AVNR - GREAT ARTICLE
Avanir Pharmaceuticals (AVNR) Now Potential 'Buyout Target'
By: John Bodger
Last Updated: Nov. 2, 2010 -8:45am EST
(NEW YORK)--With FDA approval for their Nuedexta drug, Avanir Pharmaceuticals, Inc.. (NASDAQ:AVNR) may find itself an attractive 'buyout target' for larger pharmaceutical companies seeking to expand their product portfolio.
Late Friday, the U.S. Food and Drug Administration approval makes the drug Nuedexta the first approved treatment for the little known, but not that rare, condition called pseudobulbar affect (PBA) in which patients cannot control outbursts of crying or laughter.
Large pharmaceutical companies are on the lookout for strong ready-to-market or late-stage product as many face an impending patent cliff on several blockbuster products. Some potential acquirers could be Biogen Idec, Teva Pharmaceutical, and Novartis AG that focus on central nervous system disorders could find Avanir an attractive purchase
Tom Bustamante, the Managing Partner at Ludlow Capital, Inc commented, "The FDA approval for Avanir's drug now makes the company a much more attractive acquisition. Add in that the drug was cleared with no black box warning, which should allow more broad duel use, and that larger pharma companies were already looking at Avanir before the approval from the FDA, we could quickly see buyers coming out with bids for this company. In our opinion, we could see shares for Avanir shares move well beyond the $10 price mark in the very near-future".
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