Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : Munch-a-Biotech Today -- Ignore unavailable to you. Want to Upgrade?

To: rkrw who wrote (2530)	4/21/2008 2:00:29 PM
From: tuck	Read Replies (3) \| Respond to of 3158

>>Merck CEO: Sizing Up Mid-Cap Biotechs For Possible Purchase Last update: 4/21/2008 11:23:23 AM By Peter Loftus Of DOW JONES NEWSWIRES Merck & Co. (MRK) is still on the hunt for a biotechnology company, and sees opportunities even as several biotechs have been snatched up by rivals, Merck's CEO said Monday. Chief Executive Richard Clark told Dow Jones Newswires the "perfect" deal would be a biotechnology company with: a mid-sized market capitalization; existing products that can boost Merck's revenue; and a drug research focus "aligned" with Merck's research efforts. "We're aggressively looking at those types of companies," Clark said in an interview after the company reported improved first-quarter earnings, adding that he hasn't made a final decision. Clark has been talking up such an acquisition for a couple of years but hasn't pulled the trigger, though Merck has made smaller acquisitions and license deals. Biotech valuations have increased, which would make most deals expensive. Meanwhile, the list of biotechs fitting Clark's criteria has dwindled, as rivals such as AstraZeneca PLC (AZN) have pulled the trigger. Earlier this month, Takeda Pharmaceutial Co. (4502.TO) agreed to acquire Millennium Pharmaceuticals Inc. (MLNM) for about $8.8 billion. But Clark said Monday he read a list of potential acquisition targets last week, and "there's still plenty of opportunities that exist." He declined to identify any targets. Still, he's not going to write a blank check. "I'm not going to do it at the wrong price," Clark said. "I'm not going to put the shareholders' value at risk by doing something inappropriate." Merck shares recently rose 0.1% to $39.80. -By Peter Loftus, Dow Jones Newswires; 215-656-8289; peter.loftus@dowjones.com>> Juxtapose this with that pdf you posted a while back about Merck's research interests and disinterests, and I'll wager you can come up with some guesses on this one. Here's the pdf: merck.com PCSK9 Isis, though it's thicket of big pharma partnerships might make this a tough munch for anyone. Perhaps a diabetes target of interest is still unpartnered (there are two novel ones). More likely a partnership than a takeout. Speedel (though I don't follow it closely enough to know if NVS has first dibs on the RAAS pipe there. Rigel for arthritis, perhaps other things. GTx for sarcopenia and BPH, perhaps other things. Merck already is partnered with GTx here, but a takeout is still plausible. Would BioDel count as a "breakthrough" insulin? Obesity . . . Arena? Arena's R&D effort needs to be taken over by somebody competent. Antibacterials . . . Cubist doesn't really have anything in the pipe, do they? Maybe Theravance, now that GSK has passed on taking them out at high prices? Don't know anything about their pipe, but I think they've got a wider one than Cubist by a pretty big margin. Antivirals. IDIX would be a target for Merck if it wasn't for the NVS interest. INCY? MYGN for the viral budding program and perhaps AD, but I doubt anyone gives flurbie much of a chance, including Merck. Scizophrenia maybe NPSP's mGluR programs are of interest? But that would more likely result in a partnership than a takeout. I'm sure other biofreaks can add here, and perhaps debunk on or two of my ideas. Now that I look at my list, GTXI looks ripest for the picking by Merck. I haven't followed CEPH recently . . . Cheers, Tuck