celgene is the pest pipelibest pipeline in biotech.gen, this could be a $320 tok by the end of the week because of the positive news flow we've seen in the name. something gets lifted up in one of those, where a little cover, stocks move. >> let's stick with big pha a ma and biotech. another week of earnings, mike khouw has the latest. >> hey, how are you? >> so, yes, we have three names that are reporting this week. collectively, we're see iing th options market a pli about a $10 billion swing in valuations. first, pfizer. markets implying about a 2% move. that translates just you should $4.6 billion move. that stock and we have allergan. about a 3.7% move. that's about a $3.7 billion swing there and then finally, i bimarine. about a billion in market cap. all thee have been seeing bullish flow. in pfizer, only 2% and then average move significantly larger, the september calls are getting a good value on a cheap stock to make a bullish bet. the other two because the moves are typically larger, you see people selling calls, mildly bull

celgene is popping 20%. they don't see it slowing down any time soon. firm upgrading the stock today. welcome. it's good to have you on. >> it's made a sizeable move. why aren't you late with this call? >> you have to put it into context. the sector has one of its worst runs in the past several decades so really i think we're in the early stages of recovery for the sector and when you look in the early stages of recovery in the sector you want to look for those who you think will be the leader going forward and we think celgene will be the leader for the next 12 months. >> the issues that have effected drug pricing, criticism of companies in the biotech and health care space aren't going to go away any time soon. do you worry that some of that is going to come back on the campaign trail and it's going to hit the sector again or do you think as some of our folks have suggested it's all in there. everybody knows it's all in the stocki stocks and now they're prime for a breakout. >> i think it's a combination of both. i don't think the problem is going do

a the other hand we have winner for a loser up somewhat modestly, 0.5%, celgene.eating analyst dean. they believe the 2020 targets are achievable and represent upsides. they established a price target of $138 per-share, suggesting 18% upside is possible for the shares of celgene. vonnie: what about more broadly? abigail: we have been talking all year about a bear market in biotech. recently within that, we are looking at a bull markets. we have seen this in the one-year chart of the nasdaq biotech chart. trough to 25 percent, peak moved up. it is a bull market within the bear market. it is still down 25% from the july 2015 peak. this is somewhat fitting on my conversation earlier with the warden of the bloomberg intelligence analyst. he called it a revival. there is still drug pricing pressures that could be ahead. it is a stock pickers market. the easing where they sell these could have catalysts for the company that could make it worth taking a look at. vonnie: thank you for that. let's check in with first word news. courtney collins has more. news is: the europ

sanofi made an overture, and have astrazeneca, celgene and gilead, but it was pfizer's $14 billion that won out. sending shares up almost 20%. shares of pfizer fell slightly. meg tirrell tells us why medivation was so sought after. >> reporter: a $14 billion deal phaser beat our rivals to win in an all-cash deal that capped a month-long process. with it pfizer gained the prostate cancer drug this draws more than $2 billion in retch, proceeds that are split with the partner. and it gains two experimental drugs for cancer, building up a growing fo global spending on cancer medicines reached $107 billion last year, and is expected to top $150 billion by 2020. pfizer and other drug makers have made it a priority which has put biotech companies in the cross hairs for acquisition. investor whose e-squared asset management says that the drug jipt should do more deals to gain an even bigger presence in important areas, including immu investors rejoiced at the deal as well as the premium paid. it was 20% more than the closing share price friday, but almost $5 billion more than sanofi originally

celgene says the accusations are baseless.- teaming up with google, $700 billion over the next seven years. uber has ended its war in china with the deal with didi. according to people familiar willthe matter, uber s .ell to didi they have been pushing to sell the business due to big losses. you have more on the uber deal. let's head to beijing. when you look at uber, how does across through your world when it comes to the economy? to keene does not like extrapolate on the numbers. it shows the strength and potential demand for china. absolutely. at the corporate level, there is a lot of logic to this. hemorrhaging. i think the biggest story here -- i think their art to potential ingles is the first discontinued excitement from the chinese consumer, already the biggest contributor to gdp growth. tom: that is right where i wanted to go. the dreaded phrase of joint venture. i have seen enough joint ventures collapse, not workout, or disappoint. give us the state of the phrase joint venture in your china. >> it is an evolving sit

celgene study coming on. lot of stocks bounce right now because there's a lot of shuffling in the portfolio. a lot has come from the medivation deal. you can't stress enough, if david were here, i think we would be talking about sanofi was outbid by pfizer and so there's a lot of money around. a lot of bankers had raised a lot of money to go after medivati medivation. who's next. or will gilead break up into a slow and fast. abbott has done a lot of acquisitions. a piece about medtronic. how they have everybody covered. you want to compete against medtronic you have to buy other companies. the action in health care is why this market is so -- >> we will talk to bill george later in the morning. >> the company he created but they -- he will be the first to tell you they made great acquisitions. medtronic is a powerhouse. i cannot believe how strong this company is. industry is filled with strong companies. edwards life science, abbott. >> somebody said it's a good time to be a mid-sized biotech company. >> it

