Onyx Pharmaceuticals, Inc. (ONXX), Alexion Pharmaceuticals, Inc. (ALXN): 3 Biotechs That Could Be Bought Out This Year

Buyout fever

Just because a company is open to being acquired doesn’t necessarily mean that it will be acquired, as is the case for Onyx. And just because a larger company has the motive and the means to make an acquisition doesn’t mean that it will happen. Pfizer Inc. (NYSE:PFE), for example, could benefit from a smart buy and certainly has the cash to make a deal happen. However, CEO Ian Read hasn’t placed a high priority on acquiring smaller companies. Roche might want Alexion, but the price tag could ultimately prove too high.

Getting buyout fever can be a dangerous disease for investors. Chasing a stock on buyout rumors only to have those rumors fail to pan out can be hazard to your portfolio’s health. The smarter approach is to buy a stock based on its own merits. If the company gets bought out, that’s great. If not, you’re still holding a stock with good prospects for producing gains.

The article 3 Biotechs That Could Be Bought Out This Year originally appeared on Fool.com and is written by Keith Speights.

Fool contributor Keith Speights has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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