Biotech M&A activity26 Jan 2012 06:50
An interesting piece this morning from my news feed. It basically reaffirms the point made earlier about the current trend for M&A in the sector and the premium prices being offered.
The point about the 11.9% advance in the fourth quarter alone shows the strengthening of sentiment in the area & another reason i think we could be in for a bidding war here.
"The biotechnology sector made impressive progress during the past year. Neither the government debt crisis nor recessionary pressures nor all the turmoil on the currency front were able to stop the Nasdaq Biotech Index from closing the year in positive territory.
In the fourth quarter alone, the index advanced 11.9% (in USD), which ultimately led to a gain of 11.8% for the year as a whole.
Once again, M&A activity had a major influence on market sentiment towards the biotech sector. The transaction of the year was clearly Gilead's USD 11 bn offer for Pharmasset, which valued the company's shares at a 90% premium to their previous closing price."
http://www.moneyam.com/action/news/showArticle?id=4297430