Celgene Corporation (CELG)’s New Acquisition — of Celgene

A great deal
Some were skeptical of Amgen, Inc. (NASDAQ:AMGN)‘s big share repurchase announced in late 2011. However, the company confounded the critics with shares climbing more than 50% since the announcement. I don’t know if Celgene will necessarily see that kind of stock movement, but I expect good things lie ahead.

Celgene’s forward price-to-earnings multiple currently stands at 0.79. That’s cheap. Of course, forward multiples like this rely on future growth estimates. In Celgene’s case, I think those estimates are pretty solid. Revlimid and Vidaza continue to grow nicely. Tremendous potential exists with Abraxane and Pomalyst. Throw a solid pipeline into the mix, too. My opinion is that Celgene’s latest $600 million “acquisition” of its own shares is a great deal for shareholders.

The article Celgene’s New Acquisition — of Celgene originally appeared on Fool.com and is written by Keith Speights.

Fool contributor Keith Speights has no position in any stocks mentioned. The Motley Fool recommends Exelixis. The Motley Fool owns shares of Dendreon and Exelixis.

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