CNBC finally got around to talking about Biotechs. Joe Kernan and David Faber began talking about more mergers. They said that smaller companies like WLA, SGP, and PNU would be pushed to consolidate, but larger companies like MRK, BMY and AHP would also be impacted.
They again mentioned R&D as a major driver and cited SBH's early deal with HGSI (genomics) as well as AFFX's gene's on chips. These new technologies will lead to many new research avenues which will be very expensive.
Of course the big boys are already familiar with LGND. PFE, GLX, AGN, ABT, AHP, SBH, Sankyo, and LLY have already taken equity positions. LGND's drug discovery is more advanced and compounds are much closer to market (3-4 NDAs slated for this year including one this quarter) and companies like LLY are jumping into the rexinoids with both feet.
Similarly, LGND has SERM programs with PFE, AHP, and LLY, so even tighter niches are being actively persued by multiple partners.
The big boys will move up big time today, but the affect will trickle down to the Biotechs when the street gets a chance to access the implications. |
