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

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

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

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!