Earlier this year, the industry saw three of the largest buyout deals in recent years (Pfizer/Wyeth, Merck/Schering-Plough and Roche/Genentech). Barron's speculates that additional mega-mergers are unlikely over the next 12 to 18 months, due to the fact that there are fewer major buyout targets. Additionally, some companies have already said that they won't pursue a big deal, are looking for smaller acquisitions or are expanding is emerging markets or generics. Yet there there are still a number of Big Pharma companies hunting for smaller acquisitions. After scanning the market for the most likely candidates for new M&A deals, the group has compiled a list of likely buyers and buyout targets.
Bristol Myers Squibb, Sanofi-Aventis and AstraZeneca are all facing patent cliffs and have yet to do a bid deal. More diversified companies such as J&J, Abbott and Novartis could also be looking to reduce their dependence on current blockbusters. Here are the buyout/buyer targets Barron's identifies:
- Alexion Pharmaceuticals for BMS, Abbot or Eli Lilly
- Amylin Pharmaceuticals for Lilly
- BioMarin Pharmaceuticals for Abbott, BMS or Lilly
- Rigel Pharmceuticals for Abbott, BMS or J&J
- Salix Pharmaceuticals for Forest Labs
- Vertex Pharmaceuticals for BMS, Gilead or J&J
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