A big part of investing in biotech is owning takeover names. The quick gains offset a lot of mistakes. Having a biotech stock get bought out simplifies the “sell” decision, too.
I think the government will likely fail. Then it will be “game on” again for the mergers and acquisitions trade and biotech in general. Let’s take a look at the odds of success based on analysis by Jefferies biotech analysts Michael Yee and Akash Tewari, and their legal experts. I’ll also explain why the pressures on big pharma to buy biotech companies are so big, and more about the three names I single out.
Collectively, these losses will leave a revenue hole of more than $60 billion. To show the extent of the impact, consider that Humira recently generated over 40% of AbbVie’s revenue and Keytruda accounted for about 30% of Merck’s sales. 3 potential buyouts For my short list of potential biotech takeover candidates, I looked for names that clear three hurdles. First, they had to be on a list of 15 biotech stocks Yee thinks are M&A candidates because these companies have big product launches over the next several years. This makes them attractive candidates to big pharma looking to fill revenue holes.