Nektar Therapeutics (NKTR)

[MrBruce]

Biotechnology Stocks Advancing On Cephalon Takeover Offer

3/30/2011 11:24 AM ET

(RTTNews) - Biotechnology stocks have shown a strong upward move on Wednesday, with Cephalon (CEPH) leading the way higher after receiving a hostile takeover offer from Valeant Pharmaceuticals (VRX).

The strength among biotech stocks is reflected by the 2.8 percent gain currently being shown by the NYSE Arca Biotechnology Index, which has risen to a record intraday high.

Shares of Cephalon have shown a substantial upward move on the day, advancing by 28 percent. With the gain, the stock has risen to its best intraday level in over two years.

The gain by Cephalon comes after Valeant offered to acquire the company for $73 per share in cash, representing a total value of approximately $5.7 billion. The offer represents a 24 percent premium to Cephalon's closing price on Tuesday and a 29 percent premium over its 30-day trading average.

Amylin Pharmaceuticals (AMLN) is also turning in a strong performance, with the biopharmaceutical company currently up by 4.2 percent. Shares of Amylin are climbing further off a two-year closing low set last Wednesday.

Nektar Therapeutics (NKTR), Qiagen (QGEN) and Alexion Pharmaceuticals (ALXN) are also posting notable gains, contributing to the strength in the sector.

by RTT Staff Writer

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