Analysts: Think P&A, not M&A

It's time to forget about mergers and acquisitions and start focusing on partnerships and acquisitions--or P&A, according to the analysts at Leerink Swann, which specializes in healthcare stock. In a research note printed by Seeking Alpha, Leerink Swann explains, "we see an unprecedented confluence of highly motivated buyers (large- and mid-cap biopharma companies with substantial portfolio gaps but a surplus of cash) and sellers (biotechnology companies holding valuable assets but desperate for cash). With the quantity and quality of deals poised to rise, there is the potential to create value for shareholders of both buyers and sellers."

Analysts have been torn over whether Bristol-Myers Squibb is a buyer or a target, but Leerink lists the company among the most likely buyers, along with Forest Labs. The companies on the analysts' fantasy P&A shopping list for BMS? Alexion Therapeutics; Vertex Pharma, which just acquired Canada's ViroChem Pharma; and United Therapeutics, whose stock still hasn't recovered from the plunge that followed last year's trial failure.

According to Leerink, interest in small and mid-sized biotechs is high. Its top 10 list of P&A targets is an interesting mix: Alexion, Biodel, Cougar Biotech, Cardiome Pharmaceuticals, Elan, Inspire Pharmaceuticals, Javelin Pharmaceuticals, Orexigen, Sucampo Pharmaceuticals and Savient Pharmaceuticals.

- read the piece at Seeking Alpha for more

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