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.Leerink Swann Says M&A Is One Reason To Get Invonved In Biophama (AGL, DNDN, BMRN, HGSI, more...)
12:14 pm ET 07/12/2010 - StreetInsider
In a report today analysts a Leerink Swann commented biophama stocks saying with sentiment so negative, there is nowhere to go but up. The firm highlighted 10 short- or long-term strategies they believe can renew interest in the industry and drive multiple expansion and sector outperformance.
One the one of the ten reasons the firm cited was possible M&A in the sector. The firm said current valuations offer attractive opportunities for acquisitions based on "attractive financial transactions, opportunities to beef up pipelines, or the chance to bring in products that have improved longevity."
Large-cap targets include: Allergan Inc. (NYSE: AGN), Bausch and Lomb, Genzyme Corp. (Nasdaq: GENZ) and Shire Plc (Nasdaq: SHPGY).Mid-cap with products on the market that offer growth or synergy: Acorda Therapeutics, Inc. (Nasdaq: ACOR), Alexion Pharmaceuticals, Inc. (Nasdaq: ALXN), Amylin Pharmaceuticals, Inc. (Nasdaq: AMLN), Biomarin Pharmaceutical Inc. (Nasdaq: BMRN), Dendreon Corp. (Nasdaq: DNDN), Hospira Inc. (NYSE: HSP), King Pharmaceuticals Inc. (NYSE: KG), United Therapeutics Corp. (Nasdaq: UTHR)Mid-caps with promising pipeline candidates: Achillion Pharmaceuticals, Inc. (Nasdaq: ACHN), Amarin Corporation plc (Nasdaq: AMRN), Human Genome Sciences Inc. (Nasdaq: HGSI), Inhibitex Inc. (Nasdaq: INHX), MAP Pharmaceuticals, Inc. (Nasdaq: MAPP), Optimer Pharmaceuticals, Inc. (Nasdaq: OPTR), Ardea Biosciences, Inc. (Nasdaq: RDEA), Regeneron Pharmaceuticals, Inc. (Nasdaq: REGN), Savient Pharmaceuticals, Inc. (Nasdaq: SVNT), Pharmasset, Inc. (Nasdaq: VRUS), Zymogenetics, Inc. (Nasdaq: ZGEN)Small/mid-cap platform investments: Tengion, Inc. (Nasdaq: TNGN), Micromet, Inc. (Nasdaq: MITI).
The other 9 reasons the firm cited to get involved in the sector were: Aggressive price increases in the private pay segment; Premium price new innovative drugs; Aggressively repurchase shares; Lobby & campaign; Cut operating expenses; Expand "theranostics" strategies; Pursue difficult-to-genericize products; Develop more "drugs within drugs"; Develop a system to replace the AERS database |
