Citi Investment Research has upped price targets in the biotech sector, including Biogen Idec Inc., ImClone Systems Inc. and Genzyme Corp. to reflect the probability of being acquired by a large pharmaceutical company. Analyst Yaron Werber suggests Biogen is the most likely to be taken out, with a probability of 80 per cent. As a result, he added $13 (U.S.) to his old target price to come up with an $87 estimate. In second spot is ImClone, best known for its Erbitux cancer drug. It gets a 50 per cent acquisition probability from Mr. Werber, taking the price target to $52 from $49. Genzyme rates only a 35 per cent likelihood of being acquired because it lacks growth drivers, has a thin pipeline and faces increasing competition. Nevertheless, he bumped up his price target by $6 to $77. Amgen Inc. is too big to be acquired, he figures, sporting a market value of some $63-billion. Moreover, he sees the company as "more of a buyer than a seller, although it has one of the largest revenues and biologics infrastructures in the industry."
Biotech takeover targets
Globe and Mail Blog Post
Last updated Thursday, Apr. 09 2009, 8:56 PM EDT