Biotech/Pharmaceuticals

Buyout Rumors Flood the Biotech Sector

 

She added that the biotech sector is in a place where the group could see more licensing pacts and collaborations, some of which would probably involve a large company striking a business deal with a smaller company. In those cases, there's always the chance for the larger company in a strategic alliance to be talked about as a possible acquirer.

"In an environment where we're potentially re-entering a bull market, investors are likely to hear more of these sorts of rumors," she said.

Dennis Harp, an analyst with Deutsche Banc, said that until more facts come out about any potential deals, making a sound judgment about which pairings might make sense and which don't was a difficult endeavor. "Until further information emerges, it would be useless to speculate," he said.

A recently proposed buyout in the biotech sector could have been the impetus for at least some of the takeover talk, he suggested.

"It might be related to news last week where it was announced that Chiron (CHIR) was acquiring PowderJect, and it was a good strategic fit," Harp said. "I'm not surprised that other potential mergers or acquisitions would be hypothesized."

>To order reprints of this article, click here: Reprints

TheStreet Premium Services

Jim Cramer
Jim Cramer's Action Alerts PLUS:
Trade right alongside a Wall Street pro — enjoy access to his Charitable Trust portfolio and be sent trade alerts BEFORE he makes a move. Learn More
OptionsProfits
OptionsProfits:
Get 50+ trade ideas a week from the industry's top options experts. Plus — exclusive commentary on market trends and essential trading tools. Learn More
Real Money
Real Money:
Our team of professional Wall Street Pros — including Jim Cramer, Doug Kass, and Nicholas Vardy — delivers intelligent analysis, timely trade ideas, and colorful commentary. Learn More
Stocks Under $10
Stocks Under $10:
Break into the market with small- and mid-cap stocks... all $10 or less! David Peltier tells you exactly which low-priced stocks he's buying and selling. Learn More
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
blog comments powered by Disqus
Dow Jones S&P 500 NASDAQ 10-Year Note
12,419.86 1,313.32 2,837.36 16.25
Oil *
103.00
DOWN
160.83
DOWN
19.10
DOWN
33.63
DOWN
1.06
10 Yr
1.62%
SPDR Gold
151.91
-1.28%
-1.43%
-1.17%
-6.12%
Data delayed 20 minutes

Top Stories and Tools

Articles From

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

We respect your privacy.
Podcasts

Connect with TheStreet