to disclosures,

‘The final results from this study are consistent with previous clinical experience and demonstrate that CDX-301 is well-tolerated and can effectively mobilize hematopoietic stem cell populations as a single agent in healthy volunteers.’

The Rally

The recent rally in the stock price of Celldex has been primarily due to positive investor sentiment on CDX-301Phase I data released by the company last month. The data showed that test patients who took the drug saw an increase in CD34+ and dendritic cells. This is positive information for improvement in transplant outcomes.

In November the company announced positive Phase II data for rindopepimut.