Thursday, November 09, 2006

Tanox Gets Taken Out

After the bell today, Genentech (Ticker: DNA) announces that it will acquire Tanox (Ticker: TNOX) for $20 per share or $919 million in cash. I like this acquisition by Genentech. The company will no longer have to pay Tanox royalties for Xolair and gains access to Tanox's monoclonal antibody technology / pipeline. The M&A trend in biotech continues to move forward and I see more to come. Genentech is my favorite big cap biotech. I also like Celgene (Ticker: CELG) and Vertex (Ticker: VRTX) in the mid cap space.


At November 11, 2006, Blogger airborneintell said...

Good trade on NYX.
What is your take on GSK and GENZ?

At November 11, 2006, Blogger Money Turtle said...

Thanks, sometimes I just get a bit lucky. I'm not too crazy about GSK. It's a mega cap drug company with single digit EPS growth. I see a lot of value in Genzyme. The street is a bit skeptical about it's earnings because their Q3 top line numbers was a bit light. I see consistent ~ 20% EPS growth for GENZ. I don't see it moving until Q4 numbers are out.


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