Replies to post #247087 on Biotech Values

[rfj1862]

I think the acquisition will go through, whether there is a legitimate issue here or not.

Big pharma develops very little for themselves, and blocking acquisitions would destroy these companies. And of course they have a huge, powerful lobby. Plus they have the advantage that almost all big pharmas employ huge numbers of people in Democratic states like Illinois, California, NJ, Connecticut, and New York -- so the politicians that would normally be opposed to this (Democrats) will keep their noses out of it.

OT but I think one of the main reasons why big pharma has never really felt the political hammer is for that very reason.

[DewDiligence]

Re: Biotech mergers

The Barron’s article posted by ‘mufaso’ notes that sell-side analyst, Josh Schimmer holds the same viewpoint as you do.

…the scrutiny of bids for larger companies with real products could force Big Pharma to focus more on early-stage players, writes Evercore ISI analyst Josh Schimmer. “It might take 3-5 (or more) separate [small or medium-size] deals to equate one ‘large’ HZNP or SGEN transaction,” he explains. “It will force large pharma companies to be more active earlier on, and to take greater risks with M&A. It will also force these larger companies who otherwise might have been acquired to become consolidators themselves.”

This is net bullish for investors in small/midcap biotech companies, IMO.