BioMarin’s stock jumped last week as a buyout rumor began just before a routine conference call with analysts concerning the company’s developmental drug programs.
FierceBiotech: “Shire ($SHPG) is an acquisitive company with a focus on rare diseases. BioMarin ($BMRN) fits the same description. A blog post that, by its own admission, “might be codswallop,” reported that the former is considering buying the latter. And those three facts combined to send the shares of BioMarin, far from a penny stock, up as much as 15% on Friday, illustrating how the biotech boom has changed Wall Street’s perception of the drug industry.” Full article
MarketWatch/Health Exchange: “BioMarin shares held strong, up more than 11% to a new closing high of $128.78, after the note from Deutsche Bank analyst Robyn Karnauskas said the company’s shares could jump close to the $300 level over the next year. BioMarin has several drugs in the pipeline dealing with hemophilia, achondroplasia (dwarfism) and Duchenne muscular dystrophy. It also is working on a drug dealing with the metabolic disorder Pompe disease and the fatal neurodegenerative ailment Batten disease. “If there is pipeline success, we think an M&A premium will go into the stock in ,” Karnauskas wrote. “We currently see a potential takeout at $170 a share.” Full article
TheStreet: “WHAT’S NEW: “Well-informed” sources are saying that Shire recently approached BioMarin about a merger deal, Ben Harrington of the blog Betaville reported last night. It’s not clear how far the talks have progressed, but Morgan Stanley (MS) and Lazard (LAZ) are advising Shire on a deal that could be worth $65B, the blog added. ANALYSTS’ TAKE: The recent acquisition of Pharmacyclics (PCYC) by AbbVie (ABBV) shows that drug companies need to acquire products and pipelines, UBS analyst Andrew Peters wrote in a note to investors earlier today.” Full article