NEW YORK (TheStreet) -- What's the deal with Alexion Pharmaceutical (ALXN) -- literally? TheStreet's Jim Cramer and "Mad Money" Research Director Nicole Urken discussed what traders can expect from the drastic acquisition talk surrounding the pharma company.
While the M&A prospects for the broader markets have seemed rather dull this year, biotech has been red hot, with huge acquisitions lighting up the financial headlines throughout 2013.
Both Bloomberg and Reuters have reported that a deal between Alexion and Roche is being talked about and Cramer said that they are not backing down from those claims.
Furthermore, Oppenheimer & Company also expects a deal and have priced it between $148 and $208. The estimates represent a premium of at least 27%, based on the lower end of the estimates' range and from Monday's closing price of $107.93.Cramer did say that he already thinks Alexion is overvalued, but that he thought that about other pharmaceutical companies that have been takeover targets this year. While some may argue over valuation, he did conclude, "I gotta believe there's a deal and it's going to be well in excess of where the stock is now." -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV