"Biogen seen vulnerable to takeover after sell-off; $20b drop in value could spur buyback" by Robert Weisman Globe Staff July 27, 2015
Biogen Inc. may have to make a bold move to reassure investors — buying back shares or acquiring a smaller company — or the Cambridge biotechnology giant could become a takeover target, some stock analysts warned Monday.
The speculation followed a massive sell-off Friday that pared $20 billion in market value from Biogen’s stock, a 22 percent drop that was one of the largest single-day losses in value in the biotech industry’s recent history. Investors were reacting to a disappointing quarterly earnings report and the company’s lowering of its near-term financial forecasts.
Biogen shares regained some ground Monday, climbing 3.1 percent to $309.55 on a day when financial markets took another tumble.
The company is sitting on a cash stockpile of $4.5 billion, money that analysts say could be used to expand its product portfolio by buying another drug maker.
I wish I were.
Alternatively, Biogen could use the money to repurchase its stock, as other biopharma companies have recently done.
That is the $ign of a $ick economy and a biotech bubble.
Related: Buying Back Stock
Globe only bought for one day.
“We are in a world of eat or be eaten,” said Eric Schmidt, an analyst at the investment bank Cowen & Co. in New York. “If they don’t redeploy their cash efficiently or properly, there’s always a chance that somebody may come in and monetize their assets for them.”
I really don't care for the in$ide ba$eball of the "health" bu$ine$$, sorry.
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A straw poll of 90 investors conducted over the weekend by Umer Raffat, specialty pharmaceuticals analyst for the New York research firm Evercore ISI, listed Biogen and Illinois-based drug maker AbbVie Inc. as top takeover candidates for Allergan PLC, an Irish pharma company thought to be on the prowl.
The survey was done before Allergan on Monday disclosed the sale of its generic drug business to Israel’s Teva Pharmaceutical Industries Ltd. for $40.5 billion, bolstering the Irish company’s capacity to mount a bid....
Now I'm not feeling so good.
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Related: Biogen Blues
I'll bet all they need is some good advice....
Also see:
Genzyme to buy AstraZeneca’s thyroid cancer drug for $300m
Teva will pay $40.5b for Allergan’s generics unit
NDUs:
Drug makers attack patent challenges
The high-stakes art of turning cells into drugs
Maker of proton radiation system that treats tumors raises $200 million
Lot of money in the cancers corporations give you, and then they clean up treating you (with side benefit of some of the overpopulation just dying off).
UPDATES:
Baxalta rejects Shire’s $30 billion unsolicited bid
With Shire takeover bid looming, Baxalta CEO offers plan for growth
Laying a path for careers in science
I didn't take it.