i was looking at general electrics and celgene. it was pure guesswork. now contrast that with a the 998-point brake down. we didn't know what the cause was at the time. we heard that it might be that greece was in imminent danger of defaulting. what else is new? and we had troubling footage of riots in the streets of athens, we had to resume that something horrendous had to be happening. as if somehow our assets were being tossed no a grill of kingsfords, set on fire. perhaps because i traded through the 1987 crash from a basis of a tenth of where the dow is now, i had the suspicion that something was just plain wrong with the machine, the machines that control the stocks, but not the i happened to be on tv at the time of that flash crash. let's go to the videotape, the videotape from the 2010 crash. >> what we're seeing rate now, i mean, maybe, talk about capitulation. let's look at p&g, it is now down 25%. that stock is just there you go and buy it. >> a few minutes ago -- >> it wasn't, i just said go buy it. right in the middle, go buy p&g. let's say

celgene, interesting that it is up. filings are showing the company allegedly donated to charities that help patient support higher-priced cancer drugs. a scandal brewing there. right, julie, thank you. let's check on the bloomberg first word news. mark crumpton has more from our newsroom. mark: the clinton campaign got the post convention bounce it was hoping for. the cbs poll has hillary clinton to 39%.donald trump 46% after the republican convention, a cbs survey had the two candidates side. unfavorable views of mrs. clinton have dropped six points to 50%. some gold star families are in a letter to mending an apology from donald trump for critical comments about the parents of a muslim war hero killed in iraq. a say in the letter "your recent comments regarding the khan family were repugnant and personally offensive to us." of cap 10, the father whom i and con -- donald trump said it is about radical islam and the united states. a tank and other vehicles in libya targeted -- the pentagon press secretary says the airs

celgene says the accusations are baseless.avid: china is considering a sweeping overhaul of the steel industry. steelmakers would be consolidated into two giant companies, one in the north and the other in the south. the consolidation will be part of the government effort to end overcapacity in state-run industries. theie: verizon is buying company in the deal. .erizon paid $60 a share the deal is expected to go in q4. david: that is your business flash update. vonnie: let's turn to a developing story. the c.d.c. is warning pregnant women not to travel to an area of miami. 10 new cases of the zika virus have been discovered in the neighborhood north of downtown miami. the number of cases in florida is now 14. joining us from atlanta with the latest on the battle against the disease is dr. tom frieden, director of the c.d.c. thank you for joining us. have these cases often isolated? >> there are 12 cases in this one-long radius, within a 100-50 meter radius in the winwood area north of downtown miami. these are all cases spread

you know how you tell your children, look at celgene. they had a price increase, it was a small price increase, which is normal for these companies to do. bio pharma has it right. they understand how to do it in a staged way that's not going to really have a massive sort of impact on sentiment and what have you. this was an absolutely obscene price shift. it's going to have an impact on smaller companies. >> i think all this does is recap the multiple. doesn't change the earnings. just means that the stock is probable trapped. >> still ahead, amazon could be about to take the streaming wars to a whole new level, but is it too late for them to compete with apple and spotify? plus, check out that move. best buy nearly 20%. you won't believe how high one trader is betting it will go. all that after the break. you're watching "fast money" on cnbc. first in business worldwide. i'm here at the td ameritrade trader offices. steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform a

you can see these, celgene trading up 1.4% now. question becomes, are they going to start looking around for other potential targets. jefferies putting out a note today saying investors are at least spec cue lating sanofi may turn its sights on biomarine and two other drugs working, two other stocks working in the cancer space include tesaro and enclovis, ticking up on speculation they may be looked at as well working in the same class as one of the drugs medivation makes. a lot moving today and maybe biotech will be coming back on m&a speculation. >> that is certainly cramer's thesis. meg terrell. a look at crude falling below 48. where is it headed and what does that mean for the markets? we'll talk about that. a former gop official under reagan calling on trump to, quote, do the right thing and end his campaign. he's going to join us to make his case in a moment when "squawk on the street" comes back. this just got interesting. why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both e

. >> celgene, ouch! painful. need a -- epipen. >> not an epipen. >> xanax doesn't cover it. >> playing the music. >> they're not. not yet. almost 12:33 on the east coast. where markets stand. not at the highs, not that far off. triple digit gain for the dow. 18,500 we'll call it. >> shouldn't we go to the news? >> should we do that? >> with who? >> with sue herera. i just like to hijack your show a few minutes. >> go ahead. sue? >> i love being hijacked by jim cramer. perfect. >>> all right, thanks, guys. tell you what's happening at this hour. on a serious note, an isis suicide bomber striking a wedding south of baghdad killing at least 15 and wounding more than a dozen. five suicide bombers took part in that attack, but the other four were killed by security forces. >>> france's interior minister gathering leaders of the country's muslim community with the aim of mending relations between islam and the french state. he ruled out drafting a national law to ban burqinis, a move sought by a number of right-wing le

