Biotech Buyout Is Back?


09-Apr-2018 16:42 PM




     Novartis  AG (NVS) announced its deal to buy the gene therapy AveXis Inc (AVXS) for $218 per share in a cash deal totaling  $8.7 billion. The Monday merger and acquisition help boosted the sector with iShares Nasdaq Biotechnology ETF (IBB) up +1.82%, and Spdr S&P Biotech Etf (XBI) up +2.67%. 

     This is the fourth major biotech buyout deal, the last three are:Cascadian Therapeutics (CASC), Juno Therapeutics Inc (JUNO), and Bioverativ Inc (BIVV).  Here a graph for the price before and after merger deal.

     It's piggy back time?

     The excitement in biotech land is back on and much needed after 67 days since the last merger news. Notable biotech advances stocks are:

  1. Regenxbio Inc (RGNX)
  2. Uniqure N.V. (QURE)
  3. Abeo Therapeutics Inc (ABEO)
  4. Innovate Biopharmaceuticals Inc (INNT)
  5. Audentes Therapeutics Inc (BOLD)

     What is next?

     We can only speculate, no one know for sure. From looking at these four biotech deal; three are from large cap buyout and they all share innovation medicine. Take time and research to find these hidden gems. We wrote a blog back in December 2017 for some ideas to do your due diligence. Here is the old blog, "Opinion:Biotech Buyout Ideas To Watch 2018"

Disclaimers: I have no long position in the stock mentioned above. These are my opinion and ideas. Always do your own due diligence and we are not responsible for any trade losses. Always seek your financial adviser for investment advice.

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Twitter: @BiotechMoney18




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Disclaimer! This is NOT an investment advice. The data result herein is purely speculation only. You must do your own due diligence and mitigate your risk. You acknowledge that will not be held responsible and accountable for any losses you may incur using our Biotech Data Calculator. Please consult your own financial adviser before executing trades.