That 40% premium is in addition to the nearly 70% gain the stock has experienced this month, driven by the takeover speculation. And for InterMune shareholders of the past five months, they are now sitting on a 250% gain.
Orbimed, one of the biggest and best billionaire healthcare hedge funds in the world, owned more than 5% of InterMune. Today's opening price increases the value of Orbimed's stake by $100 million, compared to Friday's close.
M&A in the biotech sector is on pace to break a record in 2014. We've seen more than $87 billion in deals done as large pharmaceutical companies are buying smaller biotech's to expand into new markets and find new pockets of growth.
In our research at BillionairesPortfolio.com, we have found that in almost every single takeover deal in the biotech sector, there has been the presence of a top billion-dollar hedge fund that has owned a controlling stake in the target company. The great thing about takeovers is that they can occur in any market condition, bear or bull.
With that, the five stocks listed below all have the potential to be acquired for a 100% premium or more, and each are heavily owned by a top hedge fund or billionaire investor:
1) Array BioPharma (ARRY) : Orbimed Advisors, the same hedge fund that quadrupled its money on InterMune owns 5% of Array. Furthermore, sell side analysts have a $10 price target on Array.
2) Dyax (DYAX) : RA Capital Management, a billion dollar hedge fund that has averaged 40% a year since 2002 without one losing year, owns more than 7% of Dyax. RA Capital is run by one of the smartest biotech investors in the world, Peter Kolchinky, a PhD from Harvard in Virology.
3) Amicus Therapeutics (FOLD) : Perceptive Advisors is not only one of the top performing biotech hedge funds in the world, but it is one of the best hedge funds on the planet. Perceptive is a billion dollar plus hedge fund run by Joseph Edelman and has returned an incredible 42% annualized since 1999. If you would have invested $10,000 in Perceptive in 1999, you would now have an incredible $1.3 million dollars! They own more than 15% of Amicus.
4) Seattle Genetics (SGEN) : Seattle Genetics is owned the top multi-billion dollar biotech focused hedge fund, Baker Brothers Capital. They not only control more than 18% of Seattle Genetics, but they have been increasing their stake in the stock heavily over the past three months.
5) Repros Therapeutics (RPRX) : Sarissa Capital owns almost 5% of Repros Therapeautics. Sarissa Capital is run by Carl Icahn's former head of Healthcare Investments, Alex Denner. Denner has a PhD from Yale in Biology and is one of the best new biotech hedge fund managers on the street.
Disclosure: Subscribers of BillionairesPortfolio.com own Array Pharmaceuticals.
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
TheStreet Ratings team rates ARRAY BIOPHARMA INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate ARRAY BIOPHARMA INC (ARRY) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income and generally disappointing historical performance in the stock itself."
- You can view the full analysis from the report here: ARRY Ratings Report