celgene up 1.5%. in terms of targets, jeffrey pout a note says sanofi may turn its attention to rare disease drugmaker biomarins, stock up 5.7 today. and incite, a midcap biotech and vertex working on cystic fibrosis, and companies are trading up today. maybe on speculation this is a hot class. other people want to buy in. >> what do we think, first are all, what this does for pfizer, and whether or not the buzz is true? in terms of the others? >> so pfizer really needs to add branded drugs, because they're still up in the air whether or not they're going to split the company from two and float faster growing on-brand drugs. maybe not big enough without adding this. pfizer says, five cents secretive next year. may be important strategically for that reason. what are your thoughts as far as the immunotherapy? still an area where there's a lot of promise? the one i bet on is bristol-myers, a big one, but then a lot of small ones. does that continue to stay in the focus for m & a? people talking about th

july 28th, celgene reported, this stock is now up 11, 1 points and igniting a big rally. amgen was decent. watch for genron. suddenly, this group has legs and i've got to tell you, this is highly unusual to pass the torch from you know, software to chips and now to biotech. this is what i'm talking about about why it's so hard to be negative. this group has one of the great shorts of 2016 and now, it's treacherous. gl what's on mad tonight? >> we have kimco. they're not being put out of business by amazon. how is that possible? people like yield. but i've got to delve into this because again, like biotech, like this is an unlikely move to seed simon properties so strong. really so strong. >> every year, the reads are among the best performing group of assets. >> honestly, these stocks, if simon fell a couple of points, then who cares about the yield. he would say enough. 40, 50%. this group is so hot. >> property $72.5 billion market caps. >> isn't that unbelievable in. >> people really real estate for money you don't need for ten years. equities. >> everybody wants, the

but you do have i mentioned this the other day quickly but celgene, gilead, pfizer, merck, and sanofihowing expressions of interest. >> you know who is interesting not showing an expression of interesting -- >> it's not clear anything will get done prior to labor day but i'm going to be away like so many for a little bit, keep an eye on that one. >> i want to return to brent saunders and allergen. he's going the opposite. a lot of people thought he would be in there buying. >> very small stuff. >> $5 billion to buy back his stock at this level and then he will reload for another $5 billion if this stays and it's pipeline for him. developing a very good pipeline. he's the opposite of these other guys who might find pipeline chaegds. eli lilly should be in medvation their pipeline is getting challenged. >> maybe so. >> who should be looking. >> that's a lot of potential. >> some of these biotech stocks like biomer rin, using the strength to raise capital to do these very difficult drug trials, but yeah, medivation is on the block. notice who else is not buying and i salute them, whom i

celgene -- okay. >> i can't imagine they sell for that cheap valuation anyway but does a deal have to on a franchise and have to and make an acquisition. there's going to be big m & a and keeping a bid to the space for a long. and they're sitting on hordes of cash. they have to bolt on franchises to basically offset franchises that are really have lost momentum or are going to the wayside essentially. >> all right, guys. good discussion. bio techs in focus. david, chad, thank you. >>> for more trading nation, go to tradingnation.cnbc.com. we're back after this. hey gary, what are you doing? oh hey john, i'm connecting our brains so we can share our amazing trading knowledge. that's a great idea, but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders? i know. your brain told my brain before you told my face. mmm, blueberry? tap into the knowledge of other traders on thinkorswim. only at td ameritrade. >>> we promised. here it is. imagine looking out the window and seeing th

whether it's sanofi or pfizer or celgene. gilead and or merck. >> and merck. look at gilead.ne of the greatest single discoveries of all time but it's a cure. and you know cures, unfortunately, are not as good as continuals. >> yeah. >> but anyway, i bring lily to mind because once again, what i find is that when you have faith in big pharma, you better really have it nailed down. and i was shocked at opdivo, wasn't sure about -- i think lily is a little -- frankly, bau i like those guys, a little too promotional. >> noncell lung cancer. >> i went to a doctor who didn't tell me that was -- >> you heard the opening bell. here at the big board the autism society did the honors, nasdaq, communications network, there you go, celebrating their 40th anniversary. congrats on that. s&p real time exchange getting itself together, a mixed open at this point. p. >> we haven't talked seconda secondaries. >> we haven't talked about supply and haven't talked -- never really got to the equity offerings, follow on offerings not necessarily secondaries. >> let's look at two different ones. fi

celgene reported better than expected numbers, they have for the last several years and went up.eron could do the same thing the tell if the thing is back or not. the biogen was kind of like, i don't know, thought it was bush to be able to have that story. that story is not exactly been confirmed by people. >> yeah. >> you can float anything. i mean, david and i sit here and we constantly talk about the idea it's a very easy to say it's going to be blah-blah-blah and blah-blah-blah, talking to so-and-so. guys talk. that's what people do. investment bankers talk. to get it quoted, david sitting here i could easily turn to him and say hershey, 120. >> yeah. >> and then suddenly it gets like hey cramer thinks. no. let's do reporting. do reporting. >> all right. we'll see you soon. >> moon shot. >> look forward to it. moon shot at 9:00. back after this. it's a golden opportunity to experience breath-taking lexus performance in street-legal form. for a limited time get great offers on our complete line of f sport performance vehicles. at the lexus golden opportunity sales event. can a