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Opko Health Inc. (OPK), Pfizer Inc. (PFE): This Biotech Stock Looks Great for the Long Run

Probability of acquisition

Opko now has a lot of trial candidates in a variety of disease areas. One company that might acquire Opko might be Pfizer Inc. (NYSE:PFE). Pfizer Inc. (NYSE:PFE) needs new therapies for its pipeline. It is losing a lot of patents on drugs in the market, and it will need to acquire a company like Opko with a big pipeline of various drugs. Pfizer Inc. (NYSE:PFE) had lost the patent of Lipitor back in 2011, and at the peak point of its sales, the drug had achieved sales of $12 billion. Also, Pfizer has Viagra going off patent in the U.K., which will hurt sales. I think that Pfizer Inc. (NYSE:PFE) can benefit from acquiring the diversified pipeline of Opko to continue producing blockbuster drugs on the market.

Another big pharmaceutical company that would want to take a look at Opko is Merck & Co., Inc. (NYSE:MRK). Merck & Co., Inc. (NYSE:MRK) is struggling big time in the research and development of late stage drugs. Many analysts are saying that the company’s osteoporosis drug odanacatib doesn’t seem like it will lay out good results. Also, many analysts are skeptical of the cholesterol drug Vytorin. Vytorin is supposed to reduce risk of heart attack and strokes in patients. Merck & Co., Inc. (NYSE:MRK), so far, has shelled out $8 billion and has had a huge blunder of misses in late stage trials. The company may benefit by acquiring Opko as it may give the struggling big pharma a huge boost.

Final thoughts

Opko has a lot of mid stage and late stage products that will boost its value in the coming months. Long-term investors should do their due diligence and learn about the fundamentals of the company. Dr. Frost is known for building up small cap biotech stocks, and then selling them later to big pharma for billions of dollars. As  mentioned, many big pharmaceuticals companies are seeking small cap biotechs to acquire so Opko would definitely be a good stock to own.

The article This Biotech Stock Looks Great for the Long Run originally appeared on Fool.com is written by Terry Chrisomalis.

Terry Chrisomalis has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Terry is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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