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.

2 Comments:

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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