Medivation Inc (MDVN), Seattle Genetics, Inc. (SGEN) – Biotech Buyouts: Who’s Next?

Page 1 of 2

There’s been plenty of buzz lately about the continuing saga of the possible buyout of Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX) by Amgen, Inc. (NASDAQ:AMGN). After initially rebuffing Amgen, Inc. (NASDAQ:AMGN), Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX) warmed up to the possibility — for a higher price, of course — although its hesitancy to share ongoing trial data for blood cancer drug Kyprolis temporarily muddied the waters yet again.

All of the drama has prompted me to think about the inevitable question: Who’s next? Biotech buyouts sometimes beget other buyouts. Even when they don’t, they get people thinking about acquisitions. Here are three companies (from lowest to highest market cap) that I think could be possible pick-ups for the right buyer.

1. Medivation Inc (NASDAQ:MDVN)

Several big drugmakers could be kicking themselves for not buying Medivation Inc (NASDAQ:MDVN) already. The biotech landed the top spot on a recent ranking of the best-performing biotech stocks of the last decade. How good was Medivation Inc (NASDAQ:MDVN)’s performance? Only an 11,000% gain over 10 years!

Medivation Inc (NASDAQ:MDVN)’s success has been powered by prostate cancer drug Xtandi. Approved by the Food and Drug Administration a year ago, Xtandi racked up sales of nearly $158 million in the first half of 2013. Medivation Inc (NASDAQ:MDVN) splits the revenue, though, with partner Astellas Pharma.

Analysts peg Xtandi’s peak annual sales potential between $1 billion and $2 billion. Medivation Inc (NASDAQ:MDVN)’s market cap is currently a little more than $4 billion — just two-to-four times those peak sales estimates. That valuation isn’t bad for a big pharmaceutical company looking to buy growth potential.

2. Seattle Genetics, Inc. (NASDAQ:SGEN)

Another biotech that I suspect could be on the radar screen for potential acquisition is Seattle Genetics, Inc. (NASDAQ:SGEN). The stock has been on a tear so far in 2013, with shares soaring 78%.

Seattle Genetics, Inc. (NASDAQ:SGEN)

The crown jewel for Seattle Genetics, Inc. (NASDAQ:SGEN) is Adcetris, which treats Hodgkin lymphoma and anaplastic large cell lymphoma, or ALCL. Adcetris generated nearly $70 million in sales for the biotech during the first half of 2013. Seattle Genetics, Inc. (NASDAQ:SGEN) markets the drug in the U.S. and Canada, while its partner Takeda/Millenium owns the rights to market Adcetris in the rest of the world.

With a current market cap of $5 billion, Seattle Genetics, Inc. (NASDAQ:SGEN) wouldn’t be too much of a stretch for a buyout by several large players. One thing I could see getting in the way of any deal, though, is concern that the stock is priced too highly right now.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!