It’s a seller’s market right now, meaning if you’ve got a product to sell that could potentially replace some glaring gaps that have opened up in the big pharma pipeline as the result of a slew of patent expirations, then you’re holding the leverage to hold out and wait for the best deal. Take some recent examples as evidence; GlaxoSmithKline (NYSE:GSK), for instance, made international headlines with an offer to acquire Human Genome Sciences, Inc. (NASDAQ:HGSI). That bid has since gone hostile when Human Genome demanded a better deal. Illumina, Inc. (NASDAQ:ILMN) also rejected two offers from Roche Holding (PINK:RHHBY) – one for $44.50/share and the other for $51/share — and Amylin Pharmaceuticals, Inc. (NASDAQ:AMLN) turned away Bristol-Myers Squibb Company (NYSE:BMY) earlier this year on a $3.5 billion, $22/share offer.
Given the boldness with which the potentially-acquired company held out in each case, it’s understandable why smaller companies with potential blockbusters in their belts would also figure to play a significant role in the merger and acquisition arena in due time.
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