Biotech Values

[Mufaso]

Barron's story-> "Washington Is Coming Down Hard on Deal Making. What It Means for Stocks."

https://www.barrons.com/articles/washington-deal-making-ftc-lina-khan-407af9c1

Here is one excerpt:

For U.S. companies seeking acquisition targets, Let’s Make a Deal has morphed into Deal or No Deal. If Federal Trade Commission Chair Lina Khan has her way, deal making could be canceled altogether.

It’s no secret that Khan isn’t a fan of the way tech companies such as Facebook, with its acquisition of Instagram, have used mergers to maintain and consolidate power.

Here is an excerpt related to biotech:

“The FTC’s first challenge to a pharmaceutical merger in recent memory seems much more philosophically motivated by potential anti-industry bias than grounded in merited analysis,” writes Lee Brown, global sector lead for healthcare at Third Bridge.
Amgen says it’s still committed to the deal, but the reaction in the market was immediate—and far reaching. Horizon stock fell 14% as investors knocked a big chunk off the deal premium, while Seagen (SGEN), set to be bought by Pfizer (PFE), slumped 6% on concerns that the FTC would sue to block that deal as well. But the pain didn’t stop there. Many biotech companies that develop drugs, try to bring them to market themselves or hope to be bought by a larger competitor with the expertise to produce and distribute them. With the latter avenue looking riskier, the market has adjusted prices downward. The SPDR S&P Biotech XBI +0.76% exchange-traded fund (XBI) dropped 2.9% on Tuesday, its largest decline in nearly two months.