Cramer vs. Cramer: What's the next big biotech takeover target?
Now that the final wrap-up of Amgen's $10.4 billion buyout of Onyx is underway, analysts can get back to one of their favorite pastimes: Speculating on the next big biotech M&A deal that could make executives rich and investors' portfolios burst with big gains.
Jim Cramer certainly isn't letting that bus pass by. The "Mad Money" host (and chairman of TheStreet.com) has three favorites: Medivation, Seattle Genetics and BioMarin.
- Medivation ($MDVN), of course, bounced back from a high profile pratfall on Alzheimer's to score a big hit with Xtandi, the new prostate cancer drug that is helping to shake up that fast-changing market. Cramer is looking for some positive news from ongoing studies, including a shift to early-stage patients and a head-to-head with J&J's Zytiga. "If the prostate cancer data that comes out in the next couple of months is positive, I could easily imagine Medivation catching a bid, a big one that could come at a major premium to where it's now trading," Cramer tells CNBC.
- Seattle Genetics ($SGEN) has an approved drug--a lure for any big company on the prowl today. And in addition to Adcetris the biotech has become one of the leading go-to outfits for the hot field of targeted cancer tech. Still, pharmas are rarely attracted to partnership milestones--even $3 billion worth--or a minority share in potential royalties.
- Finally, there's BioMarin ($BMRN), which is also in one of biotech's sweet spots: rare diseases. BioMarin also comes with marketed products, which would help satisfy analysts leery of the high risks of drug development. Currently valued at a bit more than $9 billion, though, any premium is going to test Big Pharma's appetite for major deals.
The rumor mill has recently been buzzing over stories that Roche ($RHHBY) has been prepping a huge buyout of Alexion ($ALXN), though plenty of analysts are still shaking their heads over the economics of buying a company after its stock has already spiked. And we're never far from the next Shire ($SHPG) takeover story.
Of course, you don't have to have your own show to speculate about the next biotech takeover. Why not share your suggestions in the comment box?
- here's the story from CNBC
Bayer beefs up cancer drug pipeline with $520M armed antibody deal with Seattle Genetics
BioMarin shares pop on strong pivotal data for rare disease drug
Medivation wins FDA OK for blockbuster prostate cancer drug