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
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