Noted Deutsche Bank analyst Barbara Ryan says that Pfizer is likely to make a major play to establish itself in biotechnology, with a bid for Amgen likely. Discussing the challenges that pharma faces, Ryan told clients in a conference call that Pfizer has a lot of cash in the bank and needs to do something dramatic in the face of looming generic competition for its blockbuster drugs.
"The most likely company to act first is Pfizer largely because they have the biggest cliff to mount," Ryan said. "The deal we think makes the most sense is Amgen. Pfizer has talked about being a player in biotech and oncology...They can't really pussyfoot their way around this. We believe they've got to put a big stake in the ground, and Amgen would do that."
As the Dow Jones report notes, a play for Amgen would require a huge offer. Amgen is valued at $61 billion and would demand a hefty premium.
- check out Amgen's Big Biotech Stock Report
- read the article from Dow Jones